Embracing and achieving contract management excellence

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Contract management maturity can provide a blueprint for assessing and advancing an organisation’s contract management practices, says Chris Corr of Built Intelligence.

The lively panel discussion on dispute avoidance at the FIDIC International Contract Users’ Conference which took place at the end of last year saw a number of fresh perspectives from panellists, with all agreeing that active risk management is a key component in dispute avoidance.

Having spent most of my career dealing with disputes and other challenges, I am passionate about improving project outcomes for all stakeholders in the construction industry.

In the latest Built Intelligence whitepaper, the Contract Management Maturity Model, we give senior leaders responsible for contract management performance the tools to assess and improve their organisation’s contract management maturity.

In the fast-paced world of construction, the significance of effective contract management cannot be overstated. As the CEO of Built Intelligence, I have witnessed the challenges and opportunities that organisations face in their pursuit of excellence and I hope our whitepaper provides a strategic guide for leaders navigating the complex waters of the construction industry.

Assessing the current landscape: Where are we now? Understanding the current state of your organisation’s contract management is paramount. Leaders must embark on an honest evaluation, identifying strengths, weaknesses, and untapped potential. This introspective journey provides a starting point for improvement, offering valuable insights that lay the foundation for progress.

Envisioning the future: Where do we want to be? Armed with insights into the present, leaders can creatively envision the desired future. What does greatness in contract management look like for your industry and organisational objectives? Aligning aspirations with industry benchmarks becomes a strategic compass for excellence.

Charting the course: How do we get there? Having assessed the present and envisioned the future, leaders must chart a course towards desired contract management prowess. Our whitepaper introduces the Contract Management Maturity Model, a roadmap based on the ‘four stages of competence’ concept, guiding organisations through crucial phases of the learning process.

Methodology for success: Collaborative approach and proven practices The challenges faced by organisations – from unnoticed contract issues to isolated project teams – necessitate a collaborative approach. Our maturity model, distilled from customer experiences, offers a solid foundation for enhancing contract compliance, streamlining processes and navigating the complexities of the construction industry.

Integration is key: Breaking down silos To address the complexities of the construction industry, it’s crucial to deeply integrate contract management into broader business, project and asset lifecycles. Breaking down silos between project teams and other business departments can result in remarkable advancements in speed, project quality and service reliability.

Technology as an enabler: Contract management software Contract management software is a powerful tool in complementing good management practices. This software allows for streamlined processes, comprehensive contract oversight and improved team collaboration. Integrating contract management into broader workflows represents the next evolutionary phase, fostering collaboration, eliminating information gaps and optimising the project lifecycle.

Elevating the game: The contract management maturity model At the heart of our whitepaper lies the Contract Management Maturity Model, offering a roadmap for organisations to enhance their practices gradually. From a beginner phase marked by collaboration and continuous improvement to an expert stage embodying cutting-edge practices, this model guides leaders towards contract management excellence.

Measuring success: Continuous assessment To gauge progress, leaders can leverage radar/spider charts, providing a visual representation of maturity levels across different competency areas. Continuous assessment is imperative, acknowledging that contract management practices and the landscape are in a constant state of evolution.

Unlocking business value: Four key drivers Effective contract management yields tangible business value across agile adaptation, enhanced compliance and risk reduction, operational and delivery cost optimisation and elevated customer experiences. By aligning with these key drivers, contract management positively impacts project timelines, compliance, costs, and customer satisfaction.

Measuring progress: The path to excellence I encourage all business leaders to measure their contract management journeys using critical metrics. From productivity and customer metrics to costs and revenue, tracking progress through these metrics allows organisations to demonstrate advancements and justify investments.

Our whitepaper is not just a guide; it’s a call to action. It empowers leaders to embark on a transformative journey towards contract management excellence, providing the tools and insights needed to navigate the complex landscape.

The construction industry is evolving, and by embracing the Contract Management Maturity Model, organisations can position themselves at the forefront, delivering projects with unmatched speed, quality and reliability. Success awaits those who seize this opportunity to assess their current standing, chart their desired destination and forge a robust strategy to bridge the gap. Let’s embark on this transformative adventure together.

Chris Corr is the CEO of Built Intelligence, a company dedicated to smarter contract management through market leading construction SaaS.

Click here to access Built Intelligence’s on-demand webinar on How to Assess Your Organisation’s Contract Management Maturity.

Click here to take the Contract Maturity Self-assessment.