Have you issued an RFx recently and:
- had no responses, or
- all responses are too expensive, or
- the only respondents are under qualified, or
- all of the above?
If so, your contractual risk allocation provisions may be the root cause.
Times are changing, market forces are constantly shifting and vendors are becoming more selective about the opportunities they respond to. Your procurement documents and proposed contractual terms often make or break the competitive tension that you attract. In most industries today, notably construction and IT, there is a shortage of companies with the skills and depth of resources needed to handle your more complex requirements and tight time frames. Vendor companies scrutinize every opportunity not just for fit with their core capabilities, but also for proposed contractual provisions that fairly balance risk and reward. Perhaps you are paying a risk premium or deterring the most qualified companies simply because your organization uses outdated provisions that unnecessarily shift too much risk to the vendors.
If you feel that yesterday’s templates do not fit with today’s market, then you should consider scheduling our private eSeminar that addresses contractual risk tolerance strategies. This fast paced interactive webinar takes a deep dive into contractual risk allocation strategies, including indemnification and limitation of liability provisions, as well as breach of contract terms and warranty provisions. We break down the language, look at specific examples and recent court cases, as we discuss factors such as project context and complexity that should inform your decisions on risk allocation. This session will equip you to have meaningful conversations with your own legal advisors or other subject matter experts about ways to adjust contractual provisions that will attract high quality responses while still providing sufficient protection for your organization. It is a delicate balancing act and organizations that get this right will increase their project success rate while building quality supplier relationships with the best of the best. Learn how to stand out as an owner of choice in today’s market.
Readers are cautioned not to rely upon this article as legal advice nor as an exhaustive discussion of the topic or case. For any particular legal problem, seek advice directly from your lawyer or in-house counsel. All dates, contact information and website addresses were current at the time of original publication.