Contract preparation as part of contract management

1
Contract preparation as part of contract
management
Antti Tieva Helsinki University of Technology CEM
Facility Services Research Group antti.tieva_at_tkk
.fi
2
Background

• Master of Laws 2004
• Researcher since 2005
• 15 people working at the group
• Group focuses on 4 segments in the field of
  construction and real estate
• PhD ready in a year

3
The development of contract law

• Society and contracts more and more contractual
  dimensions
• Business and contracts contracts have a strong
  role
• Contractual skills
• Proactive contracting
• Interdisciplinary approaches

4
The development of contract law

• The need to develop contract practises grows
• The influence of common law in terms of
  contracting
• When business grows and expands also contracting
  becomes more and more international

5
Contract management

• The concept of contract management
• Traditional perspective
• Modern perspective
• Becomes relevant both in contract preparation and
  during contract period
• Long-term contracts in the field of constrction
  and real estate

6
Contract management in contract preparation

• Proactive contracting
• - Louis M. Brown (Preventive law 1950)
• - Ex ante perspective
• - Co-operation of different professions
• - Cost factors

7
Contract management in contract preparation

• Bidding competitions
• - Investing in drafting call for bids and
  tenders
• - Knowing procurement legislation and case law
• - For example procurement of facility services

8
Contract management in contract preparation

• Contract negotiations
• - Negotiations do not bind parties exceptions?
• - Committee report 199020
• - International contract clauses (for example
  PECL)
• - Finnish Supreme Court 199948
• - Investing in negotiations and documentation

9
Conclusions

• Contract management requires new mindset and
  attitude
• Creation of corporate policies
• Contracting skills and education
• Becomes relevant in long-term contractual
  relationships