Analysis on Role of Project Contract Management in Prevention of Project Risks

Abstract

Enterprise contract management means the organized and planned signing and management of contract by enterprises in order to achieve the development of economy. The complex development of building enterprises increases the difficulty of contract management, making the contract management of enterprises more important. Due to long construction period and more influential factors in the building project, the project risks also appear. Implementing contract management can reduce the risks of development of building enterprises ensure that the enterprises can obtain stable income in the fierce market competition, analyze the risks appearing in the building project contract in the current stage, strictly prevent the actual risk problems and take risk prevention measures through the contract management. In this paper, the project contract risk and relevant management measures are researched and analyzed. Risk means the situation that might occur in the specific condition and time, which mainly refers to the difference from the expected objective, including two aspects, i.e. to bring profit to the development of enterprises, and also bring great problems. Therefore, to control the risks and improve development benefit of enterprises, it is required to manage the risks. Risk is objective, so it is required to face and control risks and minimize their negative influence on the development of enterprises. For the building project, due to long construction period, ever-changing projects and more factors involved in the project contract, there are many risks existing in the project contract. Therefore, managing the risks of building enterprises while managing contract has become a focus in the management.