episode 28 : project management contract

Download Episode 28 :  Project Management Contract

Post on 15-Feb-2017




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SAJJAD KHUDHUR ABBASCeo , Founder & Head of SHacademyChemical Engineering , Al-Muthanna University, IraqOil & Gas Safety and Health Professional OSHACADEMYTrainer of Trainers (TOT) - Canadian Center of Human Development Episode 28 : Project Management Contract

most important document for the execution of a project.project management - know very well, includes all important issues regarding supply and servicesFulfillment of requirements, review the contractual situation, to claim the respective extra costsproject engineers :mastered the fundamental aspects of the contractual arrangements for negotiated with subcontractordepends on the relevant information of the team members.actual contract arrangement - trained and experienced traders and lawyersFdration Internationale des Ing -nieurs - Conseils (FIDIC)take equally into account the interests of Conditions of Contract for Works of Civil Engineering and Construction Conditions of Contract for Electrical an Mechanical Worksjus strictum (binding law) and jus dispositivum (modifiable law).2

contractual terms defined in detailed schedule to avoid disputes2 parties involved:Employer called customer by the plant manufacturer, is usually future plant operatorEngineer appointed employee chosen by employer (customer) to show interest towards contractorContractor plant manufacturer; project manager as a representative

COMPANY ABC:Referred as an employer

COMPANY XYZ:Referred as contractor3

Typical wording:Excluding the delivery conditions of the contractor, the following documents will apply to the present contract exclusively in the following order:The terms and conditions of this contract, its appendices and its possible amendments.The General Terms and Conditions of the employer The quotation of the contractor from 11/11/2002General terms and conditions of the plant manufacturer are excluded for the time being-at this point legal matters with probably far - reaching consequences are frequently addressedThe wording apply exclusively in the following order determines the hierarchy of the documents.4

It is difficult for the contractor to fulfill all the requirements of such a listing contradictions within the listed requirements are possibleFor safety, the employer can insert the following contract clause:

In case of contradictions in this contract or contradictions between this order and the provisions mentioned above, the more extensive provision shall prevail.5

To prevent the contractor s deployment of inadequately qualified and constantly fluctuating staff:

Employer:Provide an organization chart:-denominating all responsible employees involved in the projectReserves the right to reject the appointment of the project manager:- based on good cause

have relevant experience and the respective qualifications

Person/ Employee:

has to appoint a project manager who will be entrusted with the coordination until the complete fulfillment of the orderIf the contractor intends to make changes in staff :- shall be coordinated with the employer


an individual or a business that signs a contract to perform part or all of the obligations of another's contractPlant manufacturer responsible for the fulfillment of thetechnical requirements of the project:claim extra costsreject the warranty for the respective componentsOperator only has the possibility to limit the selectionIn practice:Operators may reserve rights to participate in technical part of contract negotiation with sub-suppliersIf demand going beyond specification, project engineerhas to point out this fact and communicate to project management respective supplementary offer can be prepared7

Precisely defined

Additional demand and stipulations: Contractorsprepares minutes of all meetings with the employer.prepares copies of all technical correspondence as well as of the technical part of the minutes of meetings with his subcontractors.provides a monthly progress report.employer will be provided monthly with the updated project schedule.GOOD CONTRACTSClearly stipulated


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