Form of agreement structure: general principles or detailed elements?
fosco frongiaSenior project manager| ENTE PATRIMONIALE CHIESA GESU' CRISTO SUGFino Mornasco, Como, Italy
Talking about agreements, I noticed that some cultural groups prefer very detailed contract and other ones prefer for of contracts that include only general principles. I think it is due to the culture of the groups which act, in the sense that to prefer a form or the other ones depends to the final target of them: relationship building (principles), contract signature (detailed contracts).
what do you think about my affirmation?
In your country is it generally preferred a detailed contract or a contract based on general principles? Which are the reasons that govern this preference?
many thanks for your contribution Saving Changes...
Yes. If a performing organization is entering into a contract with any government entity or TWO huge companies are entering into big contract for any joint venture or joint deliverable/s of another big contract , contract shall invariably be very lengthy.
But in case of Unit Price Contract for small time work , contract papers shall be short & simple.
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1 reply by fosco frongia
Feb 27, 2016 11:18 AM
fosco frongia
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Thanks
Fosco
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fosco frongiaSenior project manager| ENTE PATRIMONIALE CHIESA GESU' CRISTO SUGFino Mornasco, Como, Italy
Feb 27, 2016 7:26 AM
Replying to Krishna Bhimarao Khasanis
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Yes. If a performing organization is entering into a contract with any government entity or TWO huge companies are entering into big contract for any joint venture or joint deliverable/s of another big contract , contract shall invariably be very lengthy.
But in case of Unit Price Contract for small time work , contract papers shall be short & simple.
Thanks
Fosco Saving Changes...
PANKAJ KUMAR JOSHIGeneral Manager| Transrail Lighting LimitedNainital, Uttrakhand, India
In recent Kuwait project the scope is not clearly defined but they added one item in BOQ, 'any other item required to complete the scope of work'. In this kind of turnkey project we assume many risks to become competitive and at last it becomes difficult to execute.
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1 reply by fosco frongia
Feb 28, 2016 5:16 PM
fosco frongia
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thanks, Pankaj, really the risk your company is assuming is very high. I hope that the benefit you calculated are high too!
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fosco frongiaSenior project manager| ENTE PATRIMONIALE CHIESA GESU' CRISTO SUGFino Mornasco, Como, Italy
Feb 28, 2016 5:24 AM
Replying to PANKAJ KUMAR JOSHI
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In recent Kuwait project the scope is not clearly defined but they added one item in BOQ, 'any other item required to complete the scope of work'. In this kind of turnkey project we assume many risks to become competitive and at last it becomes difficult to execute.
thanks, Pankaj, really the risk your company is assuming is very high. I hope that the benefit you calculated are high too! Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
In my years of dealing with contracts, I have dealt with both forms. Please note that the details missing from a generic contract will usually be placed in a work order called against the contract.
In other words, if the details are not put in the contract, they are usually put in a subordinate contracting vehicle.
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1 reply by fosco frongia
Mar 01, 2016 5:24 PM
fosco frongia
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Correct Stéphane, working on construction fields I normally used contract with general conditions, which are a different document, and technical specification. Anyway in my experience I saw two different approach (maintaining in each case the above cited structure: contract + general conditions + technical specifications):
- focusing these documents in the manner that the counterpart has to work in a specified manner (prescription focus)
- focus them on the results (result focus)
Naturally these two different approach are based on different responsibility acceptance:
- in the first case the responsibility of the counterpart is more focused in respecting the prescription and less in the result (if the result is not like the expected one but the counterpart applied perfectly the prescription is it responsible of it?)
- in the second case the counterpart can apply different process because it is responsible only for the result (be careful. in this case in some countries YOU are partially responsible concerning the action/process applied by the counterpart).
generally I prefer this second "philosophy" but it is essential to consider very deeply consequences and define control methods.
I'm interested in your opinion, and in the opinon of all people who want participate in the discussion, about my consderations
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Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
In my experience, after working in both sides of the desk (as client and as a provider) in quit diferent domains I have saw that contacts with general principles are the most prefered not because the culture, because the sale style. That was a headache for me because I allways was part of the team that must work on "dreams come true" .
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1 reply by fosco frongia
Mar 01, 2016 5:27 PM
fosco frongia
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thanks Sergio, i think that business field could address in a way or in the another one.
I'm interested in your considerations about my affirmation done answering to Stéphane
