Eran SionCommercial contracts & risk | Tenders & bids

Less risk. More value.

In what you sign, and from what you've already signed.

Most contracts carry risk nobody has priced and value nobody is collecting. I find both for Australian businesses, before they sign and while the contract runs. When they tender, I help them win on terms they can deliver.

Services Agreement, Schedule 2Draft for review
14.2

The Supplier indemnifies the Customer against all loss, damage, cost and expense arising from or in connection with the Services.

ExposureHow far does this reach, and does your liability cap cover it? Find out before you sign, then price it, cap it or narrow it.

6.4

The Customer may vary the scope of the Services by written notice at no additional charge.

MarginEvery change comes out of your margin. Ask for a priced change process before anything else.

9.1

The Charges may be reviewed annually by reference to CPI on written request.

Unclaimed valueHas anyone made the request? Reviews like this only happen if someone asks on time.

The kind of notes I write in the margin. I tell you what a clause costs and what to ask for, and propose wording for your lawyer to review.

When people call me

Each of these has a deadline, and the deadline sets your leverage. The earlier the call, the more options you have.

  • A contract has arrived for signature and the other side wants it back this week.
  • You've been selected on a tender and the buyer's contract team has started asking for changes.
  • A contract has run for a year or more and nobody has checked what it still owes you.
  • A renewal is coming up and you'd rather negotiate than roll over.
  • A tender has been released and you're not sure it's worth the cost of bidding.
  • A supplier is underperforming and you're still paying full price.

One contract, from tender to renewal

Most of a contract's risk is set before signing. Most of its value is won or lost after. I work across the whole life of the contract, so nothing agreed at one stage gets lost at the next.

  1. Bidding

    • Go/no-go assessment of the tender
    • Pricing structure, assumptions and risk schedule
    • The commercial sections of the response
    Tenders & bids
  2. Before you sign

    • Commercial review and a negotiating position
    • Proposed wording for your lawyer to review
    • Contract negotiation after selection
    Contracts & risk
  3. While it runs

    • Change requests, variations and unbilled work
    • Price reviews and indexation
    • Extra services under the existing contract
    Value you're not collecting
  4. Renewal or exit

    • Renewal strategy started early enough to have leverage
    • Clean exits when it's time
    Running the contract

Buying rather than selling? The same stages apply from the other side: choosing a supplier, negotiating with them, and holding them to what they signed. If you're the buyer.

Both sides of the table

I've run procurement and I've sold into it. I know what evaluators score, what suppliers concede without needing to, and which terms cause trouble two years in.

Buying

Telstra, nbn co, the Australian Taxation Office, MLC Life Insurance, WSP

Selling

Nokia, Amdocs, Unisys

What I did at each, with the deal figures

Not a lawyer. Not an accountant.
A commercial specialist.

Your lawyer tells you what a clause means. Your accountant tells you what the numbers were. Neither will tell you whether a term is worth fighting for, what to trade for it, or that the customer has been asking for unpriced work for six months.

That's the gap I work in. Where wording needs to change, I draft it: proposed clauses that say what you need commercially, ready for your lawyer to review and settle. Your lawyer starts from a draft that already reflects the deal, which is usually faster and cheaper than briefing them from scratch.

Two free checks

Each one scores where you stand and ranks what to fix. Your answers stay in your browser.

Contract check

Twenty-four questions on one contract, for suppliers or buyers. It scores your risk control and how much of the contract's value you're collecting, then ranks what to fix. About 12 minutes, no email needed.

Check a contract

Bid readiness check

Twenty-four questions on whether your business is commercially ready for a formal tender, with a scored report and a ranked list of gaps. About 10 minutes, no email needed.

Check your readiness
Eran Sion

Start with a 30-minute call

Tell me about the contract or tender. If I'm not the right person for it, I'll say so. I take on a small number of engagements at a time, so if I can't start when you need me to, you'll know on that call.

Get in touch