Contract Management: Contractual Performance, Renegotiation, and Claims: How to Safeguard and Increase Profit Margins

The book "Behavioral Economics and Digital Tools for Contract Management" discusses how contracts have evolved from legal necessities to tools for optimizing business relationships with customers. It emphasizes the importance of tight contracts, where time-risk and additional costs are passed on to the prime contractor. Good contract management involves preserving the rights of the contractor, providing advice, preparing profitable amendments, maintaining good record-keeping, filing notices, and guiding the project to a profitable conclusion. It also promotes a three-phase sequence to streamline information flows across the contract lifecycle.

Format: Paperback / softback
Length: 279 pages
Publication date: 31 July 2022
Publisher: Springer Nature Switzerland AG

The book delves into the latest developments in behavioral economics and the utilization of digital tools in contract management. Over the past decade, there has been a significant shift in the role of contracts, evolving from mere legal requirements to strategic instruments for fostering long-term, mutually beneficial business relationships with customers. Tight contracts, where time-risk and additional costs are transferred to the prime contractor, are gaining prominence, emphasizing the importance of performance and penalties. Contracts play a pivotal role in shaping the behavior of all parties involved, significantly impacting project success. The primary objectives of contract managers are to safeguard the interests of the company and its shareholders by minimizing financial and contractual liabilities while maximizing profitability. This involves a delicate balance between meeting end-user expectations and ensuring the company's long-term viability.

Contract management is a complex process that typically begins before the design is fully developed, leading to potential discrepancies between contractual specifications and customer desires. Effective contract management requires preserving the rights of contractors by ensuring that all parties adhere to their contractual obligations. It involves providing valuable advice to project managers and engineering teams, preparing profitable amendments to contracts or change requests, maintaining meticulous record-keeping in case of claims, timely notification of events, and guiding the project toward a successful conclusion.

Similar to the strategic game of Go, early moves in contract management can have far-reaching consequences, shaping the nature of potential conflicts down the line. By anticipating and managing potential disputes, contract management can help prevent costly arbitration proceedings and maintain positive partner relationships.

In conclusion, the book presents a comprehensive exploration of behavioral economics and the digital tools applied to contract management. It highlights the transformative role of contracts in modern business, emphasizing the importance of tight contracts, effective dispute resolution, and long-term partner relationships. By understanding the dynamics of contract management, organizations can optimize their operations, enhance profitability, and build sustainable relationships with their stakeholders.

Weight: 456g
Dimension: 235 x 155 (mm)
ISBN-13: 9783030680787
Edition number: 1st ed. 2021