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Do these issues sound familiar?

November 13, 2017
How often do you encounter some or all of these causes of contract under-performance?
1) Failure to establish and / or communicate clear objectives is a major issue in subsequent contract negotiation and contract management, causing delays, disagreements and loss of value.
2) This lack of clarity, often accompanied by late engagement of commercial resources and the imposition of industry or corporate standards, frequently contributes to the use of risk averse contract terms that distract from establishing key performance criteria and processes.
3) Problems with defining project scope cause subsequent disputes and disagreements over change management, charges and payment.
4) The use of traditional, legally-driven forms and documents renders most contracts of little practical use to
delivery teams and project managers, thereby undermining their primary value as instruments of communication and understanding.
5) Few organizations appear to make effective use of past contracts as a source of learning. Procurement contracting is especially weak in this regard.
6) Only 16% of respondents feel that their contracting process ‘always’ achieves a positive impact on the relationship between the parties – suggesting there is major opportunity for improvement.
And the consequence is …..
According to the experts surveyed for IACCM’s ‘Attitudes to Contracting’ report, these weaknesses in the approach to contract terms and negotiation have a major impact:
63% report that they are frequently a cause of cost overruns
59% report that they are frequently a cause of project delay
28% report that they are frequently a cause of reduced future business opportunities
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