I have been having a running battle with the legal department in the company where I work for over nine months, on the need to have a simplified contract document of no more than 10 pages, than the current 72 pages contract document. The general terms of contract are usually the same for all contracts; only the scope of work, vendor details changes. My proposal is that the general terms should be warehoused somewhere, electronically, for the vendors to read and incorporate it by reference in the no more than 10 pages contract we will sign with them.
I have observed their opposition is based on the way they see risk: prevent all possible risks. This approach creates more "risks" in the form of not executing the contract document in time, leading to delay in the start and completion of project works. This runs counter to the business environment where speed is required. Risk should be seen as inevitable. Then seek ways to manage it.

During our current contract one of the main issues that we encounter is confusion over the interpretation of KPI reporting and the consequences of any failings. We are currently negotiating the follow on contract so has anyone used the visual enhancements to their KPI sections ? Have you found that it has helped with understanding ? Also is it acceptable to only have the graphics in certain sections of the contract or does it have to be a blanket approach to all schedules ?

I like the preventive attitude to make the contract process simple for both parties. Good continuous improvement design ideas to inspire us all to start looking at how we manage our own contracts.

This is such a refreshing look at contracting. Too many times I see ambiguous clauses because of how wording is interpreted and almost always a worked example helps clarify the issue via a CCN. If we put more examples and diagrams in the contracts we can be far clearer on intent rather than assuming those who read the contract post signature will read it in the same way.

Dear contract design innovators,

in case you missed it, I just wanted to share the link to the IACCM Contract Design Pattern Library with you: contract-design.iaccm.com/

The Library is a new IACCM resource to inspire you and support you. It is a collection of guidelines, methods and real-life examples to help you create clearer and user-friendlier contracts. Design patterns are model solutions to recurrent problems, not ready-made templates. You need to pick and mix them depending on your contextual needs and the communication problems you want to address - and implement them yourself to fit your situation.

The first release of the Library includes 12 patterns, plus some general introductory and guidance materials. It is an ongoing project and we will release more patterns and resources in the future, based on user needs and feedback.

In addition to the support materials in the Library, you can learn more about the Library and how to use it by checking out the recording of the launch webinar: www.iaccm.com/resources/

Feel free to reach out for questions/support/feedback!

Stefania

Have you tried using simplification techniques (text and visuals) in templates that may be changed during negotiation? I successfully launched a simplified confidentiality agreement with better layout and a timeline graphic, but found that logistically it is difficult to change graphics in a template if the terms change. I now want to apply the same techniques to a more complex template that will be negotiated more. Any thoughts out there?

I am thrilled to learn that there are organizations that are implementing this more user friendly and effective method of contracting. I have been seeing Statements of Work designed in this matter, however I have yet to see this implemented in the body of the underlying or master agreement. I am hopeful that this will become more of practice in the near future. To easily identify the key areas of an agreement is extremely important and I do believe that outcomes would be better and disputes minimized. I only wish my organization would adopt this more engaging approach toward contracting. It is always a struggle when the legal team is both judge and jury in contract content and design. It would be one thing if we were contracting solely with lawyers, but we are not. Vendors, clinicians and laymen should all be afforded every opportunity to thoroughly understand their obligations and protections and should not have to blindly sign on the line.

Very interesting topic and very well presented by Phil. Graphical presentation with minimal wording for the better understanding and easier acceptance by sellers.

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