Construction project managers are universally familiar with managing the various contract documents that dictate workflow on a given assignment. Although it may seem trite, it is often the case that editing contracts can help to reduce production costs. The fundamental function of contract editing is to clarify the obligations of each contract party, and in this sense, there are few limits to the usefulness of a well-written contract.
While it has always been true that clarity helps to prevent misunderstandings, in the age of advanced construction machinery and material handling equipment, this principle takes on a new level of meaning. Failure to effectively edit contract documents can lead to mishandling of equipment or unused equipment, which can serve to increase the cost of a project.
Unambiguous contracts are also critical to keeping a construction project on schedule. With precise contract editing, every supplier knows whether his or her product is scheduled for delivery on a specific date, whether the contracted materials are to be stored on-site, and whether the supplier must retain storage space until the materials or equipment is ready to use.
Not only does contract editing result in more specific deadlines, but it also allows for safer use of machinery and equipment. In the event that safety issues arise on a project, it is incumbent upon the parties to manage the situation. As such, clear and specific contracts can facilitate risk management. More specifically, specific contracts can provide for premeditated contingencies and workarounds to necessary delays in the completion of a project.
One useful contingency worth mentioning generally concerns communications among the parties to the contract. In an ideal situation, administrative errors will be minimal or nonexistent, but it is not uncommon for such errors to occur. In fact, administrative errors in necessary document transmissions can create costly delays.
Even if full administrative protocol is observed, it can make later communications between the parties themselves more difficult. It follows that contract provisions specifically addressing communication protocols can prove invaluable.
A less obvious benefit of contract provisions is that they can also allow for effective troubleshooting in the event an unexpected problem arises. For example, if improper installation of a new piece of equipment results in damage to surrounding machinery, and this damage brings the project to a halt, there are very few recourses unless the contract itself stipulates the necessary procedures.
As is the case in many types of contracts, precision is crucial in machinery contracts. Terms like “hand tight,” “rough grade,” or “natural grade” are often misinterpreted because these terms lack sufficient context. Because contractors are responsible for damage to equipment while it is in their possession, a clear definition of how grade is defined is vital.
As a potential customer, you can benefit not only from contract administration, but also from contract editing. When contract editing is given thorough consideration, it can avoid delays and additional expenses that could impede the project. In the case of multiple contract parties, this is particularly critical to avoiding misunderstandings. At the heart of contract editing is the increased potential for cooperation and communication between the parties.
More efficient contract administration is thus a hallmark feature of projects where contract editing is specifically requested. Async or generic contracts-those that do not take contract specifics into account-are often suboptimal for project management, and this is especially true to the field of construction. Somewhat surprisingly, even small discrepancies can contribute to inefficiencies.