Tag: managing risk

Money-back guarantee

This is the best contract I have ever received if at any time you are not happy with my services, we can walk away and I will not charge you. It said everything I needed to hear succinctly and clearly. Your contract needs to state the scope of your services,

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Lessons from failure: check the technical data

I would like you to (1) learn from the failures of others (the quickest, cheapest and least painful approach) and (2) embrace the idea that failure is not optional – it is your best friend. Lesson: check the technical data In November 1999, NASA lost a $125m satellite, the Mars

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Simplify your contract strategy

The organisation Clarity is brimming with lovely lawyers and legal consultants fascinated by how we can simplify legal documents and overcome the barriers to changing traditional drafting. After a recent meeting, Cathy Wilcox introduced me to the Pathclearer project, and its developer – Steve Weatherley then Head of Legal at

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Lessons from failure: have a contract strategy

On a simple house refurbishment project in Putney, London, Mr & Mrs West ended up with an extended house with no proper waterproofing, serious defects in the plumbing and all the newly installed M&E services needing replacing. Disaster! When planning and creating their contracts that the clients were failed by

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Set reasonable delay damages

Liquidated (or delay) damages are pre-set damages (listed in the contract) which make it simpler and quicker to recover compensation when the other party to the contract defaults or commits a breach. One such example is the notice from a hotel chain to charge £100 if a guest smokes in

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A more reasonable limit: offer alternatives

One of the hardest items in a contract to draft effectively is any limit on your liability. Some of the reasons are: they get a lot of focus in the courts who interpret them strictly i.e. the court will only allow you to rely on a limit if it is

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Remedies for late payment

You can use your contract to describe what you want to happen if something happens which is outside the original contract: you can include delay damages if the provider is late you can include a mechanism to change the scope if the client changes her mind you can include a

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Certain terms in your contract

When writing your contract, you should create clauses which are certain. It is one of the five essential elements for a binding contract (see What You Need). The courts will not enforce  a clause or term if they cannot be sure what it means. Limiting Your Liability In Trebor v

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A slate engraved sign at a play park saying that if "offers great opportunities" and "the exposure to reasonable risk enables children to develop the skills they need throughout life" (a quote attributed to David Yearly of the Royal Society for the Prevention of Accidents). Photo by Sarah Fox
Sarah Fox

Review your contract: risk

The final element in my STAR analysis is Risk. Risk v Reward When reviewing your contract, you need to strike a balance between risk and reward (harm v benefits). Risk is inextricably linked to price and cost. If your deal seems too good to be true, it often is! In

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Using a net contribution clause

As a supplier on a construction project, English law allows you to use The Civil Liability (Contribution) Act 1978 to pass on some of the losses claimed against you. You can ask for a contribution from any other contractor, supplier or consultant who is responsible for the same damage [see

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