Contractualization prior to the project, a tool to be integrated into internal processes.

Contractualization is a key phase in the implementation of all your projects involving external partners, whether your company acts as a customer, service provider, or supplier.

Too many projects are carried out taking into account only operational and economic aspects, which are of course key points, but are not sufficient by themselves.

Indeed, the contractual phase is frequently postponed to the end of the negotiation phase, when all the other elements have already been decided. In this situation, legal matters become a blocking point that will delay the execution of the project and may even end it.

The legal profession has an unfounded reputation for often obstructing the implementation and finalization of projects. Rather, it is a misunderstanding linked to the difference in language between our various jobs.

In reality, legal competence, used from the initial phase, will allow you to have a useful lever for the protection of your interests vis-à-vis your partners, and to save precious time in setting up your project.

All aspects of your project are interdependent and should be taken into account during the overall negotiation.

The contribution of the legal

The purpose of contracting is to set out your mutual obligations as well as the remedies for any situation that could hamper the execution of the project.

Integrating contractual negotiation into general negotiation is an assurance of being able to make your constraints better heard and, especially as a young company, to be able to obtain a contractual balance, which would be more complex to achieve in the event of late contracting, as time works against the party with the lower economic weight.

As a customer, it is particularly important to provide mechanisms for the execution of obligations in the event of delay (interest, penalty clauses) or exit due to non-performance. Integrating these elements into the negotiation from the early stage will allow your supplier or service provider to be able to take this aspect into account, and will provide you with stability and reliability in the preparation of your project.

As a supplier or service provider, on the other hand, it will be in your interest to ensure that the terms of the contract do not complicate the execution of your obligations (unsustainable deadlines, excessive interference by the customer through audit clauses or too frequent project meetings), but also that the payment terms correspond to your cash flow needs to carry out the project (payment schedule or payment once the project is completed).

The introduction of legal law in your commercial and operational processes will save you time in the long term, which will allow you to gain in responsiveness to your partners, and will add an image of seriousness to your company.

The PACAUD firm can assist you in contractualization of your projects as well as monitoring the life of your contracts and contract management.