Contract Creation and Management Memo

Contract Creation and Management Memo

  • Submitted By: ria378
  • Date Submitted: 03/02/2009 11:12 AM
  • Category: Business
  • Words: 863
  • Page: 4
  • Views: 1


To: General Manager
From: Maria G. Vlahos
Re: Span Systems-Citizen Schwarz Contract Related Dispute

The problems, which arose between our company and Citizen Schwarz are due to clarity of purpose. Contracts are, for the most part, never free from interpretation; therefore, new and existing contracts need to be reviewed before, and after sign-off. During the last few months of the projects life, the contract has never been revisited, or changed to suit the new needs. Therefore, lack of substantial deliverables have been compromised. The client is unhappy with our performance as per the original contract, and may be looking for new software builders, although this is clearly a breach in contract. As per the new contract, the client has adequate reason to call for termination. However, if the contract was revised to meet the new changes, Citizen Schwarz would have no cause for cancellation.
Citizen Schwarz is too concerned with the deliverables, that it has not taken in account all the new requirements, which were not part of the initial project demands. These new changes have been difficult to accommodate within the existing budget and timeline. The client did not take into consideration that adding new requirements would greatly affect the projects schedule. Span Systems has done all it can to meet the new requirements within the timeline, which in turn may have led to sub-par deliverables.

Risks and Opportunities:
The C-S project is very important to our company, and as per the CEO, we can not afford to lose the account. Span Systems must make C-S aware of its potential breaches of contracts. The following is a list of breaches:
Requirements Change
Intellectual Property Rights
Substantial Performance of Contract
Communication and Reporting
Span Systems have valid reasoning for all the contract breaches.
The project requirements have changed substantially, and the contract has never been revised to meet these changes....

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