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Project Strategy 

“By investing time and effort into pre-contract strategy, construction projects can mitigate risks, optimise resources, enhance project outcomes, and establish a solid foundation for successful project delivery. It allows for better planning, control, and collaboration among stakeholders, leading to improved project performance and client satisfaction..”

Pre-Contract Considerations

What to focus on?

When it comes to pre-contract mitigation, there are several critical items that should be addressed to minimise risks and ensure a smooth project execution. Here are some of the key considerations:

  1. Clearly Defined Scope of Work: Clearly define the scope of work in the contract documents to avoid any ambiguity or misinterpretation. A well-defined scope helps in minimising potential disputes or claims.

  2. Project Specifications and Standards: Specify the required quality standards, materials, and construction methods to ensure that the project meets the desired level of quality. This helps in reducing the risk of substandard work or non-compliance.

  3. Risk Allocation and Insurance: Clearly identify and allocate risks among the involved parties, including the contractor, subcontractors, and the client. This involves determining who will be responsible for potential damages, delays, or unforeseen events. Adequate insurance coverage should also be in place to mitigate potential liabilities.

  4. Contractual Terms and Conditions: Ensure that the contract terms and conditions are fair, comprehensive, and properly understood by all parties involved. This includes clauses related to payment terms, dispute resolution mechanisms, change orders, delays, and termination provisions.

  5. Pricing and Payment Mechanisms: Establish a clear and mutually agreed-upon pricing structure, payment schedule, and mechanisms for handling variations or additional work. This helps in preventing disputes related to payment and ensures transparency throughout the project.

  6. Performance and Liquidated Damages: Clearly define performance expectations, milestones, and associated liquidated damages or penalties for delays or non-performance. This encourages timely completion and holds the parties accountable for meeting their obligations.

  7. Permits, Approvals, and Regulatory Compliance: Ensure that all necessary permits, approvals, and regulatory requirements are identified, obtained, and complied with before commencing the construction work. Failure to comply with legal and regulatory obligations can lead to costly delays, fines, or legal complications.

  8. Dispute Resolution Mechanisms: Include provisions for alternative dispute resolution mechanisms, such as mediation or arbitration, to handle potential conflicts efficiently and avoid lengthy litigation processes.

  9. Change Management Process: Establish a systematic process for managing changes to the project, including change orders, variations, and modifications. This helps in addressing changes effectively while maintaining project control and avoiding disputes.

  10. Document Control and Record-Keeping: Implement a robust document control system to track and manage project-related documentation, including contracts, drawings, specifications, and correspondence. Proper record-keeping ensures clarity, accountability, and easy access to project information when needed.


These critical items aim to establish clear expectations, minimise potential risks, and provide a solid foundation for successful project delivery. It is essential to engage legal professionals to review and draft appropriate contract documents tailored to the specific project and jurisdiction.

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