- Do you fail to receive the value the contract promised at the outset?
- Do you find yourself getting into the same contractual arguments, over and over?
- Do your contract partners insist on including clauses that really shouldn't apply to you?
- Do you find yourself looking to shield yourself against possible contractual pitfalls before you have even begun?
Then remember the "3 Rs" of Negotiation
- Reciprocity - both sides should gain from the work. After all, who wants to work for nothing (or less than nothing)! A "win/win" result is where trust between the parties creates tangible value beyond the plain terms of the contract;
- Respect - Always show respect for the other party and never negotiate with someone who does not respect you. You will never achieve a true win/win result;
- Review - before you sign the contract, look at the final document. Does it give you what you set out to achieve? Is the value commensurate with the risk you will shoulder? Remember, no deal is always better than a bad deal!
Negotiating a good contract that both parties are confident to work with takes knowledge, skill and experience. BUILDING KNOWLEDGETM knows how to develop effective deals that really can work for both parties beacuse BUILDING KNOWLEDGETM has had hands-on experience on both sides of the contractual fence over 20 years in the industry.
Benefits of Contract Development
Having extensive experience across the construction supply chain, BUILDING KNOWLEDGETM helps you:
- Negotiate contracts on an even footing with your clients and suppliers;
- Reduce the time needed to conclude the deal, and therefore your costs;
- Set realistic and appropriate contract terms and performance measurements;
- Ensure that your contracts will be robust and flexible enough to last the lifetime of the deal.
BUILDING KNOWLEDGETM is not a law firm and does not replace your legal advisor. What BUILDING KNOWLEDGETM provides is the detailed construction knowledge that assists you and your legal team make the best decisions and tradeoffs through every step of contract development through areas such as:
- Due diligence reviews of the selected service provider;
- Statements of work and service-level agreements;
- Organization structure and processes to manage the new relationship;
- Contract terms such as pricing, rate structures, incentives and penalties, termination clauses and benchmarking requirements.
Once the contract is developed, BUILDING KNOWLEDGETM works with you to review the terms, identify potential risks shortfalls and ensure adequate provisions for change during the life of the contract.
Should you require, we can also conduct a price comparison study against similar deals with comparable risks to ensure you are deriving the optimum tradeoff between value and risk.
Engaging BUILDING KNOWLEDGETM delivers you:
- Faster contract development;
- In-depth application of contract and industry best practices;
- Assessment of the overall contract;
- Assistance in contract negotiation;
- Confidence in the scope and detail of the final contract;
- Better contractual relations and lower incidence of disputes.
To read a little more about the BUILDING KNOWLEDGETM approach to contracts and negotiation, read:
Are your favourite contract terms and conditions losing you value?
For a free, brief and strictly confidential consultation on how your firm can benefit from a fresh look at drafting your contracts, contact BUILDING KNOWLEDGETM