Outsourcing: How to Avoid Contract Disputes

23.06.2011

Outsourcing customers can limit the cost of disputes and litigation even after the ink is dry. "The biggest mistake we see in dispute resolution is failing to send firm correspondence about breaches," Kriss says. "Yes, it's time consuming and won't be popular with the supplier. However, if you don't send that correspondence when the problem is developing, it will be more difficult afterwards to sort out which party was responsible for the problem."

For example, if a customer adds personnel to mitigate damages caused by the supplier's failure to perform but fails to provide clear written notice to the supplier before the personnel are added, it will be more difficult for the customer to prove that the personnel were added in response to the supplier's failure to perform.