Call to make early risk assessment

Supply Management, Feb 28, 2008

[Contracts]

Buyers should analyse the potential risks within a contract before submitting it to a lawyer, according to research by AT Kearney.

The firm found that by mitigating risks early, unnecessary bureaucracy could be avoided and more open relationships could be built with suppliers.

Haydn Jones, consultant at AT Kearney, said there was a perception that contracts were the final step, when they should be the starting point to a productive, innovative partnership.

He told SM: "It will take confidence and internal support to apply this method of tendering, but the results could be hugely rewarding for both parties."

The research follows six workshops held with organisations including construction firm Laing O'Rourke, law firm Mishcon de Reya, bank Dresdner Kleinwort, IT firm Patni Computer Systems, financial advisers Origen and the Global Business Partnership Alliance.