19d • General discussion
Construction Contracts - Explained
My philosophy with contracts is that contracts are rulebooks and contract management is a game.
There are two stages to this:
- Defining the rules - contract negotiation
- Playing by the rules - contract administration
Basically, you try to set the rules that best suit your goals and then follow them.
Every contract has a buyer and a seller. The buyer is the one paying for something to get done. The seller is the one providing the service.
On any project, you will be both the buyer and seller. Your upstream contract (head-contract), you are the seller. You are providing a service and getting paid. Downstream (sub-contract), you are the buyer. You are paying for somebody to do something.
This gives four areas of contract management (two phases, two roles):
- Upstream contract formation - Tendering/Bidding
- Downstream contract formation - procurement
- Upstream contract administration
- Downstream contract administration
This video dives deeper and does my best to explain construction contract management in 10 minutes
8
0 comments
Construction Contracts - Explained
skool.com/construction-contractors
For construction contractors and project managers.
Estimating, scheduling, contracts, AI and practical systems to grow a contracting business.
Leaderboard (30-day)
1
+20
2
+19
3
+13
4
+12
5
+12
Powered by