Question

Analyze the benefit and the effectiveness of the two-step process for contract interpretation. Provide an example to support your analysis. Then, recommend another step to the process and discuss how this additional process improves the interpretation process.

Answer 1

The benefit and effectiveness of the two step process for contract interpretation is based on the fact that two step process helps in ensuring that the intention of the contract is understood by the other party in a clear and unambiguous manner and in a manner and sense in which the first party had intended it to be.

An example to support my analysis is the lamp replacement contract for NASA. This contract had a simple ambiguity and this led to significant problems. The significant problems led to high unexpected costs.

Another step to the process that I will recommend in order to avoid ambiguities and improve the interpretation process is the step in which a contractor or qualified consultant is allowed to take part in the formulation of the performance requirements. In this step a contractor or qualified consultant will be allowed to participate through the RFQ process (request for quote). The benefit of this step is that it will the procurement process will be divided into several stages and this division will enable adjustment of final solicitation so that all ambiguities are either reduced or are completely eliminated. This eventually ensures that final award of the contract is free from any ambiguities.