Contract risks

How do I know if a contract contains hidden risk?

Most risks are not hidden because they are secret. They are hidden because they sit inside assumptions, programme oblications, payment clauses, liquidated damages, notice requirements, and variation procedures that are easy to overlook during a busy tender period. The important question is whether you have identified the risks or you are accepting adn priced them accordingly.

We already have experienced estimators. Why would we need a tender review?

Experienced estimators are often focused on scope, labour, materials and delivery. A tender review looks at the commercial and contractual assumptions behind the job. Sometimes the biggest risk on a project is not in the electrical scope at all. It is in the contract you’re about to sign.

What are the most common causes of margin loss on commertcial projects?

Common issues include, scope boundaries, under priced variations, unrealistic delivery assumptions, payment delays, poorly understood contract obligations, and acceptance ofg risks that were not properly priced.

Can you review a tender before we submit it?

Yes. A review can help identify commercial risks, challenge assumptions, and highlight areas that deserve closer attention before a price si submitted.

Do you provide legal advice?

No. Acacia focuses on Engineering, Commercial and operations risk awareness. Where specialist legal advice is required , we can connect you with a specialist legal advisor.

We are a small contractor. Is this only for large businesses?

We specialise in commercial and industrial projects, our perspective comes from sitting on all sides of the table of contractor engagement. We usually come in when a firm hits a ceiling in residential work and starts to think about taking on larger jobs which usually include signing a service agreement or a contract for delivery. That ceiling usually sits above $500k revenue/year.

What is the difference between winning work and winning profitable work?

winning work keeps people busy. Winning profitable work creates a sustainable business. The largest revenue jobs are not always the jobs that create the best return.

How does technology fit into tendering andd risk management?

Technology should support decision-making, not create more administration. The goal is not more software, the goal is better decisions.

What happens after the initial call?

We start by understanding how your business currently reviews opportunities, your pricing strategy, market positioning. From there, we identify if a more detaild review would be useful for your own risk assesment capability, or if you need to work on other strategic areas before worrying about contract risk.