On the road to achieving your company’s outcomes, some hurdles have to be taken. Contract Risk Scoring tools are there to identify the commercial & contractual hurdles that may stop you from achieving your outcomes. They allow you to take consistent decisions: Go/No Go decisions, mitigation actions, acceptable liability levels, provisions, margin levels etc. Please read this post for more details.
This is a case study of a multicultural negotiation for a privately developed concession to build and operate a hydro-power plant during 30 years. The discussions came to a win-win subject: the specific advantages for each of the stakeholders brought by early generation. This created a positive atmosphere during the negotiations based on trust, respect, transparency and pro-activity. This atmosphere was also beneficial to resolve other subjects that were not themselves win-win situations.
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.