Is your contract in the bottom drawer or front of mind?

LG Leader December 2019

As we approach Christmas, time pressures in projects (real and arbitrary) become apparent. A project might need to be completed in the calendar year, or before the end of a ‘quiet’ period in January, or someone might just want something off their desk before they go on holidays.

The program for the project may even have these deadlines built into it. However, before you try to enforce those deadlines, you may need to consider whether or not you have managed the contract consistently to allow you to do so.

Unfortunately, I often see clients and contractors who take a ‘bottom drawer’ approach to contract management. Once the contract is signed, they get on with delivering it with little or no reference to the contract. In many instances this will mean that the project is completed on time and on budget. However, if there are any problems with the project, whether in terms of timeframes, quality or variations, this approach can make it difficult to enforce contractual obligations.

It’s important, before you seek to enforce contractual obligations, that you ensure that you have complied with the contract yourself. This could involve proper documentation, meeting attendances or instructions being up-to-date in accordance with the contract. If your own house isn’t in order, it may be difficult to require your counter party to have theirs in ship-shape.

Of course, if you are managing your contracts as they should be in all of your arrangements, these risks are very much minimised.

If you would like any assistance in relation to the management of your contracts or an assessment of your contractual position, please contact us on 08 8113 7110.