Effective change process

A few years ago, we took our kids to Paris and promised them a trip up the Eiffel Tower. Our timing could not have been worse… it was mother’s day and the Tower was rammed.

As the queues for the lifts were extensive, and we’d have ended waiting for hours, we did a deal: we climb using the stairs in return for an ice-cream. Of course, my kids are ace negotiators so they didn’t want soft scoop, whippy stuff – they insisted on proper ice-cream.

After our descent, we couldn’t find any ‘proper’ ice-cream… after some retrospective haggling over possible alternatives, we ended up walking for miles and then spending a small fortune on (admittedly) extremely delicious proper ice-cream at a café on the Champs Elysees.

Be flexible

Just like our promises that day, your contracts need flexibility – for a wide variety of events or triggers (including sanctions, pandemic restrictions, material shortages, wars or trade tariffs).

Your change process must be simple and easy to follow – if not, it won’t be used.

Ideally (as no-one likes a surprise bill) you should both agree the impact of changes, on key project objectives (time, cost, performance etc), before those changes are implemented. It also allows the client to choose between the original plan and the revised proposals, and decide if the impact on their key priority is acceptable.

Grab your current contract and check off these requirements for an effective change process:

• Can both client and supplier propose changes? Although many are driven by client decisions, the current climate means suppliers may need to change the design, timing, specific goods, and prices.
• Does the clause allow you to agree changes for events beyond your control ie the unexpected? This is increasingly important.
• Are changes limited in scope, price, time or quality? Any restrictions should reflect your business strategy. Remember under English law, changes cannot change the nature or character of the contract.
• Do you want to allow the client to remove goods, works or services? If so, ensure the supplier is compensated for omissions eg using pre-agreed damages.
• What process do you need for your governance: who has authority to instruct changes? can it be verbal or must it be in writing? Make it easy to use to avoid ending up in limbo!