Welcome to the fourth episode of Property Done Properly, an educational and entertainment podcast in Real Estate, Construction and Facilities management covering the whole life cycle of a project from inception to realisation.

Ian continues his coverage of his five pillars with the third, commercial. Included in this subject are contract strategy, project economics, risk management, forms of contract, types of contract, understanding the market place, procurement and finance and funding.

KEY TAKEAWAYS

• Contract Strategy asks have the contract documents and conditions been thoroughly reviewed? Is it clear and unambiguous? Has the contract been explained and understood by all the relevant management levels involved?  
• Project Economics covers the analysis of the contract for initial cost estimation. Is all the necessary information in the contract to facilitate costing?
• Risk Management must be centralised by all parties involved in the contract. Risk is different for all involved but its important that all risk is included and all have carried out a risk assessment.
• The different forms of contract are numerous and balance the requirements of different project types in different countries reflecting differing interests, liabilities, payment requirements and standards.
• Types of contract can be based on a lump sum payment for completion of the project or allow for inflation or changes of circumstances on project. 
• The current marketplace must be understood to gain some sort of foresight of upcoming economic changes or individual material price increases or decreases.
• Procurement, finance and funding is secured by all those involved having robust budgets for purchase and planning in place for where and when materials will need to be purchased. A solid contingency budget guards against potential cost rises. 

BEST MOMENTS

‘Have key people on the project been trained on the strategy in initial stages? This will probably be the Project Director, Project Manager and the estimating and quantity surveying team.'

‘I know, for instance, in the UK that in economic downturns and recessions in the construction industry the bigger contractors on the bigger projects will assess the documentation for all the pitfalls and when potential conflicts and issues come out then they'll allow for that and take that off that price to make themselves more competitive in the marketplace.'

‘So all of these risks have to be assembled at various levels to make sure they sit together so the contract doesn't get at risk and overburdened.'

‘So even if the contract is smaller value but highly complex I would suggest that the standard building form of contract still needs to be used.'

‘At the moment we've got a lot of issues with containerised deliveries because containers have shot up in cost due to a number of ships laid off because of various different demand patterns.' 

‘So everybody needs to make sure they have robust budgets on place from the get-go and all the costs that have been incurred actively monitored and tracked against budget.'

VALUABLE RESOURCES

https://www.ianjrogers.com/

ABOUT THE HOST

Ian Rogers is an entrepreneur running businesses in the Real Estate, Construction and Facilities Management arena. Ian has over 40 years' industry experience, as he was effectively born into construction with his father having his own building company and Ian spending time working on sites from the age of 11!. As a result Ian has seen the industry from a trades person perspective, as a chartered quantity surveyor working on large commercial projects, as a project manager and then working on structured project finance through PFI/PPP deals. This has given Ian a unique whole life approach to any project by considering the end game at the beginning.

CONTACT METHOD

 https://www.ianjrogers.com/

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