Contract Strategy

As covered in the project strategy, the following would be major considerations when developing a contract strategy for the project:

• When and how will the work be divided up?

■ How will the division of work affect client/project team/main contractorl vendorlsubcontractor interfaces? (This division enables the project coor-

dination procedures to be properly prepared.)

What type of contract should be used? Segment the project into discrete work packages to facilitate management, and subject the work packages to available resources. Consider the contract philosophy, the type of contract best suited to the project, contract interfaces, bid evaluation techniques. and bid documentation. This enables the contract strategy to be produced in liaison with the contracts department.

What roles are licensors and consultants expected to play? This allows arrangements to be made for prequalifying suitable contractors, issuing invitations to bid, evaluating bids, and making award recommendations.

Are there potential conflicts of interest with other owner projects in contractors' offices, in vendors' workshops, or within fabrication yards? Such conflicts can have an impact on the bidder's list.

What is the availability of skilled labor? What is the industrial relations climate local to fabrication yards and local to the construction site? Lack of labor can delete a contracror from the bidder's list.

What is the quality and availability of personnel to develop, evaluate, and administer the required type of contract/contract conditions?

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