Running Head: Contract risks between Span Systems and Citizen-Schwarz
Contract Risk between Span Systems and Citizen-Schwarz
December 21, 2009
Contracts present risks and opportunities for both the offeror and offeree. I have identified potential risks and potential opportunities with our Citizen-Schwartz AG (Citizen-Schwarz). The identified risks and opportunities will assist us in our planning and our future planning with other clients. I have outlined measures that we can use to minimize or eliminate our risks. With respect to our Citizen-Schwarz contract I have evaluated each alternative and identified an appropriate approach we should take ...view middle of the document...
Post daily progress reports on extranet site for project managers at Span and Citizen-Schwarz to review.
In final preparation for negotiations I feel that there are three alternatives to discuss and present to Ther at Citizen Schwarz.
Breach under internal escalation procedures
Breach under communications and reporting
Breach under requirement changes
Listed below are the recommendations for the negotiations with Citizen-Schwarz. Span Systems has to take the necessary steps to minimize the impact on the relationship with the client and to do so, we should take the following steps.
Performance: “Citizen-Schwarz shall be entitled to receive all work products in progress or completed as of the date of termination or cancellation, subject to clearance of all payments due to Span Systems.”
This will protect the interests of Span Systems and will ensure payment of all work completed should Citizen-Schwarz decide to back out of the remainder of the contract. Change Control: “any changes to the user and system requirements originally agreed to will be monitored by a Change Control Board (CCB) comprised of the project manager and the lead software engineer from Span Systems and Citizen-Schwarz”
With the CCB in place, the change management request will be closely monitored as well as allowing for both companies to make a collaborative decision on the impact of change to the scope of the...