The 5 best practices for preventing disputes with the project owner for project management.
Obligations to maintain a dispute with the project ownerwork on a construction site, what are its responsibilities and how should it be prevented by Maître Cécile Zakine, Doctor of Law, lawyer.
The project manager (or architect) plays a crucial role in the realization of a construction or renovation project.
As a professional mandated by the project owner, he assumes responsibility for the management of the works, the financial summary, compliance with the schedule, verification of invoices and management of contractual relations.
What to do when the project manager enters into conflict with the project owner who disputes the invoices, particularly those relating to additional work?
The oobligations of mmaster ofohWork
1. Conduct of work
The management of works is one of the main responsibilities of the project manager. This includes:
- Lakecoordination of iSpeakers : the project manager ensures coordination between the various stakeholders (architects, design offices, construction companies) to guarantee the harmonious execution of the project.
- The ssupervision of trenovations : He must supervise the work to ensure that it is carried out in accordance with the plans and technical specifications.
- The gmanagement of mmodifications : In the event of changes or unforeseen circumstances, the project manager must propose suitable solutions and obtain the approval of the project owner.
2. Financial synthesis
The financial management of the project rests on the shoulders of the project manager, who must:
- Establish the Forecast Budget : He draws up a detailed forecast budget in consultation with the project owner.
- Sudrunk lit is dexpenses : It ensures rigorous monitoring of expenses to avoid budget overruns.
- Gto erode of hasaccounts and plikes : It checks and validates the progress of the work, as well as the payment requests from the companies.
3. Work schedule
Another crucial obligation is meeting deadlines. The project manager is responsible for:
- THEestablishment of the planning : Develop a detailed work schedule, defining the key milestones and associated deadlines.
- Follow-up of the planning : Monitor the progress of work to ensure that it meets the set deadlines.
- Management of retards : Anticipate and manage possible delays, taking the necessary measures to minimize them.
Be careful with additional work: be precise and rigorous:
Documentation is the key to proving the legitimacy of additional work and its order by the project owner:
- Amendments to the Contract : Prepare specific amendments for each request for additional work, signed by the project owner.
- Purchase Orders : Use signed purchase orders for each additional intervention.
- Construction site reports : Regularly document the progress of work and decisions taken.
3. Work schedule
Another crucial obligation is meeting deadlines. The project manager is responsible for:
- THEestablishment of the planning : Develop a detailed work schedule, defining the key stages and associated deadlines.
- Follow-up of the planning : Monitor the progress of work to ensure that it meets the set deadlines.
- Management of retards : Anticipate and manage possible delays, taking the necessary measures to minimize them.
Be careful with additional work: be precise and rigorous:
Documentation is the key to proving the legitimacy of additional work and its order by the project owner:
- Amendments to the Contract : Prepare specific amendments for each request for additional work, signed by the project owner.
- Purchase Orders : Use signed purchase orders for each additional intervention.
- Construction site reports : Regularly document the progress of work and decisions taken.
4. Verification of invoices
Verifying company invoices is essential to ensure sound financial management of the project. The project manager must:
- Controlr of sWork situations : Review and approve work situations submitted by companies.
- to validate of factions : Check the conformity of invoices with the services provided and the contractual rates.
- suivi of plikes : Ensure payment monitoring in coordination with the project owner.
What does this mean and what to do if payment for work or additional work is refused?
If the project owner refuses to pay the companies' invoices, the project manager can follow several steps:
- Mediation : propose mediation to resolve the dispute amicably before a mediator, but we will know very quickly whether or not mediation is possible
- Friendly expertise : Request an amicable expert appraisal to objectively assess the conformity and cost of the work carried out.
- Send a letter to mise in demeure : If amicable steps fail, the formal notice constitutes a preliminary step before legal action:
Be specific in the cContents of the formal notice : Detail the amounts due, the services provided and the corresponding supporting documents.
If this involves additional work, it should be detailed.
Indicate a dresponse time : Set a reasonable deadline for the project owner to regularize the situation (10 to 15 days)
Notification by bailiff : if you wish, you can have the formal notice sent by a bailiff to give more weight to your request.
- Legal Action : if amicable steps fail, take legal action to obtain payment of unpaid invoices.
- Payment Guarantee : check whether payment guarantees have been provided in the contract and activate them if necessary.
The project manager plays a central role in the success of a construction project.
Their responsibilities in terms of work management, financial management, compliance with the schedule and verification of invoices are essential to guarantee the quality and compliance of the project.
To protect against litigation, it is crucial to draft detailed contracts, maintain rigorous documentation and prioritize transparent communication.
In the event of refusal of payment by the project owner, amicable and legal steps must be considered to ensure the protection of the interests of companies and the success of the project. Making an appointment with a consultant is always wise.