Project management began in its early form in the late 19th century, driven by large scale government projects. After WW2 specific techniques emerged for planning and managing huge budgets and workforce. With the advent of computers the project management tools became easier to use, more suitable for smaller (although still large) projects and different disciplines. In the modern times, project management is widely used on projects of all sizes and complexity.
Despite such long tradition, even nowadays many projects do not meet their required performance standards or are delivered late / over budget.
In a recent seminar, a Cheltenham-based firm of solicitors addressed the typical contractual pitfalls to watch out for within project management in our industry.
High on the list of potential culprits were Letters of Intent. Whether binding or non-binding, Letters of Intent must be drafted carefully in terms of what the parties want to achieve by using them. Ultimately their objective is to first achieve agreement on what needs to be done, and start work later. This prevents many issues from arising at a later stage.
Also of great importance is having the right procurement strategy, because each project is different and it is critical to balance out risks against project objectives, by assessing what the drivers are for both.
Other important points to consider are financing (getting the bank on board early, before contracts/appointments have been agreed) and conflicting T&Cs of the parties involved (resolve any conflicts early on and not just assume that one set of T&Cs will override another, because there is no automatic hierarchy).
Ultimately, by raising the standards of project management within the construction industry and more specifically improving the skills of project managers, all parties can enjoy a smoother process and better results. Please contact us if you have any queries about the Project Management work we undertake here at Nick Bevan Consulting.
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