A guest lecture has been organized by Dredging Corporation of India today at its corporate headquarters on “Commercial Contracts – Reading the Fine Print”. Mr. D.V.Subba Rao, an eminent lawyer and former Chairman of Bar Council of India, addressed the officers of DCI and answered their questions after the speech.
Mr. D.V.Subba Rao, in his speech touched upon various facets of successful contracting and emphasized the need for constant monitoring so that cost and time overruns are minimized. Preparation of proper ground work for estimates, defining the scope of contract without ambiguity, documentation of communication during the execution process, clarity on terms of extra work to be done, and a managerial orientation are the important aspects of contracts that require to be addressed consistently.
The milestones at each stage of the contract have to be completed properly without cost escalations. Continuous communication between the parties during the interlocutory correspondence effectively prevents future disputes. Similarly, the contractor’s claims are to be dealt with promptly for avoidance of disruption in the schedule of payments. Laxity in furnishing drawings and giving other support to the contractor should be avoided.
Mr D.V.Subba Rao has suggested that experience of the company as well as other organizations, in undertaking similar contracts in the past, can be drawn upon while floating tenders for the new work. Provisions relating to liquidated damages, penalties and force-majeure should be clearly spelt out.
The speaker has urged the members to update themselves on the latest developments in contract law and incorporate all legal, technical and managerial parameters in the tender documents. Capt.S.S.Tripathi, CMD, DCI has presided. Mr. P.V.Ramana Murthy, Director (Finance) is among those present. Mr. S.Vasudeva Rao, IPS, Chief Vigilance Officer, DCI has welcomed the gathering. Mr. V. Narasimha Rao, DGM(Legal) proposed a vote of thanks.
[mappress]
Source: dredge-india, February 10, 2011