In a recent survey of the construction industry, where Project Managers and Contracts Managers were asked what their biggest challenges were in dealing with contracts, an overwhelming 32% said that ‘Extensions of time, delays and disruptions’ was the most difficult of them all. 

Given a choice eight common challenges, most respondents selected ‘Extensions of time, delays and disruptions’ and ‘Variations to scope of works and services’ as being the two biggest causes of difficulty in their daily work.

Kite Conferences ran the survey from April – July 2010 and respondents varied in perspective from the Principal Contractor to Head Contracts to Project Management Consultants (e.g. engineering or architecture).

Other challenges included:

• Risk mitigation and insurance clauses
• Claims outside the contract
• Selecting a ‘hybrid’ project delivery method
• Determining liquidated damages
• Alternative dispute resolution methods
• Construction JV agreements

Respondents explained that validating an entitlement for extension for time, especially when it is after the fact is particularly difficult.

For the full report, please subscribe here (www.kiteservices.com.au/2010cmsurveyreport.html) to receive your copy.

The 5^thannual Contract Management Masterclass will be held this year in Brisbane (7 Sep), Melbourne (9 Sep) and Sydney (14 Sep). For detailed information about this year’s Masterclass, visit http://www.kiteservices.com.au/contractmanagement.html.

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Shuba Paheerathan