for Contract management
How can you negotiate contracts to lower financial risk?
We negotiate business contracts to reduce the company's risk exposure for specific projects. While lawyers handle negotiations, finance professionals focus on financial aspects, and engineers address technical details. Often, contract negotiations become challenging because negotiators lack the tools understand how proposed technological solutions and contractual clauses intersect, potentially affecting the company's financial risks.
Making mistakes in area can lead to costly penalties and even bankruptcy. Our inability to negotiate certain clauses may result in the need to propose an alternative technical solution for the contract.
Geeglee is utilized by leaders to assess the impact of technology choices and contract on the company's financial risk exposure.
3 easy steps
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Step 1: collaborate with your experts using a silo approach.
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Lawyers will develop a collection of contractual clauses, presenting various ways to articulate these.,
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Engineers will develop a Geeglee model for their technical systems, incorporating considerations for delay and cost risks, along with their breakdowns,
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Finance professionals will develop a financial model for project to assess the return on investment..
(These insights are already present in their minds; step 1 is simply about harnessing them and making them accessible for Augmented Human Intelligence technology.)
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Step 2: set the data into Geeglee Pattern
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Load the step 1 data into Geeglee and fill in any missing information
(Data can be populated by importing or exporting an Excel file.)
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In this demonstration case, there are numerous scenarios where one could lose money, as by the blue bars on the high financial risk side being taller than those on the low risk side.
In this project, our client integrate various customers and incorporates the risk of contract loss during trading phase, taking into account the details of previous contract. This approach is strategic for clarifying the negotiator's instincts and determining how far they can push the negotiation without jeopardizing the deal. Additionally, it helps identify the technological platform that should be developed to succeed in the tender while minimizing financial risks.
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Step 3: Use the generated "app" to evaluate financial risks make informed decisions
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Play any scenario on the Geeglee Intelligence App automatically generated by Geeglee Pattern:
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Choose the option with the least financial risk and review the clauses to negotiate, along with the technological solution to suggest for the project,
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By choosing a client and shifting the dot to the right (indicating the lowest risk), the Geeglee App can identify the model for negotiating clauses 1 and 2 (the two widgets on the) as well as the technology to implement for the project (the two widgets on the right).
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If you're unable to reach an agreement during clause negotiations, input the negotiated clauses into the app and the real-time impact on financial risks. Choose the lowest risk option and determine if it alters the solution you need to present to your client,
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Select the imposed clause(s) here C1 model 2 and C2 model 3 and have a real-time view of the financial risk. Notice how the blue bar moves to the right!
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You can also set the technology you proposed in a request for proposals and assess the associated risks along with strategies for mitigation!
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Choose the suggested technology and assess the financial risks linked to the negotiation of clauses. In this case, clause 1 needs to be negotiated to model 4, while clause 2 does not impact the risk (as all blue bars are of equal length).
Partners
They can help you to unleash the power of
Geeglee in your projects
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