b'certain things spelled out in black anda strong relationship with, you shouldRisk Managementwhite. However, it will also say that yourestill be putting on some coffee, breakingProject risk mitigation doesnt stop once held to other terms and conditions set outout the highlighter and sitting with thethe contract is signed. It is a living, in another contract document. contract to make sure you have it allbreathing process that requires consistent He continues, If you dont take the timefigured out.monitoring, tracking and assessment to look at what those other terms are,And if you dont understand whats on theto ensure that the risks identified on youre creating a very serious risk thatpage or feel information is missing? Ask.paper are kept in check and dont create youre signing up to something youre notAs both Leduc and Ackerley stress, now isunwanted surprises. fully aware of. no time for contractors to be holding theirIts not a one-and-done thing, says Take a Microscope to noses and diving into a job in the hopesAckerley. When we talk about managing Your Contract that undefined roles and liabilities willrisks, its about both understanding whats All told, a lack of clarity and alignmentwork themselves out. on paper in the contract at the beginning between project stakeholders can layof the project, and then managing those How can you even assess the risk whenrequirements on an ongoing basis. Thats the groundwork for future disputes onyou dont read what the risks are? saysnot only going to keep you protected, but anything from equivalent project reliefLeduc. One thing I often tell mechanicalwhenever someone comes up and asks (EPR) payments to liquidated damagescontractors is that they spend too muchabout anything risk-related, youll have an and payment schedules, or even whotime on the linear numbersthe linearanswer for them.bears the costs when material prices risefeet or number of unitsand their priceMoreover, he says, effective and during a volatile market, much like theinstead of the fine print. But the fine printdocumented risk management practices ones mechanical contractors have beenimpacts your bid price, because the moreare equally important when it comes to contending with in recent years. risk you take, the more contingenciesensuring your company has a strongAs such, there is one overriding messagethere are in your price to carry. and defensible position when and if to contractors from both Ackerley andIdentifying risk is just the first step.disputes arise.Leduc: read your contract in detail. The next, Leduc advises, is to assess theTheres never been such a thing as a risk-The starting point is to understand thatrisk and make an informed decision asfree project. Even still, todays mechanical these are important documents, andto whether or not it can be assumed orcontracts are beholden to terms and you cant just assume that youll be fineallocated elsewhere. If the choice is toexpectations that require even the most without really taking a close hard look atassume the risk, he adds, Make sure yourveteran mechanical contractors to takeit, insists Ackerley. Even if they are aprice reflects that and youre going intoa closer look before they sign on the long-time client and someone you havethe project with eyes wide open. dotted line.TESTED.TRUSTED.SINCE 1992.NATIONAL BULLETIN | Issue 2, 202327'