Top Tips on Managing Projects in an Uncertain Economy

Scotland

What are the problems?

In a financial climate where we are faced with daily news about the downgrading of credit grades of major UK and international banks, the Eurozone debt crisis and the harsh reality of the UK Government's deficit programmes, it is natural that funders become more cost conscious, litigation becomes more prevalent and authorities come under ever-increasing pressure to make savings where possible.



Try to stay ahead of the game when managing your projects.



Top Tips

Keep up to date with changes in legislation and guidance. Check the terms of your contract - your subcontractors may (or should) have priced for some upcoming changes.
Review the financial stability of your subcontractors - if they’re facing financial difficulties, they will be keen to extract cash from the project sooner rather than later. Is this influencing how they carry out their obligations?
Review your own contractual obligations. Try to minimise exposure to deductions, liquidated damages or other claims.
Try to avoid disagreements crystallising into formal disputes.
Keep in touch with your subcontractors - be aware of what’s happening on the ground.
If you have external funding, keep your funders fully appraised of developments.
Understand your funding agreements. Your funders will be watching the project closely and will not hesitate to enforce the contract terms; in some cases they may seek to amend those terms.
Manage project changes carefully - if funding is required it may not be available in the market or may be available but at a very high cost; can the changes be instructed at another time?