About this course
🔹 1. What is Contract Creation?
Contract creation is the process of:
Defining project scope
Finalizing commercial terms
Setting timelines
Allocing responsibilities
Documenting legal conditions
Getting approvals & signatures
It converts a project award into a legally binding agreement.
🔹 2. Typical Steps in Al-Shafar Contract Creation Process
1️⃣ Tender / Award Stage
Client issues tender
ASGC submits quotation
Negotiation happens
Project is awarded
2️⃣ Contract Drafting
The contract team prepares:
Scope of Work (SOW)
BOQ (Bill of Quantities)
Payment terms
Milestones
Project duration
Variation clause
Retention & penalties
Warranty terms
3️⃣ Internal Review
Departments involved:
Commercial
Legal
Finance
Engineering
Project Management
They verify:
Budget alignment
Risk exposure
Cash flow impact
Compliance with company policy
4️⃣ Approvals Workflow
In ERP systems (like Odoo or Oracle used in big companies), the contract goes through:
Project Manager approval
Commercial Manager approval
Finance approval
Director / Senior Management approval
5️⃣ Contract Signing
Once approved:
Both parties sign
Contract number is generated
Project code is created in ERP
Budget is allocated
Project execution begins
🔹 3. What Information Is Usually Included?
Section Details
General Info Client Name, Project Name, Location
Commercial Contract Value, Currency, Payment Terms
Technical Scope, Specifications
Timeline Start Date, Completion Date
Financial Advance %, Retention %, Performance Bond
Legal Dispute resolution, governing law
🔹 4. In ERP (Like Odoo) – Contract Creation Includes
If you're working in Odoo (like your current work):
Contract creation may include:
Creating a new project
Linking customer
Setting contract value
Defining budget lines
Assigning execution schedule
Defining revenue recognition
Creating milestones
Linking BOQ lines
Setting approval workflow
🔹 5. Why It Is Important?
✔ Controls financial risk
✔ Defines accountability
✔ Prevents scope creep
✔ Enables budget tracking
✔ Supports project billing
✔ Protects legally
🔹 6. In Construction Companies Like ASGC
They often use:
FIDIC based contracts
Lump sum contracts
Unit rate contracts
Design & Build contracts
