Contracts, incentive schemes, and tariff analysis

A contract specifies the activities performed by two or more companies, organizations or individuals, and the terms through which each one will comply with its parts of the agreement.

The contracts affect the profitability of the business in a very large way due to the emphasis they have on income and expenses and by its execution and completion. When a contract is expressed poorly, an organization could lose a lot of money just because it lacks the resources and capabilities to identify contingencies or simple technicalities and incentive structures defined in the contract.

Effective contract management can ultimately create a powerful business relationship and pave the way to greater long-term profitability, but only when properly prepared and managed.

Contract management is the process of managing the negotiation, creation, execution, and analysis of contracts to maximize operational and financial performance in an organization while reducing financial risk.

In today`s world, organizations are facing increasing pressure from stakeholders to reduce costs and improve the performance of the company.
The stages that are generally considered in a good management of contracts are:

• Initial requests,
• Contract drafting,
• Negotiation of the contract,
• Approval of the contract,
• Execution of the contract,
• Management of obligations and contingencies,
• Revisions and amendments,
• Audit and reports,
• Renewal.

We advise our clients in all or parts of the chain of contract management, effectively and with the focus on maximizing the value for the organization.

We have an extensive experience, practice, and knowledge of structures and models used in the design of incentive schemes and tariffs for regulated and open sectors of the economy.

Our leading partners have deep experience in tariff setting process for leading service companies, understanding clearly what is at stake for a company at each of this process.