Standard forms of contract such as FIDIC® and NEC®3 or NEC®4, in general, provide mechanisms for interim payment application and payment, measurement (where applicable), change control and variations to works, and final accounts.
These mechanisms are designed to be clear and logical, and to determine what needs to be done, by whom and by when, along with a process of what happens when something is not done.
For effective commercial and cost management:
- Be knowledgeable on the form of contract and the processes relevant to cost and develop contract compliant processes and procedures to capture your internal actions for the what, when, how, and by whom.
- Co-ordinate the processes and procedures for commercial and cost activity with contract administration and the claims management systems.
- Use personnel with a proven capability and specialism in the specific form of contract, and who have experience and competence in dealing with issues and claims.