From the commencement to the handing-over, ARCHWAY helps to the
contractors and subcontractors in the process of commercial management by providing
appropriate and necessary guidance to maintain and enhance profit margins. ARCHWAY will lead
your
team to achieve this by providing proper advice in respect of reviewing contracts, appraisal
of tenders, submission of applications for payments and proposals for variations including
PS and PC rate adjustments, and by providing direction on the best courses of action for
timely and adequate reservation of rights.
ARCHWAY can extend our support to your team on full-time, part-time or project basis as and
when
needed by means of assigning Quantity Surveyors, Contract Engineers and Commercial Managers.
If you do not intend to deploy a designated resource, but are willing to develop your own
team for the company, ARCHWAY can provide you with ad-hoc support as well. For instance,
this
might mean designing and establishing an adequate commercial management system for your
company by means of standardization of procedures and training of your staff.
It is not unreasonable to say that today the construction contracts increasingly
contain piles of hidden
risks than ever before since the intention of the parties higher up the supply chain is to
pass the maximum risk downstream. It has become apparent that the contractors and
subcontractors enter into contracts without
identifying the true extent of the obligations and liabilities that are not easily
ostensible at the
outset ultimately resulting in commercial distress on the projects and on the companies
eventually. Identifying the incompatibility between the contractual terms and the pr
provisions of the prevailing law is another common ground for disputes.
Therefore, a realistic contract review of contracts and appraisal of tenders necessitates
expert knowledge of
technical, contractual, commercial and legal facets.
ARCHWAY provides comprehensive appraisals of tenders at the tendering stage and exhaustive
reviews of contract before signing.
ARCHWAY’s consultants ascertain the risks using their expert knowledge in terms of
contractual and legal disciplines.
Such comprehensive analysis is capable of making the contractors and the subcontractors
aware of the financial pitfalls
during the post contract stage and will help to reduce or avoid such risks prior to signing
of contracts.
In order to save time for repetitive tasks and to improve the quality, accuracy and
consistency,
ARCHWAY develops standards forms and formats for stakeholder organizations.
For example, Archway can develop formats as per the requirements of the company or the
project for cost
controlling and cost reporting process (CVR and forecasts), which is one of the essential
components in
commercial management process. This will be beneficial in two ways for company – convenient
and up-to-date
monitoring of any cost overruns and informed decision making due to comprehensive reporting.
ARCHWAY can draft terms to be used by contractors, subcontractors and suppliers (order
letters, joint venture
agreements and consortium agreements) to cater to exact requirements. ARCHWAY can assist
your company either by
drafting bespoke contract documents or by selecting the most suitable standard forms of
contract. ARCHWAY will
make sure that the risks are properly apportioned between the parties who are best
positioned to handle
them.
A precise and comprehensive submission always enhances the mutual trust between the parties.
ARCHWAY can
develop for you the checklists and formats for submission of precise and comprehensive
notices, claims
(detailed particulars) and variations. This would be useful to reserve the full
entitlements, avoid
under-recoveries and to enhance the mutual trust between the parties
Many construction companies often fail to recover their full entitlement for
variations, PC / PS
items and payments. As a result of lack of understanding about contractual and commercial
terms, many
construction companies are unable to devise the best strategies for presenting for
variations and
adjustments of PS and PC. Noticeably, many companies who are particularly at the lower end
of the supply
chain, do not produce the payment applications up to the required standards with necessary
substantiation.
This results in late payments and under-recovery of the actual entitlements causing negative
cash flows, ultimately
triggering disputes between the parties.
ARCHWAY can provide you with the consultative support for your payment applications (interim
statements /
statement at completion / final statement) and variations, PS and PC price proposals to
ensure that your
submissions represent the complete contractual entitlement.
ARCHWAY can advise you on the best courses of action in case of an inaction / delay / failure / negligence / breach of contract by the other party. Also, ARCHWAY can advise you on the most suitable procedures upon occurrence of a disagreement/dispute with the other party. ARCHWAY's consultants who possess thorough knowledge on the contracts and prevailing law of the region are capable of leading you to a successful outcome.