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ARTICLE · 17 MAY 2015

Today's solution to yesterday's deal: managing difficult contracts part 2

Some problems with a contract can be caught before they even happen, and can be managed to keep the project on track.

AustraliaCorporate/Commercial Law

Key Points:

Some problems with a contract can be caught before they even happen, and can be managed proactively to keep the project on track.

We've seen that there are ways to persuade a mediocre contractor to lift its performance. But sometimes persuasion alone may not be enough – sometimes you may need to resort to legal remedies. Understanding your legal remedies and being able to articulate them can often assist attempts at persuasion.

It's also useful to have a Plan B (which might involve escalating legal remedies) in case Plan A doesn't work. If legal remedies are part of that Plan B, you'll need to understand how they work and take the practical steps to maximise their potential effectiveness, and put yourself in a strong position to achieve a favourable outcome. Renegotiation might also be a better option.

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