Commercial Construction Contracts Management and Administration

About this course
The purpose of this course is to provide an overview of the Commercial Construction Contract Management Process and a transaction based management framework.

By the end of this training course the learner will be able to:

  • Identify the Contract Management Process and sub processes in a Commercial Construction  Contracting Context from both the Employer’s and the Seller’s viewpoints
  • Apply the Commercial Constriction Contract Process to build trust, manage expectations and build lasting Employer’s-Seller’s partnerships
  • Have an overview of South African Construction Contract Law and Construction Contracts such as FIDIC, NEC3, JBCC & GCC contracts to better understand construction contracting
  • Understand the pre-Award phase of the Commercial Construction Contract Process and the three major steps taken by the Employer, Contractor and Consultants in this phase
  • Understand the main elements of Commercial Construction Pricing
  • Understand the Award phase of the Commercial Construction Contract Process and an outline of Commercial Construction Contract Negotiations

Understand the Post-Award Phase of the Commercial Constriction Contract Process and an understanding of Commercial Constriction Contract Administration and Closeout procedures

Course Outline
Topics in this course include but are not limtied to

1  Understanding Commercial Construction Process, Contracts, their Management and Administration

  • What is Commercial Construction Contract Management?
  • Application of Commercial Construction Contract Management
  • The Commercial Construction Contract Management Process
  • The Commercial Construction Risk Management Process
  • Assessing Risk
  • Handling Risk
  • Commercial Construction Contracts—sources of business
  • The Employer’s and Contractor’s and Consultant’s perspectives
  • Construction Contract requirements
  • Construction Contract estimating    
  • Commercial Construction Pre-contract issues
  • Performance and other commercial guarantees
  • The Six Steps of Commercial Construction Contract Management

2  How Commercial Construction Contract Management Creates Successful Business Partnerships

  • Why should Commercial Construction Contract Management be of interest to Employers and Contractors and Consultants
  • Increasing Buying and Selling Power    
  • Changing Buying and Selling Processes
  • Integrating with the Supply Chain
  • Learning and Applying Industry Best Practices
  • Building trust by Managing Expectations and Honouring Commitments
  • Trust Building Checklist
  • Building Lasting Partnerships

4  Guide to South African Commercial Construction Contract Law

  • The Nature of a Contract
  • Standard Templates for Commercial Construction Contracts FIDIC NEC3 JBCC & GCC
  • The Formation of Contracts
  • Offer and Acceptance & the Tender Processes
    • Offer
    • Acceptance
    • Where and when is the contract concluded?
  • Failure to Agree – Vagueness, Mistake and Misrepresentation and Coercions    
    • Meaning of ‘mistake’
    • Misrepresentation
    • Undue Influence
    • Duress
  • Further Requirements of a Valid Contract
    • Capacity to act
    • Possible Performance
    • Lawful
    • Possible
    • Compliance with Formalities
  • Parties & main role-players in Commercial Construction Contracts
  • Terms and Provisions of Commercial Construction Contracts (with analysed examples from FIDIC NEC3 JBCC & GCC Contracts
  • Breach of Contract
    • Negative malperformance
    • Positive malperformance
    • Anticipatory breach
    • Consequences of breach of contract, Terminations under FIDIC NEC3 JBCC & GCC
    • Conventional Penalties Act and Delay Damages

5  Pre-Contract Considerations: The Pre-Award Phase

  • Commercial Construction Contract Risk Management
  • The Employer’s  View of Contract Management
    • Employer’s Step 1 – Procurement Planning
    • Employer’s Step 2 – Solicitation Planning
    • Employer’s Step 3 – Solicitation
  • Participation from the Seller’s Perspective
    • Seller’s Strep 1 – Presales Activity
    • Seller’s Step 2 – Bid/No-Bid Decision Making
    • Seller’s Step 3 – Bid or Proposal Preparation

6  Commercial Construction Contract Pricing and Risk

  • Pricing Arrangements under FIDIC (Red Book, Yellow and Silver Books) NEC3 Main Pricing Options A-F, and Pricing under JBCC & GCC Contracts
  • Assessing Requirements to Determine Costs
  • Developing Pricing Arrangements
  • Contract Incentives
  • Incentive Contracts

7  Concluding the Commercial Construction Contract - The Award Phase

  • The Employer’s Award Processes
    • Employer’s Step 4 – Source Selection
    • Evaluation Criteria
    • Evaluation Standards
  • The Seller’s Award Processes
    • Seller’s’ Step 4 – Construction Contract Negotiations and formation

8  Concluding Commercial Construction Contracts by Negotiation

  • The Commercial Construction Contract Negotiation Process
  • Planning the Negotiation
  • Conducting the Negotiation
  • Documenting the Negotiation and Forming the Commercial Construction Contract
  • Employer’s (Source Selection)
  • Employer’s and Seller’s (Contract Negotiation and Formation)

9  Commercial Construction Contracts Contract Administration

  • Post-Award Phase
  • What is Contract Administration?
  • Employer’s and Seller’s Step 5: Contract Administration
  • Communications under FIDIC NEC3 JBCC & GCC
  • Claims and Quotes, Notification, and format under FIDIC NEC3 JBCC & GCC Contracts

10  Commercial Construction Contact Closeout and Termination

  • Employer’s and Seller’s Step 6: Contract Closeout or Termination
  • Termination Types: Termination on Completion, On Breach and for Convenience (FIDIC)
  • Best Practices: 30 Administrative Actions to Improve Results