The contract management process in construction involves several key phases, each with specific goals which are mentioned as follows:
Pre-Contract Preparation:
This initial phase lays the groundwork for the project by assessing the scope, feasibility, and specific needs. This includes estimating preliminary budgets and conducting feasibility studies.
RFP and Bid Evaluation:
Involves creating and distributing a Request for Proposals (RFP) to attract qualified contractors, then evaluating the bids based on predetermined criteria to select a winning bid.
Contract Drafting and Awarding:
This phase focuses on creating and finalizing the contract, negotiating terms, conditions, timelines, and payment schedules, and officially awarding the contract to the chosen contractor.
Project Initiation:
Marks the formal beginning of construction work, typically involving a kick-off meeting with all key stakeholders to ensure everyone understands the contract’s terms, milestones, and deadlines.
Project Execution and Monitoring:
The actual construction work takes place, with close tracking of progress, quality, and compliance with regulations. Adjustments are made as needed to stay on course.
Financial and Change Management:
Deals with the project’s financial aspects and any changes in scope, including monitoring budgets, approving payments, and managing modifications to the original contract terms.
Project Closure and Review:
The final stage upon completion of the construction project, involves issuing completion certificates, making final payments, and evaluating the project’s success, documenting lessons learned for future reference.