Contract Analysis & Risk Analysis
What is the difference between a contract analysis and a risk analysis?
The contract analysis determines the contents of the contract: what is to be performed and what are the boundary conditions. The identified performance target thus results in a cost assessment for the company's own supplies and services.
The risk analysis then examines the risks and opportunities associated with the contract. Each risk and opportunity is then commercially evaluated along with a probability of occurrence, resulting in a total that is regularly included as a provision in a cost estimate.
The sum of the cost evaluation of the performance target, the provision for the risks and the allowance for profit, is then the bid price. However, the risk analysis provides even more. From the risks and opportunities identified, appropriate strategies can be derived within the framework of risk management in order to reduce risks and realize opportunities.
Why is contract analysis important?
Every project requires an adapted execution strategy. A strategy requires an objective and knowledge of the specific constraints. This includes the analysis of what is to be delivered and also necessarily the knowledge of the opportunities and risks.
Successful projects are successful contracts. Identifying risks as far as possible before the contract is signed and then minimizing them with appropriate measures is an essential key to success.
Contract Tools GmbH has extensive know-how around risk identification and risk minimization for all types of projects and contracts.
Contract analysis
We provide an in-depth contract analysis and create a meaningful report.
If the contract has not yet been concluded, you will find recommendations on changes to avoid risks and increase opportunities.
If the contract has already been agreed, you will find recommendations on settlement strategy, reducing risks and enforcing opportunities.
Risk and opportunity analysis
We examine the contract to identify commercial opportunities and risks. In doing so, we focus on problematic formulations and issues in the contract that need to be taken into account during settlement.
The risks within the scope of technical feasibility are examined and contributed by your specialists.
Tools and methods
Standardized processes save costs, lead to quick results and can be tracked. The processes in a company should fit the industry and the product. We have a lot of experience which methods of contract management fit to a company.
