© Contracts & Purchasing Services Pty Ltd
The key to fostering co-operation and maximum productivity in any
contractual relationship is to improve communication. A useful method of ensuring
open communication and improving the dispute prevention process is the use of a
Project Control Group.
The role of the Project Control Group
could be compared to the role of a Board of Directors in that they are not involved
in the day-to-day management of the work but rather set the broad
direction to be implemented by the staff responsible for day to day management and
administration of the contract.
The concept is to bring together on a regular basis management senior to that involved
in the day-to-day operations of the work under the contract. Items for discussion can include:
- Performance perceptions by the different parties
- Reporting of Key Performance Indicators (KPI's)
- General business update and likely forward directions (to increase the other
participants understanding of that parties business needs)
- Explore possibilities for increased productivity
- Potential problems or disputes
Ideally the organization of the Project Control Group should be on the basis of a
revolving Chair with the Chairmanship alternating between each party. An alternative to this
is to combine the concepts of Project Control Groups and
Dispute Resolution Advisers with the appointed Dispute Resolution Adviser chairing
the meetings of the Project Control Group. The following clause could be
included in the Contract.
PROJECT CONTROL GROUP
The Principal intends to encourage the foundation of a cohesive partnership with
the Contractor and its principal Subcontractors. This partnership will be
structured to draw on the strengths of each organization to identify and
achieve reciprocal goals.
The objectives are effective and efficient contract performance and completion of
work on schedule and in accordance with the Contract requirements.
To facilitate this partner initiative the Principal and the Contractor shall meet as
a Project Control Group (PCG) every three (3) months. Persons required to be in
attendance will be the Contractor's Project Manager and the Contractor's senior
corporate manager responsible for the Region. It may be appropriate, on an as
required basis, to have key supervision personnel of both the prime and principal
subcontractors in attendance.
An integral aspect of partnering is the resolution of disputes in a timely,
professional and non-adversarial manner.
The establishment of a partnership charter on a project will not change the legal
relationship of the parties to the contract, nor relieve either party from any of
the terms of the contract.
We can provide a
Dispute Resolution Adviser for your contract to operate either
individually or as a member of the contract's Project Control Group. Our Principal
Consultant, John R
Burke, is a Graded Arbitrator and a Registered
Mediator with the Institute of Arbitrators & Mediators Australia.
CONTRACTS & PURCHASING SERVICES PTY LTD
Mobile: 0417 885 747
email: john@contracts.com.au
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