Recognizing Contract Risk and Opportunities Memo
Law 531
Dr. Gregory Schumacher
July 31, 2010
MEMO
Recently we have suffered an internal breakdown in communication between C-S and Span. The professional relationship has become strained, and we are currently in negotiations to rectify the situation, and to eliminate the possibility of legal proceedings.
We have identified several breaches of contract. These are mainly Breach of Contract under `Internal Escalation Procedure for Disputes’, Breach of Contract under `Requirements Change’, and Breach of Contract under `Communications and Reporting’. In an effort to resolve these issues, we will address the risks and opportunities of each Breach individually and attempt to identify and determine any further ambiguities.
A direct factor that has subsequently led to the `Requirements Change’ Breach of Contract was the breakdown of the internal escalation process at C-S’s end, which resulted in Breach of `Internal Escalation Procedure for Disputes’, our first item to address. C-S has seen a complete turnover of project managers, and instead of coordinating and addressing issues with us in a timely manner, and allowing us to remedy the situations, they have instead immediately escalated into a potential contract rescission. We feel this is not the best solution, and instead think we should identify the problematic issues and attempt internal resolution.
When we identified Breach of Contract under `Requirements Change’, it was due to the quality of our software being scrutinized. It is true we are not entirely `bug-free’, but we strongly feel that the pressure of maintaining our deadlines was a direct contributor to the issue. We have had much difficulty meeting our deadlines, in part, due to the restructuring of C-S’s project management team, and also the alteration of the original user and system requirements. While C-S is in direct violation of our contractual clause to notify us of `ordinary changes to... [continues]
Law 531
Dr. Gregory Schumacher
July 31, 2010
MEMO
Recently we have suffered an internal breakdown in communication between C-S and Span. The professional relationship has become strained, and we are currently in negotiations to rectify the situation, and to eliminate the possibility of legal proceedings.
We have identified several breaches of contract. These are mainly Breach of Contract under `Internal Escalation Procedure for Disputes’, Breach of Contract under `Requirements Change’, and Breach of Contract under `Communications and Reporting’. In an effort to resolve these issues, we will address the risks and opportunities of each Breach individually and attempt to identify and determine any further ambiguities.
A direct factor that has subsequently led to the `Requirements Change’ Breach of Contract was the breakdown of the internal escalation process at C-S’s end, which resulted in Breach of `Internal Escalation Procedure for Disputes’, our first item to address. C-S has seen a complete turnover of project managers, and instead of coordinating and addressing issues with us in a timely manner, and allowing us to remedy the situations, they have instead immediately escalated into a potential contract rescission. We feel this is not the best solution, and instead think we should identify the problematic issues and attempt internal resolution.
When we identified Breach of Contract under `Requirements Change’, it was due to the quality of our software being scrutinized. It is true we are not entirely `bug-free’, but we strongly feel that the pressure of maintaining our deadlines was a direct contributor to the issue. We have had much difficulty meeting our deadlines, in part, due to the restructuring of C-S’s project management team, and also the alteration of the original user and system requirements. While C-S is in direct violation of our contractual clause to notify us of `ordinary changes to... [continues]
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