In: Operations Management
Project managers are faced with challenges during their management of projects in many different areas. One area may involve contract disputes. What is a best practice that minimizes the probability of a legal challenge when offering contracts for projects?
I think the best practice that would minimize the probability of a legal challenge when offering contracts for Projects, would be to incorporate the necessary Contract clauses that are so exhaustive in itself that it reliefs the parties from the occurrence of legal issues out of the performance of such a contract. In this regard, the contract clauses so incorporated in the agreement should be appropriate in nature such as inclusion of liabilities and its limitations thereupon, various important disclaimers pertaining to the execution of the contract, indemnification clauses, clear assignment of responsibility between the parties in contract, narrowing of obligations of each of the parties, etc. The language used in the agreement must be clear and lucid so that both the parties comprehend these clauses in the same sense as intended. In this way, it shall safeguard the parties from legal challenges arising out of the contract, if any.