An interesting conundrum. Let us assume that the change order process has not been defined in sufficient detail to address this situation precisely.
It would appear that there is scope for negotiation of a mutually acceptable outcome. The most important thing is to discuss the issue openly, as it is unlikely that there is a hard and fast rule to fall back on.
This issue highlights the importance of post-award governance and relationship management.
The issue here is more of a matter of fact. Do you agree with the opinion of owner that the variation requested by you earlier is actually within the original scope of contract? If so, the matter ends there. Even if you do not agree but contract is clear that the so called variation requested is actually part of original scope, owner can always withdraw the approval (of variation) as the 'variation' was non-existent from beginning.
However if the contract is not clear and there is disagreement whether or not the work is a variation, then it boils down to negotiation on the scope of variation and its implications.
As Nicholas indicated in his reply, this issue highlights the need for clarity in scope of work (pre-contract stage) and post-award contract governance.
If I read your query correctly, the baseline would usually be the "before" benchmark against which benefits will be measured. This is often the 12 months average before a new agreement is entered into.
In the case of Application Maintenance, perhaps this might include number of calls, number of patches, uptime/availability, and cost.
I hope that helps.
• Sun Pharma
For each item that you sell, you can define the base price at which you want to sell it. The system retrieves this price when you enter an item on a sales order.
You can define the base price for an item or any combination of items, item groups, customers, or customer groups. To simplify the process of defining and maintaining base prices, you can set up price groups for customers and items with similar characteristics.
When the system retrieves prices, it uses the hierarchy for the Base Price Preference to determine the order in which the system searches for base price records. If you create item and customer groups, you can define the search sequence of the Base Price Preference Hierarchy so that the system searches item and customer group combinations and item and customer combinations.
• Cobham PLC
Very simply the baseline can be anything you agree with the other party. Then you agree to vary the price up or down at certain times based on certain criteria.
Examples: Baseline user headcount 1000. Baseline Price £7500 per month. Monthly variance +£5 per net added user.
Month 1: 900 users = £7500
Month 2: 980 users = £7500
Month 3: 1021 users = £7605
CPECC, Sudan from 2009 to till date
First of all, condolences to you and the family members related to your colleagues. It is a very tragic story.
In my personal opinion this is similar to terrorism, which is a commonly cited FM event. And therein lies the challenge. Unless the incident is cited in the clause language, there will usually be a uncertainty due to personal opinions and an ensuing debate. While I personally think it qualifies, someone else might not. Thus, this is why so many events are listed in the typical FM language. After each unfortunate instance the litany of examples grows by one, as parties want to ensure they avoid this debating scenario again.
You might want to factor into your analysis that in today's market there tends to be specific terrorism insurance. This may imply that a general insurance policy will not apply.
This might be an instance where a seasoned professional who has perhaps encountered a situation like this can provide a more specific response based on actual prior instances. So, please do not interpret the above comments as legal nor professional insurance advice.
Timothee - could you please be a little more specific around the analysis you are anticipating? There are templates, procedures and tools for completeness, such as clause checklists; tools for risk such as analytic software; tools for clarity and a range of other aspects.
• Horisis Conseil
Jim, thanks for the reply
I am looking for something helping me to have a global view on the main obligations. And to be able to do a contract awareness and therefore determine the contractual strategy
Timothee - the annual IACCM Top Negotiated Terms report should help you. It brings in the global perspective and points out regional differences. The commentary should assist you in developing strategy. The current year survey is now underway. You are encouraged to participate in it at www.research.net/r/20162017TopTerms, as you will be one of the first to receive the related report.
Take a look at Contract Standards. We use this tool to analyze client templates and contracts to prepare an outline of all the terms across the set, identify which terms are used consistently and which terms represent atypical/one-off language. From that, we are able to understand what an organization has historically negotiated and help to construct better, more consistent templates and playbooks.
I guess you need to establish key assumptions and/or minimal functionality or license metrics you need to achieve before you have anything you can benchmark against. Once that is established, you can ask for alternative software solutions which solves your need and then incentivize the best price found. Further you could measure the fulfillment of the key assumptions and have a payment attached to each of them. If the solution is going to introduce a certain workflow you could set pricing according to how fast it is implemented or how much money is saved/earned. If there is a license price and a T&M project, you could say have a differentiated discount scheme based on the number of hours spent. I.e the first X hours are paid at 140%, hours between X -Y are paid at 100% and hours after Y are paid by 50%.
I recommend you look at this article "Time and material vs Fixed price: hot discussion of the best pricing model" - www.cleveroad.com/blog/time-and-material-vs-fixed-price--hot-discussion-of-the-best-pricing-model
Firstly, I suggest to draft a SWs Portfolio document, which will list all the required SWs. SW portfolio will consist of details like SW name, description, area of application, criticality, user applicability, SL% requirements and other optional technical details like program language etc. Each of the listed SWs may be given a percentage split of charges between various applications, summing up to 100% (in this case DKK 0,5 M is 100%). This document can be kept open for addition/deletion for SWs.
Whenever Supplier adds/removes a SW this % split can be used for commercials/invoice purpose. For eg: a SW which falls between 10-25% will have 2% incentive, SW with 25-50% will have 5% incentive etc.
Secondly, SLA is completely depends on how you want specific SW to work for you. In the portfolio, for eg: if some SW is impacting critical users or functions you may set the SLA to required higher percentage and flow-down those SLAs to OEM as well. Also, I would suggest to a research on Pass-through charges, in which the supplier charges a fixed % incentive, but this is possible only if the SWs are fixed.
It is important to remember that an agent represents the principal and is therefore not a separate contracting party.
I would seek validation / evidence that the agent is indeed authorised to sign on behalf of the client. Once you are satisfied, in my opinion you should not in any way create separation within the contract since for this purpose the agent is the client. By naming them separately you simply introduce confusion.
Have you checked with the client as to why they want the contract to be signed by their agent? It will be worthwhile to ask this question and satisfy yourself with the answer. Even if there are some genuine reasons, you should also seek expert legal opinion based on Saudi Laws. Besides, be careful about the documentation.
Hi Ingrid! This is certainly an interesting topic we could be handling and covering in our Community of Interest (Small businesses and start ups) where situations and scenarios like the one you described take place very often. In our IACCM library we have been reading articles about challenges of small / under-resourced contracting organisations or teams, such as this: www2.iaccm.com/resources/;
Apart from listening to other views in this forum, I´d definitely recommend to include this subject in our future CoI call with you and Robert Bradshaw. Thank you!
Ingrid, the problem you mention isn't limited to small business. Many large corporations suffer from a similar quarter-end 'banana curve'.
One approach is of course to review the demands from the perspective of groups or patterns. For example, how much is unique and how much is repetitive? Look at each of the repetitive issues and consider whether you could handle it differently - perhaps preparing materials in advance or empowering Sales with some standard materials they can use, or educating them (in one of the quiet periods).
Picking up on Pablo's point, I know some members who have tackled this problem and perhaps we can get them to do a webinar that discusses their solutions.
• Inaccord AG
Sorry, Pablo, I tried twice to post in the SMB group, but can't explain why my post ended up here.
Tim, I agree with your suggestion to identify patterns in the work and come up with approaches that use templates and adapting processes to offload the contracts team. While a large organisation may share some of the challenges of an SMB, it will have advantages, such as the ability to enforce its standard terms, established processes which can be built upon, and possibly funding to bring in short-term resources to handle peaks. I would like to start a discussion about these challenges and how different companies deal with them. A webinar sounds like a great place to start. Thank you.
In the interest of full disclosure, I do represent a Contract Management product from Symfact. I would like to offer the following checklist of items that you might want to consider as a start to defining your needs. These are not product specific and as such they should help in at least getting your arms around some of the major requirements you might have. By answering as many of these as you can it will put you in a good position to do an initial screening of CLM software providers. If these items resonate well with you and you would like to receive the a full explanation of each of the items please do send me an email (firstname.lastname@example.org) and I'd be happy to send it over to you. Good luck.
• Project Goals: What are the main goals or objectives that you would like to see as a result of implementing a contract management system?
• Process: At a high level what is your current CLM process and what is your ideal 'to-be' process?
• Contract Authoring: How many contracts are created on your paper versus third party paper?
• Version Control: Is it important to maintain the versions of the contract as you go through the internal collaboration and the external negotiation of the agreement?
• Workflow: Do you have approval workflows that are based corporate policies and procedures or perhaps based on specific business rules such as monetary value, contract type, location, etc.?
• Infrastructure: Are you looking for hosted or an on-premise installation?
• Technology: Do you have any corporate architectural standards that need to be adhered to?
• Integrations: Do you need to integrate to your sales system, financial system, price quoting, Active Directory or other authentication tools, or other line of business system?
• Licensing: Do you have a preference or need for an annual license (operational expense) versus a perpetual license (capital expense)?
• E-Signature: Is this something you may need now or want to have available for the future?
• Data Conversion: Do you want to migrate your existing contracts (data and documents) to the new system?
• Request Questionnaires: Is this something you need to start the contract process?
• Contract Types: What types of contracts do you want to manage: buy-side, sell-side, non-monetary, etc.? As part of this you need to plan out what data you need to track and how much the data might vary by Contract Type.
• Tracking: Do you need to track financials, commitments, performance, or KPI's, etc.?
• User Access/Security: What are the major groupings of user types that would need to access specific functional areas of the application?
• Obligations: What are the governance, compliance, commitment of performance or quality, and other types of contractual obligations that need to be tracked and managed?
• Related Agreements: Are there any unique needs that you might have with regards to amendments, sub-contracts, or related agreements?
• Searching: What are your searching and reporting needs?
• Multi-language/Multi-currency: Will the system be used in different parts of the world?
• Customer and Vendor Data: Will the base information (i.e. legal name, address, parent company relationships, contacts, etc.) be created and managed solely within the contract management system or will it be populated (via an interface) from your ERP and/or your CRM?
There are several good contract management tools available in the market that will help you automate the process of creating the contract. However, in order to realize the full value of a contract, it needs to be actively monitored and governed during the post-signature/in-life phase of the contract. Unfortunately, the traditional contract management technology offers limited post-signature management functionality.
My organization, SirionLabs, offers a SaaS contract management product - Sirion, which gives you unprecedented visibility and control in your supplier and client contracts during the post-signature phase enabling you to ensure that the desired business outcomes are achieved and savings/revenue opportunities are maximized.
Our unique approach to contract management has been recognized by leading analysts including Gartner and Spend Matters. Our contract management product is used by leading organizations including Vodafone, Vestas, UCLH, and several other Fortune Global organizations. Further information about Sirion is available on our website www.sirionlabs.com. If you would like to request additional information or see a product demo, feel free to write to me at email@example.com.
Full disclosure: I work for Apttus, a Contract Management vendor. You can find a good list of enterprise Contract Management providers in the Wave report from Forrester Research. You can download it off our website for free. I hope this helps you learn more about the options out there.
• GSK Vaccines/ Infosys
Detailed check list Dan.
Indeed, I do not represent any of the Contract Management software providers, but I used few of them and strongly recommend Gatekpeer, more information about Gatekpeer is at : www.gatekeeperhq.com/ free demo and free trial is available as well.
Thank you for reading,
I represent Sysintellects and we have a contract management software, we call it CMx.
Here are some helpful information about CMx and how it can help your company in regards to contract management.
- Central Contract Repository & in-built CLM
- Strong Security
- Analytics, Audit Logs & Report
- Easy Configurations,Permission Settings,Reminders & Integrations
- Contract Review & Approval Work flow
- Contract Creation and Redlining
- Grows with your business and immediate ROI with no customization
- Self Service Import & Export
You can also check our website at www.contractexperience.com for more details.
Would you like to do a free trial of our product? I can set you up for a no obligation free trial.
You might want to consider redrafting the contract and service level to make this clear and explicit. Your statements that you are preparing a defense and are interested in streamlining this conflict lead one to assume that this has caused a dispute. If so, then resolving the dispute and preventing it from returning through greater clarity and completeness is highly recommended - as it would be beneficial and of common interest to both you and your client.
With the spirit of continuous improvement and preventing problems (rather than correcting problems), your client will most likely welcome the opportunity to redraft the contract and service level.
How have you been classified by this client and what type of relationship do you have?