Last edited 24 Sep 2020

Pre-contract management

In the construction industry, contract management is the process of managing contracts that are made as part of the delivery of a built asset. It involves the creation, analysis and execution of contracts by the parties to those contracts to ensure operational and financial performance is maximised, and risks are minimised.

Contract management can categorised into three phases:

Pre-contract phase.
Contract execution phase.
Post-award phase.

The pre-contract phase is the preparation stage. This is when ideas start to form about the project and it is described in theoretical terms. It is also when intentions are solidified and relationships begin to take shape.

Although each scenario may be different, these are some of the typical steps that may be included in the pre-contract stage.

Survey phase. This is when the project team starts to collect survey information for the project. It may include contributions and basic options from all consultants regarding the feasibility of the project. This information can start to form a design brief around ideas provided by the client.
Outline phase. At this point, the project team creates a concept based on the design brief requirements and provides an outline that includes input from relevant parties and authorities.
Scheme design. This phase is when the project team shapes the agreed upon idea into a working proposition including approvals from applicable authorities.
Detail design. During this phase, the project team has fully developed the idea for the project, including specialist design work for structures, electrical, plumbing and HVAC installations and other required services that will be provided by sub-contractors..
Construction information. At this point, the project team prepares detailed working drawings and specifications that define all aspects of the project.
Measurement. The project team will prepare the bill of quantities including measurements for materials and estimates of labour costs for the project.
Tendering. This is when tender documents are prepared, tenders are sought from selected contractors and contract negotiation is undertaken.

Once these phases are complete, there is an analysis of tenders that ideally concludes with the client awarding the project to the successful contractor based on the approved design, strategy and documentation.