b'MANAGING PROJECT RISKTake a close look at your contractsMATTHEW BRADFORDW hen was the last time you tookRisk can take many forms in a mechanicallanguage, festers and can sidetracka close look at your projectcontracting project. In many cases, theya project.contract? Given the potentialtake root when mechanical contractorsFurther risks can take shape in the design exposures and liabilities within todayssign a subcontract without fullprocess. In some instances, Leduc has seen mechanical contracting jobs, there isclarification or stakeholder alignmentcontractors assume a disproportionate immense value in making project riskaround their obligations as they relate toamount of risk when it comes to building management a priority from the start. scheduling, reporting, claims processes,information modelling (BIM), ultimately It always pays to be very mindful andwarranty periods or even their roles andleading to higher project expenses: Say a cautious when approaching any project,responsibilities in the design-assist process. mechanical contractor gets the BIM at a particularly as contract terms andFor example, says Leduc, There are issueslevel of development [LOD] of 200 and conditions become more onerous, agreeswhere mechanical contractors sign upfinds out during the project that they have Glenn Ackerley, seasoned industry lawyerfor design-assist without recognizing thatto bring it up to LOD 500 as part of their and chair of the Construction Practiceit means something different to themprocess. The problem is that expectation Group at WeirFoulds LLP. than it does to the general contractormay be miscommunicated in the tender Ackerleys words of wisdom are shared byor design-builder. They may think thedocuments or the contractor doesnt many in the industry. This includes Danextent of their obligation is to giveread that part fully, so they sign up for Leduc, partner with Soloway Wright LLP,some preliminary comments before thesomething that ultimately becomes a very, who has seen mechanical contractors takedrawings are issued for construction.very expensive process.on a greater share of risk in their roles:However, the design-builder or generalCertainly, one of the biggest root causes Over the last 30 years or so, theres beencontractor may be thinking, Well, if youof project risk is misaligned expectations. a continuous increase in the downloadingare doing design assistance, there shouldOften, says Ackerley, these occur when of risk. More and more, weve seenbe no change orders, no RFIs [Request mechanical contractors do not identify project owners take the full bundle offor Information]. or address discrepancies between their risks associated with the project andsubcontract and the prime contract. download them to the general contractor,As you can imagine, that can leadYou need to be cautious and prudent who then downloads thatsometimesto disagreements down the line,about what terms and conditions your disproportionatelyonto Leduc continues. That level ofsubcontract has incorporated by reference their subcontractors. miscommunication, even with contractfrom the main contract. It may have 26 www.mcac.ca'