Contract structure & contracting strategy
Before award: which form of contract, how the packages are cut, how risk is allocated. Deciding this deliberately means less negotiation later – many variations are already built into the contract.
Contract management that prevents conflicts. Claims management when they arise anyway.
A project contract is drawn up under time pressure, with many parties and different interests. Managed well, it is the instrument with which you control deviations instead of suffering them.
A legally sound contract is not yet a working basis. The project team needs to know what it means day to day: who may instruct what, which deadlines are running, what has to be notified and how. That is why our work starts before award with the contract structure and continues at contract start – with a workshop for everyone involved and a register that translates the contract into the language of the project. During the project we manage it: deadlines in view, changes assessed and prepared for instruction, deviations detected early.
A variation is not a dispute. It is the response the contract provides for a change.
Preventive and executive – who is responsible when
If a deviation occurs anyway, claims management builds on this: we review the contractor's claims for entitlement and amount, determine your own claims and demonstrate their schedule impact. ep-cm is owner-managed and does not belong to any group with executing trades – in every contractual question we represent only one side: yours.
The schedule impact of an obstruction
The basis for this comes from the other disciplines of project control: version-controlled documentation from Document Control, the assessed impact on cost from Cost Control and the baseline against which the impact on the schedule is calculated from Project Scheduling. In a shutdown, the daily records from Execution Coordination are added.
Six building blocks across the full span of the contract – from the structure before award to the claim that is already on the table.
Before award: which form of contract, how the packages are cut, how risk is allocated. Deciding this deliberately means less negotiation later – many variations are already built into the contract.
A kick-off workshop with everyone involved translates the contract into the day-to-day reality of the project: obligations of both parties, deadlines, notification duties and authority to instruct are kept in a register that the project team knows and uses.
Deadlines are monitored, deviations from the agreed scope of work spotted early – in both directions. That keeps the contract a management tool, rather than something opened again only when a dispute arises.
Every change is assessed before it is carried out and instructed only by those authorised to do so. A verbal promise in the plant is a common origin of a later claim.
Disruptions, changes and hindrances are recorded daily – with cause, effect, and impact on schedule and cost. This includes the operator's own duties to cooperate: site access, approvals, plant handover. These are exactly what most claims against the operator arise from.
When a variation claim arrives, we review its basis and amount against the contract and the chain of causation: what is justified gets paid, what does not stand up is rejected on the facts. If you have an entitlement arising from delay, underperformance or defects, we quantify it and demonstrate the schedule impact.
Four steps – the first three decide how often the fourth is needed at all.
We help choose the contract structure that fits the project: form of contract, cut of the packages, risk allocation, deadlines and notification duties. What is settled here does not have to be negotiated later.
In the kick-off workshop, everyone involved gets to know the contract they will be working with from now on: who may instruct what, which deadlines apply, what is notified and how. The contract register comes out of this.
The contract is managed, not just administered: deadlines in view, changes assessed and prepared for instruction, disruptions recorded as they happen. That is what makes the difference later.
When a claim comes in, we review its basis and amount. If you have a claim of your own, we determine it methodically and demonstrate the schedule impact. If it escalates, we provide the facts on which your law firm and experts build.
Both. One prevents, the other executes – and both belong in one pair of hands.
A reliable body of facts does not arise in a conflict, but from the project control disciplines that accompany the project anyway.
Document control that holds up in an audit and in a claim.
More on Document ControlCost tracking, forecasting and variance management across the entire project.
More on Cost ControlPlanning and scheduling for capital projects, from the idea to commissioning.
More on Project SchedulingWe support contracts and variations in these industries:
Contract management is preventive: before award, it sharpens the definition of the required work, allocates risks deliberately and, during the project, ensures that deadlines, obligations and authorities are known and observed. Claims management builds on this and is needed once a deviation has occurred: reviewing claims, determining and substantiating your own entitlements. The two belong together – if you only do the second, you are working without a foundation.
No, and that is expressly not our role: we do not provide legal advice. We manage the contract within the project, secure the facts as the project progresses, review the circumstances, cause and amount of a claim from a technical and commercial perspective and demonstrate the schedule impact. Your law firm handles the legal assessment and representation – building on complete documentation. At best, good preparation makes the dispute unnecessary.
Yes, and that is the most effective point. Before award, it is decided which form of contract applies, how the packages are split and who bears which risk. If you answer these questions deliberately, you will have to negotiate far less later – a large share of variations in projects do not arise on site but were already built into the contract.
Everything the project team needs from the contract day to day: the obligations of both parties, deadlines and notification duties, who is allowed to instruct what, guarantees and warranty periods, every change with its status. A contract that only the legal department knows does not steer a project. The register turns it into a working basis – in language that is understood in the plant as well.
Yes, that is one of the main reasons we are called in. We review every variation claim for its basis and amount: what is contractually justified, we recommend for payment – what does not hold up, we reject with evidence and on the facts. Both happen in a cooperative tone: the contractor often continues working in your plant for months.
Not if it is practised the way it is meant to be. A variation is not an accusation but the response to a change that the contract provides for. If you review claims objectively, pay justified ones promptly and reject unjustified ones with evidence, you are predictable for the contractor – and predictability is the basis of any cooperation that lasts longer than one project. That is why everyone on your side speaks with one voice: the same rules, the same responsibilities, regardless of who happens to be at the table.
With recognised delay analysis methods, such as time impact analysis or a comparison of as-planned vs. as-built. Which method fits depends on the contract, the available data and the point in time of the assessment. Each of them requires a reliable baseline schedule and clean progress recording.
Yes. In a turnaround, the evidence is in fact especially fleeting: a shutdown lasts weeks, decisions are made from shift to shift, and afterwards the people involved are scattered again. Anyone who only starts documenting after start-up has already lost most of the facts.
We charge by the hour, by day rates or at a fixed price – we work out together which model fits. Ongoing contract management costs considerably less than reconstructing a disputed claim after the event – not least because nothing has to be reconstructed. For a first indication, the type of contract and the scope of the project are enough for us. The initial call is free of charge and confidential.
Terms such as claim / variation and contract management are explained in our glossary – along with 57 other terms from the turnaround and project business.
Get in touch – we will tell you what your contract covers today, what it leaves open and what of it can already be proven. The initial call is free of charge.
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