Another thought provoking piece by Tim Cummins, CEO of IACCM, on contracting, which I sign up to.
Why do corporations fail to answer these questions and why do they not do so much about it?
- What percentage of our contracts underperform – and why?
- What is the economic impact of different contract models or terms?
- What are the relative probabilities of the risks we seek to mitigate through our contracts?
- To what extent can high failure rates in major projects be reduced through improved contracting practices?
- What are the best models for performance-based contracts?
- How does contracting performance at your organization compare with competitors?
One response to these questions is to say that the answer lies in the hands of the gods. Another, more common, is to say that it is someone else’s responsibility (and therefore, by implication, suggest that contract and commercial management are simply short-term administrative tasks, generated by the errors or ignorance of others).
A growing number – and including Tim put himself among these – are determined to find answers, publish them and build the body of knowledge that elevates the discipline of contract and commercial management.