Project Management

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Can a strong stakeholder relationship prevent a contractual dispute?

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SANJEET TERI
Community Champion
Consultant| Timely Nexus Project LLP Greater NOIDA, Uttar Pradesh, India

A project may have a perfectly drafted contract, but disagreements can still arise from communication gaps, different interpretations, delayed decisions, or lack of trust

How much can effective stakeholder management contribute to preventing disputes before they become contractual issues?

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Kiron Bondale Retired | Mentor| Retired Welland, Ontario, Canada
Sanjeet -

While it can't prevent legitimate contractual issues from occurring, positive, mutually beneficial stakeholder relationships can reduce misunderstandings and increase the threshold at which a stakeholder elects to pursue a dispute.

A simple example might relate to timelines. Whereas a contract might specify financial penalties for missing a deadline by even one day, having a good relationship in place with key decision makers might encourage them to avoid engaging their procurement folks when a minor delay occurs.

Kiron
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Lissette Indhira Pimentel Sosa
Community Champion
Program Manager| HARPER SRL Santo Domingo / Distrito Nacional, Dominican Republic
I think it can make a significant difference, especially when issues are raised early. A strong relationship makes it easier to discuss different interpretations, scope concerns, or missed expectations before positions become more difficult to change.
It doesn’t replace a clear contract, but good communication and trust can help both sides resolve many issues before the contract becomes the primary way of addressing them.
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Michael King
Community Champion
Senior IS Project Manager| Baycare Health Systems Clearwater, Fl, United States
I think it is important to foster good working relationships with business partners, however, when a true contract breach occurs there is little that these good relationships can do to prevent the organizations from protecting themselves and to and including taking appropriate legal action.

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