Most projects in the construction industry use a Contract as the basis for the scope. In addition, the Contract rules the relationships between the Contractor and the Client. As any tool, a Contract can be used both in a productive and a negative way. In Project Value Delivery’s experience, Contracts are too often used in a way that impedes project success. It is mainly because changing any provision of the Contract induces fear in organizations. In our new White Paper “Unleash Significant Project Value by Overcoming the Contractual Scare” [2012-20] we uncover why and how to overcome the contractual scare.
Overcome the contractual scare and get into real business relationships
When unexpected events happen (which always occurs in a Large, Complex Project), most of the times, both parties behave as if they wanted to use the Contract so to take the maximum advantage of its clauses, barring cooperation in the face of difficult problems. This results in more or less overt confrontational situations which suck the energy out of the project teams and prevents a smooth execution of the project.
Most of the times, behaviors in contractual discussions fall back in the fear of participants to appear weak in the face of their organizations, or even the fear of giving the impression to transgress integrity principles by being too kind to the other party.
Being successful and overcoming the Contractual Scare all boils down to giving enough authority to the project managers (the parties’ representatives). There is only one remedy: make the parties’ representatives effectively accountable for the success of the project, and give them the authority to decide what it takes within a clear framework.
Overcome the contract scare, be entrepreneurial, give authority to where it belongs to increase the success of your large, complex projects.
Read our new White Paper “Unleash Significant Project Value by Overcoming the Contractual Scare” [2012-20].
