Loss of time and trust, future sales compromised… Even business continuity may be threatened.
Along project execution, divergences and disagreements, even small ones, use to create conflicts that, accumulated or not timely solved, often scale to a dispute or litigation.
These conflict points, however, are normally not visible for the higher management and use to emerge only when the problem is already out of control, representing a risk for the project success or, in an extreme case, for the organization existence itself.
There are several tools to mitigate and reduce conflict losses – from specific contract terms to insurances, warranties and other financial services. Those tools, however, do not offer protection for intangible costs like, for instance, the time wasted with project delay, wear on relationship and loss of trust for future contracts.
When a dispute is established, a judicial sentence – usually considered inadequate or insufficient by both parties – takes a few years to be obtained. Alternative dispute solutions offer a better picture, but use to be even more expensive and, yet, to impose a delay to the project too long for business timing.
Our experience shows that it is better to restrain the problem as soon as possible, when it is tiny and manageable, and its consequences, despite painful, are not devastating to the project. We use this concept as guideline for our services and our Compas system.