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Tim Fairley

So far, we've helped over 20,000 students accelerate their careers in construction management by mastering the fundamentals.

Learn how to read, understand, and use construction contracts to achieve project success.

The course is:

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So far, we've helped over 20,000 students accelerate their careers in construction management by mastering the fundamentals.

Learn how to read, understand, and use construction contracts to achieve project success.

The course is:

  • Proven - taken by thousands of students with satisfied results. Over 94% of students surveyed believed our construction management courses supported their career progression

  • Practical - developed in consultation with industry experts to teach you exactly what you need to know to succeed in the real world

  • Fast - we know you are busy, so we developed the course with that in mind and cut out every second of unnecessary information

  • Packed with Downloadable Resources - we offer students resources, templates, and downloadable copies of all slides so you never forget what you learned.

  • Contains useful templates - we offer useful templates so you can apply the skills in the real world

And we are always improving. We want to hear your feedback and we are committed to helping you on your journey. We will always respond to questions, queries, or feedback suggestions.

We are super excited to have you enroll in Construction Contract Management.

Learn the fundamental skills required to manage contracts.

Major infrastructure projects involve thousands of people working together. These people come from different companies with potentially conflicting objectives. Construction contracts govern the relationships between all of these parties. It is the role of the construction project manager to manage these contractual relationships to get the job done.

The course is broken down into four sections:

  • Section 1 - Introduction to Construction Contract Management

    • Contracts and Engineering

    • The Parties Involved in a Contract

    • Contracts and the Law

    • Allocating Responsibility

    • The Formation of Construction Contracts

    • Administrating Construction Contracts

    • The Essential Elements of a Construction Contract

    • Forms of Construction Contracts

    • Construction Claims

  • Section 2 - Contract Components

    • The Scope of Works

    • Payment

    • Security

    • Quality and Defects

    • Insurances

    • Time

    • Default and Termination

    • Penalties and Rewards

    • Disputes

  • Section 3 - Head-Contract Management

    • Forms of Head-Contract

    • Head-Contract Formation

    • Head-Contract Administration

    • Head-Contract Risk Management

    • Claims and Disputes

    • Contract Close-Out

  • Section 4 - Sub-Contracts

    • Forms of Sub-Contract

    • Sub-Contract Formation

    • Sub-Contract Administration

    • Sub-Contract Risk Management

    • Sub-Contract Close-Out

  • Review and conclusion

If you're ready, let's get started.

Enroll now

What's inside

Learning objectives

  • We've helped over 20,000 students
  • Over 94% of students surveyed say we helped accelerate their careers
  • Why contract management is a critical skill for construction management professionals
  • Taught in consultation with industry experts
  • Downloadable resources
  • Understand the role construction contracts make in project outcomes
  • Accelerate your construction management career by mastering the critical skill
  • What a construction contract is made up of
  • The purpose, styles, and use of construction contracts
  • The difference between head-contracts and sub-contracts
  • The types, formation, administration, risk and claim management of both head and sub-contracts
  • How to effectively manage construction claims and disputes
  • Use construction contracts to achieve project success
  • The purpose of a scope of works document
  • What security and bank guarantees are
  • The different types of construction claims
  • How to manage an extension of time claim
  • How to review and approve payment claims
  • Show more
  • Show less

Syllabus

In this section we'll provide you a brief overview of this course and the context and perspective from which the course has been developed.

Hi! Thanks for choosing to undertake this short course on Construction Contract Management. In this section, we'll provide you with an overview of the course.

Read more

Welcome to Section 1 where we are going to go through the basics of construction contracts.

In Section 1.1, we'll talk about why contracts are relevant to the construction industry. We'll go through the purpose of contracts, what contracts are, their importance, and some examples of the types of contracts used on construction projects.

In this lecture, we'll look at the different parties involved in construction contracts

In this section we look at the framework all contracts operate in; the law. We'll go through the rule of law, formation of the law, and the types of law.

The primary purpose of a contract is to clearly define responsibilities. In this section, we talk about how contracts allocate both scope and risk between parties through the contract documentation.

In this section, we'll go through how contracts between two parties are formed. We'll cover the basic requirements for contract formation and procurement; the general process of contract formation on engineering projects.

Let's learn about the process of monitoring and facilitating the smooth performance of the contract works.

Now we understand the purpose, relevance, and process for forming construction contracts, it's now important to develop an understanding of exactly what a contract consists of. In this section, we'll look at the components of a construction contract including contract terms and supporting documentation.

In this section, we talk about the variety of different forms of construction contracts and their applications.

In this section, we look at what happens when parties don't do exactly what they are meant to and claims and disputes arise.

This short quiz will test your knowledge of the content in section 1.

Welcome to Section 2, where we're going to go through the components that make up a construction contract in lots of detail.

In section 2.1 we look at the key documents that describe the work to be performed by the contractor. The scope of works is where the principal defines the work to be performed under the contract.

Attached is an example scope of works for a minor street lighting civil works sub-contract. Review the scope of works attached and see how well you think it describes the contract requirements.

In section 2, we discuss the primary responsibility of the principal; to pay the contractor for the work completed. In this section, we discuss payment mechanisms and payment claims.

In this case study, we'll look at how payment can be a powerful motivator for our sub-contractors

Let's look at an example of why it's important to define the rules around how and under what circumstances contractor's get paid.

In this section we'll learn about security. Security are performance undertakings provided by the contractor or principal to ensure due and proper performance of the contract

Quality in the contract defines how the principal ensures the contractor performs the works in compliance with the design and technical specifications.

Let's look at a case study showing how contracts allow us to manage the performance of our sub-contractors.

Things can and do go wrong on construction projects. Insurances are used to ensure third-party insurance companies will provide compensation in these cricumstances.

Get ready cause this is a long section! In this section, we go through the critically important topic of time. Time under the contract is critical to understand and get right to make sure we properly manage the risks of the project being delayed.

Let's look at an example of an acceleration claim from a sub-contractor

In this section, we'll briefly look at what happens when parties do not uphold their side of the agreement.

Let's look at an example of how failure by a sub-contractor to perform their scope can lead to us de-scoping them

In this section, we briefly look at penalties and rewards. These are mechanisms the principal has for motivating positive performance and behaviour from the contractor.

In this section, we briefly look at what happens when disputes arise between the principal and the contractor.

Finish off section 2 with a quick quiz to test your knowledge and understanding.

Welcome to Section 3, where we're going to talk all about the contract between the Client and the Head Contractor.

Let's now look at all the different forms of head-contract available for us to use.

Over time, the contract model clients have used to engage head-contractors has evolved. Let's look at why this has been happening.

In this section, we look at how head-contracts are formed.

In this section we look at the administration of the head-contract

Let's look at how effective head-contract administration helps control and manage project outcomes

In this section we'll look at how the head-contractor manages risk in the contract

In this section we'll talk about claims and disputes relating to the head-contract

Let's look at the process through which we close out the head-contract

Let's do a quick quiz to recap your understanding of section 3

Welcome to section 4, where we're going to talk about the contract between head-contractors and their supply chain.

In this section we look at all the different forms of sub-contracts.

In this section we briefly go through the procurement process and how head-contractors choose their suppliers and sub-contractors

Let's look at a case study of what goes into the formation of major sub-contracts and how this sets the project up for success

Let's now look at how to administer and manage sub-contracts

Let's look at a case study of proper sub-contract administration

In this section we talk about how to manage sub-contractor risks

Let's look at the process we follow to close-out our sub-contracts

Try this quick quiz to review what you've learnt in section 4

Welcome to section 5 where we'll recap everything we covered in the previous sections.

Let's go over what we learnt in section 1 of the course.

Let's review what we learnt in section 2 of the course.

Let's review what we learnt in section 3 of the course.

Let's review what we learnt in section 4 of the course.

Congratulations on finishing the course!

Traffic lights

Read about what's good
what should give you pause
and possible dealbreakers
Provides downloadable resources and templates, which can be directly applied to real-world construction projects and contract management tasks
Explores the types, formation, administration, and risk management of both head contracts and sub-contracts, which are essential for project managers
Teaches how to manage construction claims and disputes effectively, a critical skill for mitigating risks and ensuring project success
Developed in consultation with industry experts, ensuring the course content is practical and aligned with current industry standards and practices
Requires learners to understand the basics of construction contracts and their relevance to construction projects, which may require prior experience
Includes case studies and examples related to payment claims, which may require learners to have some familiarity with construction finance

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Reviews summary

Practical construction contract management fundamentals

According to learners, this course provides a strong foundation in construction contract management, focusing on practical application and real-world scenarios. Many students found the content clear and concise, particularly appreciating the inclusion of useful templates and downloadable resources that can be immediately applied to their work. The course is widely seen as a valuable resource for professionals looking to understand contractual relationships, manage risks, and navigate claims and disputes effectively. Some reviewers noted that while it covers fundamentals well, those seeking very advanced or country-specific legal details might need supplemental resources.
Templates and materials add significant value.
"The downloadable templates are worth the price of the course alone."
"Loved having the slides and resources readily available."
"The practical templates save a lot of time and effort."
"Excellent bonus resources provided for practical use."
Well-explained topics, easy to follow.
"Lectures are clear, easy to understand, and straight to the point."
"The course is well-structured and the information is presented logically."
"Complex legal concepts are explained simply."
"Video quality and explanations are excellent."
Directly useful for real-world construction work.
"The practical examples and case studies were highly beneficial."
"Learned strategies I could immediately apply to managing contracts on my projects."
"Content is focused on real-world application, not just theory."
"The templates provided are extremely helpful for daily tasks."
Builds a solid understanding of contract basics.
"This course gives a very good overview of the basics of construction contract management."
"Provides a great foundational understanding necessary for anyone in the field."
"I feel much more confident about managing contracts after completing this course."
"It is a strong introductory course for contract management."
May require additional study for advanced or specific areas.
"While comprehensive for basics, it doesn't delve deeply into highly complex legal nuances."
"Depending on your location, you might need to supplement with country-specific law."
"Could benefit from more advanced topics or case studies for experienced professionals."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Construction Contract Management with these activities:
Review Contract Law Fundamentals
Strengthen your understanding of the legal principles underpinning construction contracts. This will provide a solid foundation for understanding contract formation, interpretation, and dispute resolution.
Browse courses on Contract Law
Show steps
  • Review key concepts of contract law.
  • Study the elements of a valid contract.
  • Research common contract disputes.
Read 'Construction Law' by Julian Bailey
Gain a deeper understanding of construction law principles. This book provides a comprehensive overview of legal issues relevant to construction projects.
View Construction Law on Amazon
Show steps
  • Obtain a copy of 'Construction Law' by Julian Bailey.
  • Read chapters relevant to current course topics.
  • Take notes on key legal principles and cases.
Analyze a Sample Construction Contract
Apply your knowledge by dissecting a real-world construction contract. This will help you identify key clauses, understand risk allocation, and improve your contract interpretation skills.
Show steps
  • Obtain a sample construction contract.
  • Identify key clauses and provisions.
  • Analyze risk allocation between parties.
  • Summarize your findings in a report.
Four other activities
Expand to see all activities and additional details
Show all seven activities
Develop a Contract Checklist
Reinforce your understanding by creating a checklist for reviewing construction contracts. This will help you ensure that all essential elements are included and that potential risks are addressed.
Show steps
  • Identify essential contract elements.
  • Create a checklist for each element.
  • Refine the checklist based on course materials.
Prepare a Presentation on Contract Claims
Deepen your understanding of contract claims by preparing a presentation. This will require you to research different types of claims, analyze case studies, and develop effective communication skills.
Show steps
  • Research different types of contract claims.
  • Analyze relevant case studies.
  • Prepare presentation slides and talking points.
  • Practice your presentation delivery.
Read 'Construction Contracts: Law and Management' by Will Hughes
Expand your knowledge of contract management with a practical guide. This book covers legal and management aspects of construction contracts.
Show steps
  • Obtain a copy of 'Construction Contracts: Law and Management'.
  • Read chapters on contract administration and risk management.
  • Compare the book's insights with course materials.
Participate in a Contract Negotiation Simulation
Enhance your negotiation skills through a simulated contract negotiation. This will provide a hands-on experience in applying contract principles and resolving disputes.
Show steps
  • Form a group with fellow students.
  • Develop roles and negotiation scenarios.
  • Conduct the negotiation simulation.
  • Debrief and discuss lessons learned.

Career center

Learners who complete Construction Contract Management will develop knowledge and skills that may be useful to these careers:
Contract Administrator
A Contract Administrator is directly involved with the lifecycle of construction contracts. This course is a powerful tool to improve skills and knowledge in this area. The administrator prepares, reviews, and manages contracts, ensuring they comply with legal requirements, company policies, and project specifications. With attention to head contracts and sub-contracts, the course helps a Contract Administrator manage risk and handle claims effectively. A deep dive into contract components, as this course provides, assists in the development of a successful Contract Administrator.
Contracts Manager
Contracts Managers oversee the creation, execution, and management of contracts, making this course exceptionally helpful. A Contracts Manager ensures that contract terms and conditions are followed, and that any disputes are resolved efficiently. This training helps build a strong understanding of contract law and the essential elements of a construction contract. The course also examines the different types of construction claims and how to manage them, skills that are of prime utility to any Contracts Manager.
Subcontracts Manager
Subcontracts Managers require knowledge of subcontracts, and this course is directly applicable. A Subcontracts Manager oversees the formation, administration, and close-out of subcontracts, ensuring compliance and managing risk. The course dedicates a section to sub-contracts. With an examination of forms, formation, administration, and risk management, this course will help the Subcontracts Manager execute their essential job functions.
Construction Manager
The responsibilities of a Construction Manager often include overseeing project contracts, making the subject of this course directly relevant. A Construction Manager directs and coordinates activities concerned with the construction of structures, facilities, and systems. This course helps develop a comprehension of contract components such as scope of works, payment terms, security, and quality control. Understanding head contracts and sub-contracts, as covered in the course, may allow someone to excel as a Construction Manager. The course includes vital information about contract formation, administration, and risk management.
Claims Manager
Claims Managers need expertise in contracts, and this course prepares individuals for this area. A Claims Manager analyzes, evaluates, and resolves construction claims, ensuring fair settlements and adherence to contract terms. The course will train students in construction claims as well as disputes. With attention to different types of construction claims and how to manage them, this course helps Claims Managers excel in their role.
Contract Specialist
Contract Specialists are experts in contract negotiation, drafting, and administration. This course provides knowledge of contracts. Contract specialists are able to implement project contracts, and they must be experts in the types of contracts that are used. Contract Specialists administer construction contracts, and they must understand different components that make up a construction contract. This course can provide insight useful for Contract Specialists.
Project Manager
Project Managers in construction must negotiate, interpret, and manage contracts. This course directly helps improve skills, providing a better understanding of the different types of contracts, their formation, and administration. A Project Manager oversees the entire construction project from start to finish. The course's overview of contract law and the elements of a construction contract are helpful for a Project Manager. The course's resources, templates, and downloadable slides all support career growth for Project Managers.
Construction Supervisor
Construction Supervisors benefit from a solid understanding of construction contracts. This course delivers practical knowledge about contract management and its impact on project success. A Construction Supervisor oversees construction activities, coordinating workers and ensuring projects are completed on time and within budget. This training may help supervisors understand the allocation of responsibilities within a project, as well as understand payment, security, quality, insurance, and time clauses. The course breaks down the elements of successful construction contracts into easily digestible segments.
Quantity Surveyor
Quantity Surveyors manage costs on a construction project, and contracts outline the financial parameters. This course describes payment terms, and quantities. A Quantity Surveyor manages all costs relating to building and civil engineering projects, from initial calculations to final figures. With instruction in head contracts and sub-contracts, this course may help the surveyor manage sub-contractor risks as well. Understanding dispute resolution from this course may provide insight into how to best resolve conflicts.
Construction Lawyer
Construction lawyers specialize in construction related law. This course is closely related to their duties. While a Construction Lawyer typically requires a law degree, this course helps lawyers understand the practical aspects of construction contracts. This course examines contract law, dispute resolution, and claims. For prospective Construction Lawyers, this course is helpful.
Estimator
Estimators need to understand the scope of work defined in construction contracts to accurately prepare cost estimates. This course provides an overview of what goes in to a scope of works document. An Estimator analyzes project plans and specifications to prepare detailed cost estimates for construction projects. This training may help them understand how contracts allocate risk and responsibility as well as understand contractural responsibilities. The course could be of particularly high utility by detailing the elements that can contribute to, or mitigate risks in the project, as well as payment terms.
Project Engineer
This course may be useful to a Project Engineer. A Project Engineer supports Project Managers in overseeing construction projects, often handling contract-related tasks and documentation. Project Engineers often must understand construction contracts, and this course addresses the essential elements of a construction contract. It may also help project engineers understand the purpose, styles, and uses of constracts.
Construction Executive
Construction Executives may benefit from this course. A Construction Executive oversees the strategic direction and operations of a construction company, including contract negotiations and risk management. This course considers head-contracts and sub-contracts. With an enhanced understanding of contract law and management, this course helps Construction Executives lead their organizations.
Compliance Officer
This course may prove helpful to the Compliance Officer. A Compliance Officer ensures construction projects adhere to legal and regulatory requirements, including contract compliance. With insight into contract components, the course may help ensure that construction projects are above board. For those seeking to enter the field of compliance in the construction vertical, this course may prove helpful.
Auditor
This course may be useful to the Auditor. Auditors review construction project finances and contracts to ensure compliance and accuracy. The course covers contract law, payment terms, and dispute resolution. With an comprehension of construction contracts, this course will help Auditors perform audits on construction projects more effectively.

Reading list

We've selected two books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Construction Contract Management.
Provides a comprehensive overview of construction law principles and practices. It covers a wide range of topics relevant to construction contract management, including contract formation, risk allocation, and dispute resolution. It valuable resource for understanding the legal framework within which construction projects operate. This book is commonly used as a textbook at academic institutions.
Offers a practical guide to the legal and management aspects of construction contracts. It covers key topics such as contract administration, risk management, and dispute resolution. It is particularly useful for understanding the practical challenges of managing contracts on construction projects. This book is more valuable as additional reading than it is as a current reference.

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