ABSTRACT
The construction industry is relatively unique among commercial endeavours where the ‘output is sold before it is made’. Construction contract management is a complex task involving the communication and coordination of the skills and efforts of a number of agencies along with managerial staff, labour, material resources and equipment and executing the contract with minimum financial and operational risks. Preparing a contract document for a large project involves sufficient investigation of the project to include all aspects that influence its design, minimising uncertainties that may occur at the time of execution, studying possible technical alternatives and working out detailed designs, construction drawings and estimates. The appropriate management of a contract entails the interpretation of each clause in agreement with others for efficient and timely implementation of the work. This chapter presents the contract and its various aspects; contracts on the basis of validity, formation and performance; contract delivery methods; special purpose vehicles; role of the employer, contractor, architect and engineer in contract management; management of contracts; factors to be controlled in contract administration; contractors’ reporting to the employer; and contract closure.
