ROAD SERIES – PART 2 – PROJECT START-UP AND COMMENCEMENT

A construction project does not begin at the soil turning ceremony or when the first contract is executed, but much earlier, when it is only an idea yet to be properly explored or vetted. Whilst many projects do not make it past this early inception stage, for those that do, the process from inception through to soil turning is often rigorous, complex, and filled with matters which will shape the way the project progresses throughout its lifecycle.

Planning Stage

The initial planning stage of a project can often be overlooked in the grander scheme, but it is integral to understand its importance before progressing a project unnecessarily.

The planning stage is about the fundamentals which will drive the project forward including key questions such as:

1. what problems needs to be solved;
2. who will be involved; and
3. what will be done.

While these matters might seem simplistic in nature, ensuring proper assessment of these questions facilitates development of guiding principles across a project’s lifecycle and achievement of key objectives.

The planning stage of a project can be further assisted through the development of project documents and business case studies orientated towards focusing project objectives. The use of these processes, which sit outside traditional project considerations represent initial investments which can result in long-term benefits to a project. A legal insight during these processes can ensure a holistic approach is adopted to minimise the potential for disputes, delays, and disruption across the duration of a project.

Implementation Stage

After the planning stage is completed, an implementation process must be adopted which correctly aligns with the project’s objectives.

The early steps in this stage often involve engagement of relevant designers, contractors, consultants, and service providers. This can be facilitated through processes involving:

1. Expression of Interest (EOI);
2. Request for Quote (RFQ);
3. Request for Proposal (RFP);
4. Request for Tender (RFT); and
5. Tender Assessments.

A project may elect to adopt any combination of these processes as it looks to engage designers, contractors, consultants, and service providers.

Legal Support

During the implementation stage the importance of legal advice and guidance may be overlooked, but it can be critical to:

1. the effective operation of a tender process;
2. development of contractual approaches and strategies which are tailored to the project and tendering requirements;
3. early drafting of contract provisions and amendments to facilitate a contract suite which accounts for unique project considerations and requirements;
4. ensuring obligations across contractual suites are back-to-back to limit risk exposure;
5. maintaining compliance with tender process requirements;
6. effectively managing ongoing legal considerations and requirements which arise on an ad hoc basis; and
7. risk management and mitigation.

Importantly, it is increasingly common for tenderers to be required to provide proposed departures to contracts as part of a tender response. Incorrectly managing this process can lead to the adoption of risk profiles which are not favourable to the tenderer or the inclusion of arbitrarily short timeframes which increase contractual compliance and management costs. Hence, engaging legal support to assist in this process can often add value not just to a tenderer’s response, but ensure the potential for future disputes are minimised through adoption of agreeable and manageable contractual positions.

Next week in Part 3, we will explore the contracting strategies which are used on roads projects in Australia, their key strengths and weaknesses, and what to keep in mind when determining which approach is best for your project.

The LPC Lawyers Team

The team at LPC Lawyers has extensive experience in assisting companies from project inception through to practical completion and beyond. Our team can provide tailored support and detailed advice across the lifecycle of a project to assist clients as and when required.

If you have any questions about your current or future projects, please do not hesitate to contact LPC Lawyers for a discussion on how we can assist you.

The contents of this article is for information purposes only; it does not discuss every important topic or matter of law, and it is not to be relied upon as legal advice. Specialist advice should be sought regarding your specific circumstances.

Contact: Peter Lamont or Ryan Bryett

Email: [email protected] or [email protected]

Phone: (07) 3248 8500

Address: Suite 1, Level 1, 349 Coronation Drive, Milton Qld 4064

Postal Address: PO Box 1133, Milton Qld 4064