Join us at the 2015 IACCM Europe Forum! Visit www.iaccm.com/europe for program and speaker details. Pricing Details:*Corporate Member rate includes a 30% discount on the standard Full Member rate Registration Options Individual Member Rate Corporate Member* Rate Non-Member Rate (includes 1 year IACCM Membership!) Full Event Pass (Incl. optional Workshops) £1176 inc. VAT £828 inc. VAT £1316 inc. VAT Qualified Academic Pass** (incl. Full event pass) £708 inc. VAT NA £852 inc. VAT *A 30% discount applies to those who are part of an active corporate membership. The discounted price will automatically be listed when you register. If in doubt about your membership status, please contact firstname.lastname@example.org. Contact Diane Kilkenny to learn more about starting a Corporate Membership. **Discounts available to FULL-TIME Academics only, please contact email@example.com for details.
¿Te interesa ampliar tu conocimiento sobre las relaciones contractuales? Más de 8.000 participantes al día de hoy se han registrado en curso on line gratuito sobre aspectos básicos de la Gestión Contractual de la IACCM.
El curso 'Contract Management: construye relaciones en el mundo de los negocios' es un curso dictado en inglés, on-line, sin costo, disponible para todos, desarrollado por la IACCM en conjunción con la Universidad de Southampton, la oficina de la Jefatura del Gabinete del Reino Unido y el Servicio Civil Británico en materia educativa. Comenzando el 27 de abril de 2015, es un curso de tres semanas que te ayudará a comprender las relaciones contractuales comerciales y el proceso de gestión de contratos.
Si quieres conocer más detalles, visita nuestra página: www.iaccm.com/futurelearn o ponte en contacto con nosotros. ¿Quieres saber más aún de los 'MOOC' (courses on-line abiertos y masivos) y, en particular, sobre cómo puedes sacar provecho de esta nueva modalidad de capacitación? Unete al webinar de Tim Cummins de este jueves 16 de abril (4pm London, 11am NYC, 11pm Singapore time) en http://www.iaccm.com/events/register/?id=2121
The UK Pan Government profession group responsible for the professional curriculum, the Commercial Capability Group, has agreed the inclusion of IACCM's Commercial and Contract Certification Programme in the list of approved learning offerings in December 2014.
Convocamos a la comunidad hispanoparlante a participar de las siguientes encuestas actualmente activas y que nuestra IACCM estará procesando en las próximas semanas.
Les recordamos que aquellos que completen las encuestas tendrán libre acceso a una serie de webinars a ser organizados a la brevedad, además de recibir los resultados de las investigaciones 60 días antes de ser publicados oficialmente. Muchas gracias!
1. Performance Measurements: encuesta sobre las métricas de desempeño, complejidad del contrato, número de personal, ciclos de procesos contractuales, cantidad de contratos por profesional, etc.
Con un solo link, en 10 minutos completarás el mismo! https://www.surveymonkey.com/s/PerformanceMeasurement2014
2. Primary Areas of Activity: apuntando al alcance del rol, tiempo dedicado a las diferentes actividades y utilización de servicios tercerizados de outsourcing u offshore.
Aqui tienes el enlace: https://www.surveymonkey.com/s/PrimaryAreasofActivities2014?c=1218_85
3. Value Proposition: en esta encuesta nos concentramos en el valor que has aportado a los negocios, con mirada puesta en la línea de reporte, objetivos, retos y utilización de habilidades
4. Contracting Capability assessment : finalmente, con esta encuesta, ya fuera del benchmarking, analizamos nuestras capacidades de contratación (modelo de madurez)
IACCM is pleased to announce five newly elected members of our IACCM Board of Directors who are about to step into three-year terms beginning January 1, 2015. Our board reflects the diversity of our membership with 9 different nationalities and 7 different industries represented.
No olvides de participar en la votación de la Junta Directiva de la IACCM. Este año, 5 de los 15 candidatos podrán ser electos.
Para mayor información sobre los perfiles, y asimismo para elegir tus candidatos, cliquear en http://www.iaccm.com/members/boardelections/
Les retransmito un link para esta rápida encuesta a la que nos invita Tim Cummins.
Si bien existe claramente un sustancial incremento en la frecuencia con la que los contratos son renegociados, la pregunta es... en qué medida los negociadores están previendo esta necesidad?
En una investigación desarrollada en conjunto con la Escuela de Negocios de Copenhague, la IACCM requiere a sus miembros que compartan sus experiencias al momento de desarrollar cláusulas contractuales que tengan por objeto el derecho de renegociar las mismas. En particular, se ahonda sobre el tema de las llamadas en inglés 'hardship clauses', esto es, cuando ante un cambio brusco de las circunstancias se genera una desventaja desproporcionada y sustancial para una de las partes. En principio, la experiencia y las estadísticas sugieren que bajo esas condiciones existe una mayor tendencia hacia el incumplimiento y el conflicto salvo que se haya previsto un mecanismo de ajuste.
Es una encuesta que no llevará más de 5 minutos completarla. Con ello, todo participante recibirá feedback sobre las prácticas y procesos aplicables actualmente en esta materia.
Por favor, referirse al siguiente enlace: https://www.surveymonkey.com/s/contractrenegotiation
Nuevo artículo publicado en inglés en "Contracting Excellent" bajo el título: "The new high-pressure contract manager role - and implications for Spanish-speaking nations". Ver link: https://www.iaccm.com/resources/?id=7597
Y aquí el enlace para el análogo en castellano: https://www.iaccm.com/resources/?id=7598 ("El rol del Gerente de Contratos. Nuevas tendencias, en particular desde la perspectiva de los países de habla hispana")
Hola a todos !
Conforme lo anticipara Tim Cummins, el CEO de la IACCM, la encuesta sobre los TOP NEGOTIATED TERMS durante el 2013 está a punto de cerrar, pero AUN ESTAMOS A TIEMPO DE SUMAR EL APORTE DESDE CENTRO Y SUD AMERICA e IBERIA (ESPAÑA Y PORTUGAL).
Este estudio es utilizado por profesionales de varios países e industrias ya que es una herramienta útil a la hora de planificar la negociación y diseñar las políticas internas.
Como nos dice Tim en su mensaje en inglés que retransmito a continuación, el estudio de este año está a punto de ser finalizado pero a la IACCM le interesa especialmente nuestro aporte desde los países de habla hispana y portuguesa, esto es, España, Portugal, Centro y Sud América.
Participa, ya mismo, son apenas unos minutos, cliqueando aqui: https://www.surveymonkey.com/s/2103topten y recibirás un resultado personalizado en las próximas dos semanas.
IACCM's study of the most frequently negotiated terms is used by professionals in many countries and industries to help their negotiation planning and to influence internal policies. The current survey is nearing completion, but we would especially like more input from South and Central America. I would very much appreciate if you could take a few minutes to provide your experiences.
The survey can be accessed at https://www.surveymonkey.com/s/2103topten
As a contributor, you receive a personal copy of the research report; your input will of course be kept confidential.
Comparto con Ustedes mi último artículo (en inglés) en "Contracting Excellence", donde abordo el tema de la redacción y negociación en múltiples idiomas. Seguramente estaremos acercando el texto en español próximamente, pero me interesaría escuchar sus comentarios desde Latinoamérica y España. https://www.iaccm.com/news/contractingexcellence/?storyid=1532&utm_medium=email&utm_campaign=CE_January_2014+Americas&utm_content=CE_January_2014+Americas+CID_8a7d09a845a550e5e08252753959d454&utm_source=Campaign%20Monitor&utm_term=Need%20a%20dual%20language%20contract%20Heres%20how Para ver la "newslettter" íntegramente: https://www.iaccm.com/news/contractingexcellence/?id=139 Need a dual language contract? Here's how
By Pablo Cilotta, International Senior Legal Counsel & Head of Contract Management (HR - EMEA & Latin America)
Having managed legal and contractual matters in multiple jurisdictions, I have heard many professionals based in the US and UK raise this question.
Let’s say you are planning to support international expansion of your business into Spanish speaking or other countries, but you’re concerned about drafting and negotiation in multiple languages. If you are a global head of contract management or general counsel of a US or European multinational, you likely want to know the obstacles and how to avoid them.
Indeed, if we advise companies with operations across multiple geographies or with several business units in the world, we usually face the need to draft, review and negotiate contracts in other languages. For example, you could be doing this when closing sales with foreign companies, appointing sales agents or distributors who need agreements drafted in other languages rather than English or when acknowledging services or employment agreements with parties that perform services overseas.
This article explores contract drafting and negotiation in multiple languages, from the perspective, mainly, of Spanish-speaking countries. It includes awareness of cross-cultural and language differences, and explores the appropriateness of undertaking a dual language contract model. It does not include legal advice or propose a ‘right answer’ for all purposes, because each must be decided case-by-case.
Be accurate – errors cost money, trust!
Recent IACCM research reveals several areas where unintentional but substantial misunderstandings can occur, if we are not aware of cultural norms or expressions. It can be embarrassing and costly. In fact, an article in Tim Cummins’ blog Commitment Matters stresses the need for clarity in communication during negotiations. Particularly when dealing internationally, misunderstandings happen easily.
Plain language makes translation easier
Wholeness of the message, its presentation, accuracy and consistency are all more than relevant, but the main benefit of a well-written contract is its clarity.
Business leaders don´t speak technical-legal language, so it is important to draft contracts in terms that are easy to understand, using plain language and avoiding legalese. If this is done, translation into a local language will be much easier.
Keeping paragraphs short, dividing the contract into sections with clear sentences, preferring active voice over passive, avoiding multiple negatives etc- all help with clarity in contract drafting, including for translation purposes.
Beware of cross-cultural differences
In his article, David James, author of Cross-Cultural and language training states “Global competition is too great to wing it when you go abroad. Savvy business people learn about the specific cultural differences for each country where they do business. And the differences are significant.”
When managing cross-border functions in multinationals, we must be prepared to explore diversity in multi-disciplinary teams, identifying the impact of cultural differences in drafting and negotiating international agreements. For instance, contract management professionals need to have cross-cultural understanding and training to properly manage choice of law and arbitration and understand how to deal with translations of contracts into foreign languages.
But, recent IACCM research indicates that many American companies fail to focus attention on local culture or language differentiation when expanding into new regions. Worse, during turbulent economic periods, companies often cut the language, international business and cross-cultural training programs once offered to employees.
We must understand the mindset of the people and companies we deal with overseas, and always get local advice on whether or not local laws require mandatory provisions in certain circumstances.
Contract Management in Latin America – its growth and current impact
Lately we have seen contract management beginning to emerge as a recognized profession in Latin America, although still in the early stages of development. Contract management roles are not common in South America. In general, project management, procurement or sales perform these functions. Lawyers manage the drafting and negotiation phase if the company requires in-house support. Otherwise, it becomes the responsibility of the finance jurisdiction.
That said, small or medium size companies that assign contract drafting to external lawyers are exposed to risks when they must negotiate a contract in a foreign language, such as English. These lawyers probably do not know the business as they should, even without 100% domain of the English language.
I have seen this happen with small organizations in Spain and certain Latin American countries. The contract template brought by the supplier from the US or Europe, in its English version, is taken overseas. Then customers in Latin America or Spain - who anticipate reviewing and negotiating in English - find they cannot. Result? An incredible waste of time creating translations, unexpected costs, extra work, having misunderstandings and experiencing the need to review a contract already reviewed.
Narrowing the legal gap – the good news
The legal system adopted in Latin American countries – as well as in France, Italy, Germany, Spain and other countries - is civil law, also known as the Continental European Law system. Its foundation is the French Napoleonic Code and the old Roman system, as opposed to thecommon law of the Anglo-Saxon community.
With this traditional gap narrowing, Latin American practitioners have been developing new business models that recognize the increasing importance of common law. The gap no longer affects us as much. Obviously this is a great help when negotiating international contracts.
Choice of language – the challenge
One of the first things you must evaluate when doing business with foreign parties is whether the agreement should be in English, or the foreign language or both. American corporations doing business abroad require English as the official language for the contract. But English is not always the best choice. For instance, if our goal is to have a potential dispute resolution in a jurisdiction or arbitration forum where arbitrators do not conduct proceedings in English, then without any doubt the choice of contract language will be the other language, not English.
Avoid dual language if possible
Multilingual contract models can be extremely dangerous and we could run severe risks when transplanting and adapting foreign legal concepts. I would always try to avoid dual-language contracts.
My first choice would be to migrate Spanish customers to English, depending on the customers’ size and structure and the circumstances of the transaction. Are we selling to a small or medium client? How big are we? Are we buying or acknowledging an alliance partner agreement?
It’s critically important to make a comprehensive assessment and then decide to either migrate them to English or create a dual-language system.
If we migrate customers to English we can still discuss issues in local language (via phone, face-to-face meetings, email) while keeping contract templates and reviewing other parties’ concerns exclusively in English. In this case, both parties must understand that only the English language will dominate, because only one version of the contract exists in English. The other language will be a translation for information only.
If this option does not match the other party’s expectations, we have no choice but to implement the dual-language model.
If a dual language contract is necessary, companies with overseas operations sometimes use a two-column, side-by-side format in the contract, depending on the country. This type of contract is common when dealing with customers, vendors or partners with subsidiaries or operations in Spanish-speaking countries, as well as Chinese, Korean, Arabic, Ukrainian, Russian and other Eastern European local languages and, to a lesser extent, Italian and German.
Which language controls?
First, in case of conflict between both languages, it is essential to consider which will have priority. The question is which language is the official one? Which is binding? Which will control? The agreement needs to be extremely clear. It should state that the original version is in a certain language (eg English) and if a conflict or discrepancy occurs between the languages, one of them shall prevail and take precedence over the other.
For example, a clause might have the following wording: “This agreement is in both languages, English and Spanish. In the event of any inconsistency, the English version is the original language and the Spanish version is a translation for information purposes only. Then in case of conflict, the English version will prevail and will therefore be the binding version for both parties…”
It is best if both the English and foreign language versions of the contract state which of these versions controls. If neither version states which one controls, then the foreign language version will normally prevail in a local court and the local law will apply if different interpretation criteria or discrepancies occur. Regardless of what the English language version states, always be aware of what the foreign language contract says as well.
Conduct a clause-by-clause review to ensure translation quality
Recent exchanges in our IACCM forum show the importance of making sure about the quality of translation. You must ensure that you have an accurate translation of the contract. One of the two options below can be used to perform a clause-by-clause review:
Proven independent law firms with international network connections and domain in multiple geographies or
Official translation companies or individuals with demonstrable experience in translating legal terms and conditions.
A case in point …
Some years ago I experienced the following incident in Spain proving the importance of quality in translations. The relationship and negotiations were in Spanish. The subsidiary drafted a Spanish version of the contract by literally translating into Spanish the English version of the terms and conditions.
A secretary (non-lawyer) performed the translation. But unfortunately, and by accident, the negotiators signed the contract with a provision that stated the need to conduct arbitration in Houston, Texas. The contract was between two legal entities based in Spain, and had no contact point in Texas!
Fortunately, no conflict or discrepancy occurred, but many complications could have resulted. A conflict would have generated additional non-expected costs and time. The company had no opportunity to remove a clause. Also, in Texas, a translation of a foreign-language document would only have been admissible in court or arbitration proceedings if the document had been accompanied by a sworn affidavit from a qualified translator. The affidavit would be required to specify the translator’s qualifications and attest that the translation was fair and accurate
Conclusion – keep this as a checklist
Clarity in communication and plain language is essential in contract drafting, especially when dealing internationally. We must pay attention to cross-cultural and language differences.
Evaluate if the agreement should be in English, the foreign language or both.
Try to avoid dual-language contracts. Insist on a “migration” of non-English speaking clients to English, but keep meetings, phone calls, conversations and follow-up procedures in the local language. If you must implement a dual-language model, state which language controls and governs.
Consider both choice of law and jurisdiction at the beginning of negotiations.
Find out if the contract provides for dispute resolution, choice of forum or jurisdiction or international arbitration. If no provision exists, assess which legal forum is best for the business. If it is a non-English-speaking forum, assume that the foreign language prevails.
Consider the objectives and agree on the contract language that makes sense with such a dispute resolution clause, if any.
Use an in-house contract manager or legal counsel who understands both languages. Either get external legal advice to review the contract according to local law or hire a translation company or professional with expertise in technical-legal vocabulary.
Consider the time and legal fees to be spent in drafting dual language contracts.
Specify the currency to be applied to the contract and consider that local specific issues can impact contract performance.
Remember to state that the language that controls will also be the official language during the post-award contract management stage. The controlling language must be stated as the language of subsequent change requests between the parties.
Finally, have the contract signed by both parties. If it is a dual-language model, each party signs each version.
ABOUT THE AUTHOR
Pablo Cilotta is a bilingual (Spanish & English) in house legal counsel with background in corporate and business law, commercial contracts, employment agreements and HR generalist profile. He has business presence in Europe (Spain); Middle East and Africa; APAC; LATAM (Argentina); and the US market. Within that global presence, his experience includes many industries like the fishery sector, IT industry, law firm consultant. His core specialties include setting up legal entities and subsidiaries, demonstrating expertise in designing, drafting, implementing, reviewing and negotiating contracts, including technology license and channel partner.
TO CONTACT THE AUTHOR, please mail your question to Info IACCM or connect using the IACCM Member Search (login required).
La IACCM lanza hoy su tradicional estudio anual, en su 12da edición, sobre los términos contractuales más negociados a nivel mundial.
Este único y exclusivo análisis es utilizado por empresas y asesores globalmente, a fin de informarse, desarrollar e implementar nuevas estrategias contractuales y de negociación. Es la encuesta más conocida de la asociación pero para ello es esencial tu ayuda.
La encuesta lleva menos de 10 minutos. Te preguntaremos sobre las cláusulas contractuales que negocias con mayor frecuencia y asimismo tu visión sobre ciertas tendencias en el proceso de negociación.
Por el simple hecho de colaborar con esta encuesta, recibirás con prioridad los resultados de la medición, sin perjuicio de contribuir con el estudio de las perspectivas y situación actual de nuestra comunidad profesional.
Los resultados del estudio ofrecen elementos esenciales para comprender diferentes perspectivas -jurisdiccional, geográfica y en razón de la industria- asegurándose de tal modo que pueda ser utilizada inmediatamente y puesta en práctica usual, generándose así nuevas ideas y tendencias en el entorno complejo que la negociación ofrece en nuestros dias.
Muchas gracias por tu participación. A continuación el link para contribuir con nuestra encuesta: https://www.surveymonkey.com/s/2103topten
Comparto con Ustedes los resultados de las elecciones para la Junta de Directores de la IACCM 2014. Los 22 candidatos representaron 12 industrias diferentes y 10 nacionalidades. Un final muy cerrado en la votación ha dejado la integración de la nueva junta de la siguiente manera, remarcando en "negritas" a quienes han sido recientemente elegidos o renovaron su mandato. Felicitaciones a todos!
Margaret Smith - Chair Executive Director- Contract Management and Director of Operations-Legal - Accenture
KB Monu Iyappa - Independent Consultant
Gianmaria Riccardi - Director, Commercial Business Management Europe - Cisco System Italia Srl
Coen Wilms - Group Contracting Discipline Manager - Royal Dutch Shell
Lucy Bassli - Assistant General Counsel - GCO Manager - Microsoft
Jerry Jacobson - Global Process Advisor - Contracting - Chevron
Arne Byberg - Associate General Counsel - Hewlett-Packard Co.
Barbara Chomicka - Senior Project Manager - EC Harris LLP
Kai Jacob - Process Manager and Head of Global Contract Management Services, Legal Department Manager - SAP
Andy Kerstan - Global Contracts Manager - Rio Tinto
Dan Mahlebashian - Chief Contracting Officer - General Motors
M.C. McBain - Vice President Global Business Development - IBM
Timothy McCarthy - Director, Contracts & Pricing - Rockwell Automation
Nick Nayak - CPO - Department of Homeland Security
Alan Schenk - Vice President for Common Process, Contracting and Compliance for Exploration and Production - BP
Peter Woon VP, Procurement and Supply Chain - Marina Bay Sands.
Cuando comento con equipos de gestiÃ³n contractual y comercial sobre la potencialidad de agregar valor a determinados procesos contractuales, mientras algunos se muestran entusiasmados por el tema, hay quienes me miran perplejos, carentes de opiniÃ³n sobre el tema.
IACCM Communities are collaborative, community driven platforms of experts from around the world. Our contributors publish their
own content as well as links to third-party articles and websites, and IACCM cannot be held responsible for content posted here.
View Content Policy
IACCM cannot guarantee or warrant the accuracy, reliability, currency, completeness or legality of such content, third-party articles, or
linked websites, and disclaim all responsibility for the use of any inaccurate, incomplete or illegal content contained in or linked from IACCM
and disclaim any and all liability to the user for any damages, including without limitation, direct or indirect, special incidental, moral or
consequential damages, loss of profits, opportunities or information or for expenses arising in connection with your use of IACCM, its services,
forums or the site content, even if they (individually or as a group) have been advised of the possibility of such damages, losses or expenses;
do not warrant that IACCM operates error-free, nor that defects, errors or omissions will be corrected, or that IACCM is completely secure;
disclaim any and all warranties of any kind, including but not limited to implied, express or statutory warranties as to non-infringement of
intellectual property rights, or third party rights, title, latent defects, uninterrupted service, merchantability, fitness for a particular
purpose, and freedom from computer viruses; and
do not warrant or guarantee that files available for downloading through IACCM will be free of infections or viruses, worms, Trojan horses or
other code that contains contaminating or destructive properties.
IACCM, including any and all aspects of IACCM, is not a substitute for independent professional advice and users should obtain
any appropriate professional advice relevant to their particular circumstances. Users must exercise their own skill and care with respect to
their use of IACCM and must carefully evaluate the accuracy, currency, completeness and relevance of the material on the site for their
purposes. The user should carefully assess any and all information obtained through IACCM before applying it to the user's situation. Never
disregard, avoid or delay in obtaining professional advice about handling engineered or other nanomaterials or nanoparticles because of
something you have read on this site. The advice the user finds in IACCM is freely offered in good faith, but no legal liability can be
accepted by IACCM, members on IACCM's Implementation Committee, IACCM's operators, content partners, content contributors or providers, or
IACCM contains links to other Internet sites that are external to IACCM. IACCM takes reasonable care in linking Internet
sites but has no direct control over the content of the linked sites, or the changes that may occur to the content on those sites. It is the
responsibility of the users to make their own decisions about the accuracy, currency, reliability and correctness of information contained in
linked external Internet sites. Links to external Internet sites, or links to documents, do not constitute an endorsement or a recommendation
of any material on those sites, or in those documents, or of any third party products or services offered by, from or through those sites or
those documents. Users of links provided by this Internet site are responsible for being aware of which organization hosting the Internet site
To report any innappropriate content, please