News & Insights | Articles | 23 October 2014
Risk is one of the most under valued variables available during contract negotiations.

When the person conducting the negotiation is directly exposed by potential risk, they are generally geared up to ensure that they are accounted for. However, with less experienced negotiators the 'total contract value', which includes risks, is not always at the centre of their priorities. In such cases, risks and total costs can be too easily under-valued. Retrospective discounts or payment terms, trade term agreements based on performance levels, due diligence exercises, penalty clauses for delays and minimum quality levels are but some of the ways in which negotiators set about minimising risk.

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