10 Commandments Post Contract

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The Ten Commandments of Post ContractA Guide for Contractors and Specialist Sub-Contractors

A ConstructPRO UK LLP White Paper! 10 Commandments of Post Contract

Copyright 2011 by ConstructPRO UK LLP. Page 1


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Contents

Introduction! 3Agree Valuation Dates...! 3Check you have all the up to date information...! 3Follow the build programme...! 3Put everything in writing...! 4Agree variations as you go...! 4Make sure your payment claims are clear...! 5Do not over claim...! 5Do not accept payment on account...! 6Follow up any non payment...! 6Monitor your Employers Credit Rating...! 7




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Introduction

The following list are 10 things you must do after you sign up to a construction contractandmaintain for the duration of the works.

As well as helping you out of a dispute situation it is a good way to improve upon yourprocesses and will provide you with the data to carry out a thorough Post ContractAnalysis. Hopefully this will be with a reasonable profit or at the very least what youexpected at tender stage.

Either way it will help you get better and in these tough times goodness knows it couldmake the difference between surviving or becoming a sad statistic.

1. Agree Valuation Dates...

And stick to them!!

When it is commonplace for some employers to use any excuse to delay paymentwhy make it easy. If youre late with submission then they can be late paying you.

Make sure you have good reporting systems so that you can pull together yourclaims in a clear and concise manner.

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2. Check you have all the up to date information...

As soon as you have been appointed, i.e. a written contract is in place you mustverify all of the contract information, drawings, specifications, scope and so forth.

You must compare it to what you tendered on and any changes that will impact theproject timeline or the budget should be notified in writing to the employer.

Any notification should clearly state the cost/time impact and the recourse you seek.

For example an extension of time or an increase to the contract sum.

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3. Follow the build programme...

In these days of electronic project control software and schedules that areconstantly updated in line with realtime, on-site, multiple sub-contractor and supplychain issues, it is hyper-critical that you keep an eye on where you slot in, so-to-speak.




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Delay analysis in Dispute Resolution is becoming something of a science. If youhave no records of what took place at the time, or any form of correspondencebetween you and the employer in respect of variations to the cost/time line, youcould be out on a limb and find yourself exposed to L&A damages.

Make sure you and your staff are keeping accurate site records, diaries and soforth. They will prove invaluable in the event of a dispute.

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4. Put everything in writing...

As I said in the 10 Commandments of Pre-contract.

Everything and I do meaneverythingthat you sayor doand likewise the employing

party say or do must be recorded in writing. Every discussion, query, letter, email,drawing, specification, reference, site diary and so on must be documented.

How can you resolve a Dispute if you cannot prove it?

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5. Agree variations as you go...

You need to ensure that you have a robust and workable system for monitoring site

activity. Most contractors focus on making sure the work gets done and that delaysare kept to an absolute minimum. Whilst this is admirable, who pays for the cost ofthis?

Dont bury your head in the sand. Variations should always, always, alwaysbeagreed in writing before you start the work. This includes the cost of the variationand any impact on the programme. I cannot emphasisethis point enough.

A variation isnt just an extra claim for payment as most contractors think. Avariation could be a delay caused by another party that could at a later stage costyou money in damages.

Okay but the Main Contractor insists that work proceed with all due haste or else.

Your response - or else what? Check the contract!! I would wager that there will bea clause in their contract that states that all variations must be agreed in writingbefore they are started.

In other words theyare in breach of their own contract terms. Why should you putyourself at risk of non-payment by accepting this breach? Dont do it.


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10.Monitor your Employers Credit Rating...

With contractors going out of business at an alarming rate it has never been morecritical to have credit control procedures.

Ratings change make sure you keep up to date and ensure that you are notunnecessarily exposed.

When you registered your company with Companies House, HMRC and the othermyriad agencies did you say you were a company or did you say you were acharity?

Thought so!!

If your employer is abusing your rights and not playing fair then you need to take

immediate action.

Your suppliers and creditors cannot survive on handouts and you cannot sustaincontinual non-payment or late payment.

As a business owner you have a duty of care to ensure the survival of yourcompany and therefore sometimes that means you will need to get tough on thecompanies who are no longer classed as clients but now come under the headingof liabilities.

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ConstructPRO UK LLP are a Private Practice of Dispute Experts, Quantity Surveyors and ProjectManagers based in Central Scotland, currently operating in the UK and Middle East.

For more information visit www.constructpro.com

If you have been forwarded this by a friend or colleague please make sure you sign up for your ownpersonal copy. There will be follow up emails focussing on each of the issues I have stated above.

About the Author

Yosof Ewing worked in contracting for over 15 years at senior level before setting up ConstructPRO.He is aFellow of the Institute of Commercial Management, Fellow of the Chartered ManagementInstitute, Member of the Association of Project Management, Member of the Chartered Institute ofCivil Engineering Surveyors, Member of the Chartered Institute of Arbitration, Member of theAssociation of Project Safety, Member of the Institute of Engineering and Technology,Member of theSociety of Construction Law and is a listed Party Representative by the Association of IndependentConstruction Adjudicators.


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10 Commandments Post Contract