Contract Performance Management

We represent retail investors seeking equity investment opportunities as well as ship owners seeking joint venture financing.

Expertise

Contract Management

Compare a business transaction to marriage. Consider entering into a marriage without having any knowledge or understanding of the promises you make to your partner and vice versa. Yet, everyday businesses create binding contracts without a proper understanding of what binds them. 

  • Overview
  • How it works

The most effective strategy for disputes prevention and promoting efficiency in your business is to understand your contractual obligations and the long-term risks of non-compliance. After lawyers rigorously negotiate what their clients will and will not do, the contract is signed, sealed, and stashed away. The more important the contract, the more securely it is filed, but almost impossible to retrieve. If you cannot retrieve it, why retain it? 

Companies securely stash away important contracts, which instead should be their daily point of reference.

Contract Performance Management advice aids in identifying, evaluating, and managing contractual rights and obligations. By starting with contract management, clients ease contract negotiations and contract creation; prevent disputes, and allow for effective risk management.

Every corporation has some form of contract management processes. We begin by auditing your existing process. If possible, we optimize your existing processes and optimise it to cause the least disruption.

REVIEW

First, we categorize your contracts based on their strategic and financial significance. For each contract, we fully document aspects that will cost and aspects that compensate.

We define the contract responsibilities. Who is in charge of the contract creation, the contract approval, the storage/archiving/reporting, renewal, and destruction of contracts?

"According to a survey conducted by The Global Contract Management Association, companies lose on average 20% of the value expected from a contract, 12% on hard leakage (e.g. invoicing errors and price adjustments), and 8% on soft leakage (eg. delivery failures, poor experience)."

Contract Playbooks

Playbooks provide legal and business explanations for all contractual terms, define pre-established fallback positions and outline clear escalation protocols.

Tip

Contracts must be stored in one place, have one copy, quick retrieval and limited-time retention after project closure.

Related: Contract Playbook
Fareya Azfar

Fareya Azfar

PARTNER

f.azfar@fareyaaraoui.com
+971 56 705 8483

Every contract has a quantifiable economic value. The primary sources of value leaks are: 

  1. disagreements over contract scope.
  2. failures due to over-commitment.
  3. weaknesses in contract change management.
  4. performance issues due to a dispute over what was committed.
  5. missed expiration dates or deadlines.
  6. Doing more than the scope of agreed obligations.
  7. Not knowing or utilizing your rights.
Self Assessment
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