Recommendations for additional contract dispute strategies
MEMORANDUM
Date: 4/30/07
To: Negotiator
From: MBA560 Team C
RE: Recommendations for Citizen Schwarz AG contract dispute strategies
Having settled the contract dispute with Citizen-Schwarz AG, we would like to review the events and decisions made to resolve the contract dispute, and offer recommendations for dealing with similar contract disputes in the future.
Review: The venture encountered problems approximately eight months into the project. The company was confronted with serious customer issues concerning quality, deliverables and our ability to keep on schedule. Fulfilling the client requests beyond the original agreed upon project, we modify the contract. The contract clauses that favored us, we attained sufficient proof of performance evidence to convince Citizen-Schwarz of our performance.
We recommend proactive procedures to assist Citizen -Schwarz accomplish its business goals.
A fine of $50 per day for late deliveries
Through contract negotiations we can resolve the contract dispute. Citizen-Schwarz reconsidered their decision to rescind the contract and agreed to renegotiate the contract as per agreed terms. There’s a possibility we might get the e-CRM project as well.
We feel that the outcome of this case was a positive one. While we could have litigated for a resolution of the issues we first ran into, doing so would have been a losing situation for both parties for two main reasons:
1. Our business relationship would have been destroyed.
2. The costs of litigation, and the time involved would have left this project unfinished for a long time.
To continue to perform services under this contract.
The Contracting Officer may exercise this option by issuance of a unilateral contract modification 30 calendar days or more before the end of the completion date set forth in Section F. The Contracting Officer will notify the contractor 60 calendar days...