IACCM, the International Association for Contract & Commercial Management, is promoting that we would start risk scoring our contract portfolio. Here is an extract of what they state on their website:
We’ve all heard stories about bad contracts that caused a crisis, cost a fortune and killed careers. Yet despite these scandals, most people still have little insight into the good, the bad and the ugly of their own contract portfolio. Many of us will still suffer serious financial pain because of contractual weakness that reveals itself too late. But what if we could get ahead of the problem? What if we could analyze, measure and score our contract terms, and flush out the weak links? Well now you can.
With contract scoring, […] you can benchmark your contracts against your peers and demonstrate measurable improvements in performance. You can ensure that higher risks are factored into pricing and commercial decisions. And you can demonstrate how contracts make hard, measurable contributions to the financial performance and health of you business.
At AfiTaC we fully agree with the above words. Even more, with TRaCRs, the Tender Risk and Contract Review system, we have developed a tool for contract scoring. This tool will rate your contract on 20 different subjects from 0 (very low risk) to 5 (very high risk) enabling you to identify the problem areas, subject by subject, and also in the aggregate for your project. A score below 30 means the contract has low risk. Between 30 and 50, we find the projects with moderate contract risk. Above 50, we can speak of a high risk project that should be followed-up with special care.
We recommend you to:
- Access the free tool at the following link: TRaCRs
- Read our previous post on this subject: Manage your risks like “the big boys & girls” do!
- Follow us on LinkedIn to read any future communications we will make on the subject: LinkedIn Company Page
In case you would like a demo on your specific contract, the AfiTaC team is willing to fill out the tool with the relevant answers for your contract for the 5 first candidates that request us to do so on the following e-mail: firstname.lastname@example.org. Free of charge, of course!
By doing the above actions, at AfiTaC, we hope that we can contribute to your objective to negotiate and execute balanced contracts. Please don’t hesitate to write us, in the location foreseen here below, with any reaction you have on this subject.