Preventing Scope Creep With Effective Contract Management Part 1
In today’s competitive construction marketplace, completing projects on time, within budget, and in accordance with the client’s expectations is challenging. Achieving these three goals is what success is all about for many construction companies. However, as Naples contractor lawyers, we know that sometimes projects expand beyond their original intent. This is known as scope creep and can negatively impact a project if it goes unnoticed.
Scope creep can, however, be prevented with effective contract management. This two-part article will discuss preconstruction meetings and scope statements. Read part two to learn about the change order process.
Schedule the Preconstruction Meeting
Whether you are a small contractor, a mid-size contractor, or a large contractor, a preconstruction meeting should be held prior to starting the work to understand a project’s vision. This meeting can help mitigate risks such as cost overruns, safety hazards, payment conflicts, documentation issues, and site security.
These meetings present special project needs and requirements, and open the floor for discussions. The team will have the opportunity to learn about needs, expectations, and performance goals. The size of your company will determine the number of people that need to attend this meeting. For example, a small contractor may only hold a meeting with the owner, estimator, crew leader, and crew members.
Build a Detailed Scope Statement
The biggest mistake a contractor can make is to rush into a contract agreement without clearly defining the scope statement for the project. Creating the scope statement requires stakeholders to meet a number of times to produce a statement that everyone agrees on. The project’s scope needs to be as specific as possible, covering everything from processes, deadlines, deliverables, action items, points of contact, change management, and mediation procedures. Once all has been documented and agreed upon, everyone must sign the document. This will lessen the chance of misrepresentation while the project is in progress.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.