Contract Creation

December 20, 2009

From: Executive Offices

To: Span Systems Contract Administrators

Re: Contract Creation and Management

The relationship between our organization and that of our consumers is vital to the success and reputation of Span Systems. Contracts are the life line of these relationships as they outline the responsibilities of the parties. Our organization’s mission and vision is built on delivering high quality products in a timely manner as outlined in our contracts. Careful and diligent attention to details in our contract is essential to the reduction of errors, risks, and loss of revenue and pledges that we will deliver our products in a fashion desirable to our consumers.

Contracts designed with lack of detail are viewed as ambiguous and are open to interpretation by the client and legal system. Potential legal risks associated with ambiguous contracts include, but not limited to, breach of contract derived from performance, escalation procedures pertaining to disputes, change requirements, property rights, and communication and reporting between parties. Other parameters of contracts that must be clearly outlined consist of quality, delivery, modifications, timeline procedures, change negotiation procedures, and alternative dispute resolution procedures.

Most recently our relationship with Citizen-Schwartz (CS) teetered on the edge of litigation due to performance, quality, change processes, property rights, and miscommunication with our client. Clarity of responsibilities is the assurance of successful contracts. Nearly eight months into our contract with CS there was a breakdown of communication between the parties and CS alluded to the idea of pulling the contract. The portions of the contract in question pertained to breach of contract under Internal Escalation Procedures for Disputes, Requirements Change, and Communications and Reporting. Although we have delivered on a majority of the terms of the contract there were some quality...