The contract terms & the estimate are sometimes seen as unrelated documents; how often have you priced an estimate without reviewing the contract terms?

The t’s & c’s can affect the price in many ways, for example:

• Contract dates – do your rates reflect the requirements of the programme
• Resource – If you’re now working under an admin heavy contract have you allowed for additional resource (& time)
• Logistics – Are there restrictions on delivery or storage
• Attendances – Have you allowed for your attendances as described in the schedule
• Management – do you need full time rather than floating management
• Payment terms – how long is the payment cycle, how will this affect cashflow, do you need to adjust your activity schedule to compensate
• Retention – how much & for how long, consider how much is held on other projects, how will this affect your cash flow.

Then there is

• Risk – What risks does the contract impose upon you. Reviewing the contract will identify which clauses impose project risk, knowing the risk allows you to allocate contingency to mitigate the risk.

Ensure you price reflects the work required and the risks & obligations imposed by the contract terms.