effective contract management
the challenge:
Our client, a leading fleet management company, had built up a
significant number of contracts covering differing periods and
service areas. Resultant disputes led the client to seek an
effective management approach to minimise commercial risk,
especially where the costs of providing the service were extremely
variable.
our approach:
We were able to identify the contractual issues which caused
disputes or once profitable contracts to become loss-making. In
addition to advising on new contracts, we created a database of
contractual terms and other key issues which clearly displayed
renewal and expiry dates for ease of management. This allowed
negotiations to start ahead of contract renewals, resulting in more
favourable discussions. We also trained the client’s team on risk
avoidance, negotiation points and contract management issues.
the result:
Our client was able to more effectively manage their large and
diverse contract portfolio through use of the newly created
database. The database enabled our client to take action in advance
of break clauses, reducing the likelihood of disputes. Those
responsible for negotiating the contracts were also informed of the
key risk areas and were equipped with strategies to avoid those
risks in the future.