Contract Review Roles

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To understand the various roles and responsibility in contract review it is helpful to consider the three main components of a contract, addressed earlier, and the respective responsibilities. These are the price, scope of work and the legal liabilities or legal framework The respective responsibilities will, generally, be divided between the commercial manager, operations manager and the contracts manager. The commercial manager will deal with the costing and economics, the operations manager with deal with the engineering, methodology, personnel and equipment, the contracts manager will address the review, interpretation of the contract. The general manager manages to the process and applies the profit margin. Contract review is an iterative…show more content…
All sales contracts cannot and should not be treated the same. The sale of a low risk, low value item will not receive the same scrutiny as a high value complex project. Moreover a contracts manager’s workload will fluctuate as a result of peaks in activities. Consequently, time management is a critical aspect of this process. The process usually starts with a review of the documents, which form the ITT, and concludes with a final review of the contract before execution. The contract review process includes review, negotiation and drafting and is, in itself, an iterative process. That is to say, there will, generally, be a number of rounds of communication exchanges before final agreement is reached. ‘Tools’, systems and techniques are available to facilitate contract management. These…show more content…
They fall into two categories: Industry Standard Contracts and an organisations’ Model Contracts. Industry Standard Contracts have been negotiated by representatives from both clients and contractors for use in their respective industries. Examples include BIMCO Supplytime and LOGIC Contracts for the offshore oils & gas industry. Industry Standard Contracts are usually inherently equitable by virtue of the fact that both Clients and Contractors have accepted them. An organizations’ Model Contracts are drafted in such a way as to be favorable to the organisation. Both an industry and a company’s model contract can be used in either an unmodified or modified form. The most effective way to modify a standard contract is by the application of ‘Special Conditions’. The Special conditions amend the terms by adding an Amendment to the document itself rather than modifying the words in the body of the contract itself. The advantage is that it is clear that only the clauses that are intended to be changed are changed and there is no need to check each clause to ensure that no unwelcome changes have been made either inadvertently or intentionally (see ‘Electronic Documents’

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