Distressed Contracts are a specialty of the Contract Company.
What is distressed contracts you ask?
Simply put a distressed contract is one that has been in effect for generally 1 to 2 years but increasingly seems to be ‘going off the rails’ or deviating from its original intention. In essence, there is mounting stress between the parties that the original contract is no longer being honoured, or the original contract is no longer fit for purpose.
There could be numerous reasons as to why the contract has ‘gone off the rails’.
- maybe the original scope was not properly defined,
- maybe internal pressures have been brought to bear since the contract signature date which means that one of the parties is going down a different direction from the original intention
- maybe the original parties that negotiated the contract are now no longer involved with the contract and subsequent contract managers or program managers are placing a different interpretation on the Statement of Work or Requirements
- or any number of other bona fide and legitimate reasons
In any event, while there are a plethora of reasons as to what has caused the distressed contract, the Contract Company specialises in:
- doing a forensic examination of the contract as entered into on the effective date
- determining the major reasons that the parties intentions are now deviating (this involves an analysis of the conduct of both parties and reasoning behind those motives)
- formulating a way forward to resolve the issue
- if applicable we will undertake a negotiate between the parties to create an amended or revised contract
- documenting the new revised agreement.
(Read related topic: Extending the Terms)
This complex time-consuming work but highly rewarding – our favourite type of engagement!
Got a Contract Question?
Send us the contract with your questions or requirements. We will then provide you a fixed price quote to answer your questions, or to provide a general review of the contract.