Contracts and planning are closely related. The contract is the main tool available to all parties involved to ensure proper scope management. The planning engineer of a project must know the contract for several fundamental reasons:

  • Understanding obligations and responsibilities: The contract clearly establishes the obligations and responsibilities of all parties involved in the project. A planner must read and understand these clauses to ensure that the project schedule and time management comply with contractual requirements.
  • Constraints and conditions: The contract generally includes specific constraints and conditions that may affect project planning.
  • Milestones and deadlines: The contract establishes the key milestones and deadlines that must be met during project execution. A planner needs to be aware of these milestones to develop a schedule that complies with contractual deadlines and avoids possible penalties for non-compliance.
  • Changes and modifications: Contracts often provide specific procedures for making changes or modifications to the scope of work.
  • Communication and coordination: The contract may stipulate the communication and coordination channels between the parties involved in the project. A planner must understand these aspects to facilitate effective communication and proper coordination during project execution, avoiding misunderstandings and conflicts. This includes how progress updates, schedule changes and other relevant events must be reported and shared.
  • Delay analysis and extensions of time: The contract may contain specific provisions related to delay analysis and the process for requesting and processing extensions of time. A planner must be familiar with these clauses to identify and analyse possible delays, as well as to follow the appropriate procedures when requesting extensions of time, ensuring the integrity of the schedule and avoiding contractual disputes.
  • Reporting format and method: The contract may specify the formats and the way progress reports must be presented, both in terms of planning and execution.
  • Risk management: The contract often includes provisions related to risk management and responsibilities in case of unforeseen events. A planner must consider these provisions when identifying and managing risks in the project schedule.
  • Support to the Contract Manager: The planner must support the contract manager in managing deadlines and delays, providing detailed schedule analyses, identifying opportunities to recover delays and justifying any necessary extension of time.

FIDIC Contracts fidic.org

FIDIC contracts are widely recognised and used in the construction industry globally. These standard contracts provide a clear and equitable structure for managing construction projects, establishing rights and obligations for both owners and contractors. Planning is a critical component in construction project management and is fundamental to the success of any project based on a FIDIC contract.

Main types of FIDIC contracts

  • Red Book: For traditional construction contracts where the design is the employer's responsibility.
  • Yellow Book: For design and construction contracts where the contractor is responsible for both design and construction.
  • Silver Book: For turnkey, EPC, contracts where the contractor assumes most risks.
  • Green Book: For simpler and smaller contracts.
  • FIDIC contract families for construction and consultancy, illustrated by the Green, Red, Yellow, Silver and White book covers.

Most important clauses for a planner

Clause 4: Contractor's obligations

4.10 Site investigation

4.21 Progress of the works

Requires the contractor to follow the approved programme and take measures to mitigate delays. The planner must continuously monitor progress and adjust the schedule as necessary, informing the contract manager of any deviation.

Clause 8: Commencement, delays and suspension

8.1 Commencement of the works

Defines the project starting point, which is crucial for establishing the initial schedule and programming resources. The planner must ensure that all preparations are ready to start the project as agreed.

8.2 Time for completion

Establishes the time frame in which the works must be completed. The planner must break down the execution period into milestones and detailed tasks, ensuring that each project stage is properly scheduled.

8.3 Programme

Requires a detailed programme approved by the engineer, fundamental for project management and monitoring. The planner must develop a realistic and detailed programme, incorporating all activities, durations, sequences and dependencies.

8.4 Extension of time for completion

Defines the conditions under which the contractor may request an extension of time. The planner must identify possible delay risks and prepare documentation justifying the need for extensions, supporting the contract manager in the request for those extensions of time.

Clause 13: Variations and adjustments

13.1 Right to vary

Allows changes to the scope of work to be ordered, which may affect deadlines and costs. The planner must assess the impact of variations on the schedule and reschedule activities as necessary. The planner must provide an impact analysis so that both cost and time impact can be included in the change order.

Clause 20: Claims, disputes and arbitration

20.1 Contractor's claims

Establishes the procedure for the contractor to submit claims for additional time and costs. The planner plays the most important role in case of dispute. The planner must ensure that document management is being performed correctly during the works and, in case of dispute, prepare a detailed report explaining the delays that occurred. This justification must be made using all records generated during the project.

FIDIC contracts provide a robust framework for planning and managing construction projects. By establishing clear procedures for preparing the schedule, allocating resources and managing risks, these contracts help maximise the likelihood that the project will be completed on time, within budget and with the expected quality. For planning professionals, understanding and applying the principles of FIDIC contracts is essential for success in construction project management.