Span Systems Memo

This memo is to inform you that contractual issues between Span Systems and our client Citizen-Schwarz AG (C-S) have lead to amendments to our current contract, which will result in significant changes with regard to how we will continue to conduct business with C-S in the future.   These changes affect our current policies and procedures as they pertain to our current project model with
C-S.

Citizen-Schwarz AG is claiming a breach of contract due to the substantial performance clause between our companies.   This action is the direct result of our subpar progress with the project as well as the unacceptable quality level of goods we have delivered so far.   Through research, I found that this is the result of our company’s ineffective communication model and has resulted in a liability for the company.

In addition, Citizen-Schwarz AG is claiming breach of contract under the requirements change clause.   They are claiming we have not kept up with, what they feel to be, ordinary changes as defined in the contract.   I found that the current contract states we are required to comply with ordinary requirement changes but to date; the changes that Span Systems has received have been anything but ordinary.   These unordinary change requests have resulted in a delay of our production; have affected the quality level of our services, which have created a production liability for our company.  

Since a mutual agreement between both companies is preferred and after lengthy negotiations, we agreed that amendments to the current contract were the correct course of action for both parties.   The new contract now includes the completion of daily project tracking reports that will be uploaded to our extranet for C-S to review.   This addition is a benefit to both Span Systems and C-S as it will now assist in ensuring both companies communicate more efficiently and will minimize or eliminate the communication model liability for Span Systems.

Throughout our negotiations,... [continues]

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