You have read books, articles, blogs on contract negotiation. Or, even better, you did a real training programme. All have praised the importance of win-win negotiations. There you find yourself in your next tough negotiation. All the discussions are on limits of liability, caps for liquidated damages, rights to terminate the contract etc. Subjects where a bit more protection for one party automatically means a bit less for the other party. You hesitate. Are those articles or training courses not realistic, not worth your time & money?
No doubt, we would all want to hear that, after a long day of negotiations, the best is to go out, eat some delicious food and have some beers in a bar because you deserved it. Negotiation is a challenge that can be compared to professional sports. It requires anticipation, recuperation, communication and these things take a bit of your precious time. This article provides 6 essential things to do after the formal meetings.
Having some data on which the Contractor may rely (reliance data) is a good industry practice and in line with the usual contract standards. The difficulty starts when we want to precisely identify the “reliance data”, “baseline data” or whatever word is defined in the contract to introduce the same concept. This article proposes a “black box” approach.
A few decades ago, making a statement as the title above, in my engineering environment, would not have been good to build your credibility. Now, things have changed. Wind and solar energy have reached a stage where their installation is economically viable.
Could we go all the way, thinking about a society where only renewable energy would be acceptable?
Unless less you are a contract expert with a solid experience and capacity to compare, in your head, against benchmark contracts, you will have a hard time to give a solid opinion on any contract and identify risk areas after a first reading,
This articles proposes a free tool to analyse contracts. For twenty questions, carefully chosen to cover the whole spectrum, the risk level of the answers is positioned on a scale from 0 to 5.
Based on the report that will be provided, you can then set-up a Risk Review board.
More than 30 years have past since the launch of FIDIC 1987, “yellow book”.
In the meanwhile, FIDIC has published newer versions: the well-known 1999 version and a fresh update at the end of 2017.
This article is a reflection on whether it still makes sense to use the 1987 versions.
Working on an EPC Contract brings higher risks for Contractors. They have to face all the circumstances that occur during the Project execution, with few exceptions, and still achieve the expected outcome or intended purpose. Is there anything that can counterbalance this exposure to make the project a success? Yes, the opportunity to optimize the EPC scope on the Project.
EPC, standing for Engineering – Procurement – Construction, is a widely used term but not always correctly and these three words do not necessarily make us a lot wiser.
The relationship between Employer [or Owner] and Contractor, when an EPC Contract is correctly established, should be in accordance with certain principles listed in this post.
In this blog specific topics are analysed regarding Contract, Commercial and Project Management. Articles will cover terms & conditions, negotiation, standard contracts (like FIDIC, NEC3, World Bank), specific contract types (EPC, Design & Build) etc.