Redefining Your Contracting Practices For Successful Post-pandemic Commercial Relationships

During the most acute periods of the pandemic, parties were managing their commercial arrangements in crisis management mode as the disruption of COVID-19 rippled through the supply chain.

Suppliers monitored developments in real time to gauge their ability to fulfill contractual obligations. Customers likewise assessed the risk of non-performance by their suppliers and the potential impact of non-performance on their business, and whether there was enough cash on hand to pay for services. Advisors helped clients prioritize material contracts and understand their rights and obligations.

As the dust settles, parties should be taking stock of their crisis response performance and ensure that the short-term accommodations put in place during the crisis are properly embodied in amendments, change orders, addenda and side letters. Parties are also implementing changes to their contracting processes to reflect the lessons learned from negotiating new commercial