Claims & Disputes

When it comes to international contracts there are only two main reasons for ´claims & disputes´:

bad preparation

and

ignorance of the contract conditions.

From the view of the project management it is worthless to discuss what should have been foreseen during tender stage. It is assumed that a lot can be optimized during tender stage; nevertheless the signed contract is the definition of the project.

Bad preparation being the most relevant reason for any projects failure therefore does not refer to the tendering phase as such; it is usually the lack of preparation of the project management unit for the type of contract and the real scrutiny of the factual requirements. Often the Contract conditions do require an interactive performance not meeting the company internal procedures. Adherence to the established procures are merely producing conflicts with the new contract, are time consuming, expensive and almost never successful.

An initial true scrutiny about the factual requirements of the contract are an essential for any successful start of the new venture; as a matter of fact external advisors are preferred for such analysis as the knowledge of the company’s internal rule to not support the plain contract understanding. As a second step it might be possible to make a balance between two different approaches.

Once started the contract typically requires certain action for certain situations, which might be seen as an option, usually a fatal misunderstanding on the long term consideration. The project team should be motivated and enabled to make use of all measures defined or implied in the specific contract. Experiences from other projects are helpful but no substitute for proper knowledge of the specific contract in detail.

MCE-CONSULT AG provides experts and experience for both, the initial contract review and the guidelines tailored for the unique project; preferable acting as a member of the project team, success is our aim.

Contact us.