What Does a Building Contractor Do?

A construction contractor, that is, a construction project contractor, refers to a party in the agreement that has been accepted by the project contractor and has the qualifications of the project construction contractor, or a legal successor who has obtained the qualifications of the party. ^[1]

The construction contractor plays a very important role in the quality of the house during the construction of the commercial house, and it is also an important link in the real estate development process.

1. Reasons for building contractors to implement risk management

Need for security.

Based on economic cost considerations.

Government decree requirements.

2. Possible risks

Risks in the decision-making stage of bidding: risks of missing information; risks of intermediaries or agents; risks in quoting strategies; risks from partners.

Risks during the signing and implementation phase: risks of contract terms; risks of contract management; risks of project management; risks of cost management; risks of material supply; risks of the owner's ability to perform the contract; risks of subcontracting; risks caused by force majeure.

Risks in the stage of project acceptance and delivery: risks in the management of completed acceptance data; risks in the completed acceptance; risks in the processing of claims and debts.

3 Risk management measures

Project risk management is a dynamic management process, including identification of project risk sources, quantification of project impact results, and response countermeasures to project risks: determination of risk management goals; formulation of engineering risk management plans; implementation of risk management plans and Assess and respond.

Below we focus on the risk management of bidding decisions and the risk management of T-contracts. The risk management of bidding decisions is related to the availability of the company's order, while the risk management of the construction contract is related to the building quality of the company, which ultimately affects the company's reputation and even survival and development.

(1) Risk management of contractors in project bidding.

Make good use of the law to protect your rights. Contractors should be good at using the law to protect their legitimate rights and interests, study policies and legal documents in a timely manner, and strengthen communication with the government.

Review the situation and make correct decisions. The contractor must do a feasibility analysis before bidding for the project. For projects with too high risk or a small possibility of winning the bid, avoid the main task and not participate in the bidding.

Strengthen management and focus on accumulation. Contractors should usually strengthen internal management, focus on accumulating data and information, and establish specialized and complete bidding archives.

Advance services and develop relationships. Contractors should establish a forward-looking service consciousness, develop stable, long-term public relations, and establish a sound information network and technical network.

Strengthen confidence and cultivate patience. In the bidding, various risk factors are unavoidable in the increasingly fierce competition. Once the contractor participates in the bidding, he must have sufficient confidence and patience to pay attention to the details of the management.

(2) Risk management of construction contracts. The risk management of the T contract is one of the main indicators to measure the management level of the contractor. Use contracts as a code of conduct to strengthen contract risk management. Use contracts to guide project implementation and work. Can reduce uncertainty during construction and strengthen accountability. It can better and accurately plan and arrange project construction, and it can also prevent risks well. Maximize the enthusiasm of contract risk control and technological innovation.

The main tasks of risk management of construction contracts include the following five aspects: comprehensive analysis and forecasting before signing the contract; determining legal liabilities under different contract conditions; taking effective countermeasures to prevent risks; effectively controlling risks during contract implementation; Master the basic principles of contract risk.

The risk of a construction contract is often related to the success of a project and the economic benefits of the contractor. No contractor can ignore this issue. The countermeasures of contract risk mainly include the following five aspects: adopt effective strategies to avoid risks; improve contract terms through contract negotiations; purchase insurance, diversify and transfer risks; create conditions to make full and reasonable use of risks; and conduct good engineering claims management. ^[1]