Public Procurement Contracts – The best way to deal with the risks of contracts

The risk is a threat or the likelihood that an action or event will occur which adversely affects the ability to reach contractual goals. Risk management is a way to predict what these risks may be, and then create a plan for how to prevent or prevent them. Some can check your actions, but some are uncontrollable. Here is the best way to deal with contractual risks.

First, create a risk register. This will allow: –

o to identify the risks associated with the contract;
o Identify how to handle each one, keeping in mind that this sometimes involves awareness and follow-up rather than immediate action; and
o Plan your strategic steps to minimize your contractual risk.

Registry is a pragmatic, live document and recognizes real and immediate risks, not those that are always present (eg The record not only records the risks, but records the steps to be taken, how serious the risk

One of the commonly used techniques is called Error, Mode and Impact Analysis or FMEA. This approach lists any failures or risks that may occur, analyzes them and then ranks them based on their probability and impact if they are

One way to reduce risk is to pass it on to another party. "In any contract, certain risks may be attributed to the acquirer or the supplier

Another common example of how to transfer to a third party through insurance. fees for paying another organization m If your probability is high, but the premium is likely to be prohibitive and if there is no legal obligation to insure, you may be able to alleviate it in some other way.

Where risks can be expected in the contract, they must agree with the supplier responsible for the risk. The most important issues during the evaluation are: –

o Who are in a better position to control the event that triggers the risk – are you or your carrier?
o Who are in a better position to control the risk if this occurs?
o What do you have to do with uncontrolled risk – such as accepting, securing, distributing or distributing it to the buyer?
o If you delegate the risk to the supplier, are you sure that this is legally acceptable? Is it possible to recapture other risks?

Source by sbobet

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