ABSTRACT
This chapter deals with three principal aspects of contracts as they are likely to affect the project manager, terms and conditions of payment, contract variations, contract administration. Many professional institutions publish their own recommended standard forms of contract that are used commonly throughout a particular industry, such as construction, chemical engineering or electrical power projects. In construction contracts based on payment by quantities, independent quantity surveyors can act for the customer by certifying the contractors' claims to verify that the work being billed has in fact been done. Payments for day works or casual work using temporary agency staff may be invoiced at weekly intervals but most contractors will invoice their customers at regular calendar monthly intervals, timesheets or other cost records that can be subjected to independent audit. Cash flow management can make or break a company, and is so important that we have devoted to the subject.
