In large-scale projects such as infrastructure
, area development , or the energy transition , contracts form the formal basis of collaboration. They define not only what needs to be delivered, but also how, by whom, and under what conditions. A well-structured contract is therefore not an obstacle, but a strategic tool for project management.However, in practice, contracts are often not fully read or understood. They are perceived as complex and, as a result, are underutilized. At BAEKEN
, we view contracts as the manual for the project: clear, guiding, and protective, provided they are properly interpreted and applied correctly.Contracts provide structure and predictability. Standardized contract forms such as FIDIC, UAV-GC, and NEC4 offer uniform formats that are widely recognized in the market and legally tested. These standards ensure consistent information presentation and clearly define roles, responsibilities, and procedures.
At BAEKEN, we are familiar with these contract forms. This enables us to quickly locate the right information, understand risks, and set up projects in a structured way. Standardization in this case doesn’t mean rigidity but rather efficiency: it accelerates the startup phase and prevents ambiguities that could later lead to disputes or delays.
A core function of a contract is the allocation of risks. Contract forms explicitly define who is responsible for what parts of the project—and the associated risks. These include responsibilities related to design, ground risks, permits, or price increases.
For example:
At BAEKEN, we carefully analyse this risk allocation in the initiation phase, ensuring that project control is aligned accordingly. We make sure the risk register, control measures, and planning buffers match the contractual reality. This helps us avoid surprises and allows for proactive management.
A relatively new trend in contract formation is the rise of two-phase contracts. This contract form is used mainly in innovative or complex projects where there is still significant uncertainty in the early phases.
In the first phase, the client and contractor collaborate on the design, risk identification, and cost estimation. After that final agreements are made in the second phase regarding execution.
The benefits of this approach include:
At BAEKEN, we support both clients and contractors in making the most of this flexibility—without losing control over project management.
A contract is not just relevant for lawyers or contract managers—it must be embraced throughout the project team. At BAEKEN, we promote contract awareness: from planners to risk managers, from controllers to work preparers.
We ensure that the contract is not a “document in the drawer” but an integral part of:
This makes the contract an active reference point throughout the entire project, leading to consistency, traceability, and strong decision-making.
Contract forms are more than legal documents: they form the foundation for structure, collaboration, and risk management in projects. Whether it is UAV-GC, FIDIC, NEC4, or a two-phase contract, the strength lies in understanding, applying, and adhering to them.
At BAEKEN, we help our clients view contracts not as limitations, but as a strategic compass. We ensure insight, interpretation, and application, so that projects remain manageable and collaboration is strengthened.
A well-understood contract is not a burden, but a key to successful project management.
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