The tip for today is: Keep the contract scope under review
🚨 If the services/deliverables are likely to change over time there could be value in including a mechanism for an annual (or more frequent) review of them.
🚨 Where the services and the deliverables evolve over time, the changes to the scope should be recorded in a contract variation or change control notice.
🚨In yesterday’s tip we looked at the case of High Court case of RMK Maritime (Europe) Ltd v CMB Tech NV. The case reminds us that if the contract says changes to scope need to be confirmed in writing, it is essential to follow the process in the contract. Otherwise there is a risk the supplier won’t be paid for any additional work carried out.
🚨When negotiating your contracts, think about whether you can include a contractual tool to protect your business. If you’re the supplier, can you include a change in law clause or a hardship clause to help if contract performance becomes more expensive as a result of tariffs or regulatory changes? If you’re the customer, can you agree to fixed pricing for an agreed scope?