When managing a contract, it’s important to recognize that it consists of three key components: technical, commercial, and legal. Each plays a distinct role:

• Technical: Defines what will be delivered.
• Commercial: Specifies how it will be delivered, along with cost and time.
• Legal: Outlines the laws and regulations governing the technical and commercial aspects.

A well-structured contract effectively integrates these three areas, ensuring that they align cohesively without any gaps.

Understanding the Contractual Timeline

One way to understand how the technical, commercial, and legal elements interact is by mapping them out over a timeline. This visual representation allows you to sequence key contractual events and trace them back to their originating sources (such as the document, clause, or paragraph where the terms are stated). This timeline serves as a quick reference map, simplifying contract management.

Based on FIDIC’s guidelines, the following are the main contractual milestones:

• Base Date (or Contract date)
• Commencement Date (or Notice to Proceed - NTP)
• Performance Security (e.g., performance and downpayment bonds)
• Time for Completion (the guaranteed period to perform services)
• Test on Completion (to demonstrate compliance with the contract)
• Taking-Over Certificate (or Provisional Acceptance, when ownership is transferred to the employer)
• Tests after Completion (if required, to verify ongoing compliance)
• Defects Notification Period (warranty period)
• Performance Certificate (or Final Acceptance, when the employer assumes full responsibility)

Graphing these events on a timeline gives you a clear overview of the project’s flow, helping you track progress and compliance. See below example taken from the FIDIC Silver Book

Enhancing the Timeline with Project-Specific Information

To make this timeline even more useful, add project-specific details, such as:

• Duration of each phase
• Milestone caps or “not to exceed” dates
• Definitions of each milestone
• Payments and securities tied to each stage
• Milestones subject to Liquidated Damages (LDs)
• References to the documents, clauses, or paragraphs defining each condition

With all this information in one place, you gain a complete view of the contract’s structure, helping you manage timelines, payments, and legal obligations more effectively. The timeline also becomes a valuable tool for communicating key contractual details to your suppliers and subcontractors.

Simplifying Contractual Complexity

While these diagrams can greatly aid in managing contracts, it’s important to avoid overloading them with excessive detail. Focus on the key milestones and flowdowns that must be passed to your partners. Keeping the diagram clear and easy to understand is essential for its effectiveness.

At ATL Consult, we specialize in helping businesses navigate the complexities of contract management. By focusing on the technical, commercial, and legal aspects, we ensure your projects stay on track, minimizing risk and maximizing success. Contact us today to learn more about how we can support your next project.