iAt a recent Buildex Vancouver conference, Senior Managing Director John Dowse had the pleasure of speaking on a panel about The Importance of Strong Project & Commercial Management Administration. Moderator Ms. Suzanne Checkryn (Director, Prairies Region, Revay and Associates Limited), alongside industry colleagues Mr. Jerry Crawford (Principal Director, KGC Consulting Services Ltd.) and Mr. Robert Poole (Senior Managing Director, Construction Solutions, FTI Consulting), elicited the following probing questions and core themes to gather thoughtful insights from the experts.
Why are strong project and commercial management administration so important to construction?
The importance of strong project and commercial management administration in construction is derived from lessons learned from previous projects, including the need for effective communication, accurate documentation, and a strong, motivated team. Construction projects often experience delays and additional costs due to technical issues, over-optimism, and strategic misrepresentation. Vigilant governance and diligent oversight from the outset of a project through to completion are necessary to mitigate these risks, with responsibility lying with the owner, the owner's representative, and the contractor during the tendering and construction phase.
Every construction project carries elements of risks.
Every construction project involves risks, and there are increasing trends toward transferring these risks from the owner to the contractor. It is important to have a clear understanding of the project, risk allocation, and obligations of both parties before executing a contract. When evaluating tenders, the lowest bid price may not always be the best indicator of value, and careful consideration should be given to addressing all risks. Effective contract administration and management, as well as commercial management, are crucial for the project's success and financial viability.
What should my management processes look like?
The management processes for construction projects vary globally, but the importance of records is crucial. Records should include information on the number of workers, work progress, interruptions, contractors, productivity, equipment, instructions, tests, inspections, delays, and weather conditions. Early detection of issues provides more options for dealing with them. Larger organizations and more complex projects require broader processes for monitoring and recording schedule, progress, changes, additional work, delay, resourcing, procurement, and costs. It is important to know what needs to be done, when and why it needs to be done, how to do it, and how much it costs.
I have lost money and I think I have a claim. What do I do now?
To manage a claim in case the project does not go smoothly, it is important to know and follow the contract's change management procedure. Claims should be made as soon as possible, and it is essential to prove that the argument can be substantiated. Utilizing the dispute resolution process in the contract and seeking expert advice can be helpful. It is important to know when to call in experts for advice.
Tips for presenting effective claims
While there is no standard template for writing claims, there are certain principles that should be followed to make them as effective as possible. These include identifying the events and their impact, developing a strategy, maintaining a working relationship with the other party, following contract requirements for notifying and presenting claims, substantiating the claim, focusing on the important issues, and keeping the claim reasonable and simple. Despite no guarantees, it is important to put forward your best arguments.
