Mitigating Procurement Risks in Construction
A German construction company faced potential risks when procuring materials for a project in Saudi Arabia. While they had identified a local supplier, the procurement managers were concerned about hidden risks in the contract.
5+
Risks identified
20 h
Saved
20%
Saved on Penalty
Overview
A German construction company faced significant risks while procuring materials for a project in Saudi Arabia. BestAgreement.AI’s "Red Flag" feature identified unfavorable contract terms, empowering the company to renegotiate with their local supplier. This resulted in a revised agreement that mitigated financial risks and ensured the project’s success.
Problem Statement
- The construction company identified a local supplier in Saudi Arabia but was concerned about hidden risks in the procurement contract.
- The initial contract presented unclear delivery dates, excessive penalties, and unbalanced payment terms, posing potential financial and operational risks.
- Procurement managers lacked confidence in moving forward without thoroughly analyzing the contract’s risks.
Gergard N.
Procurement Manager
"BestAgreement.AI's 'Red Flag' feature gave us the insights we needed to renegotiate a better contract. It helped us avoid significant risks and ensured the success of our procurement process."
Results
- Identified and addressed unfavorable contract terms such as delivery delays and penalties.
- Successfully renegotiated the contract, ensuring balanced terms and minimizing financial risks.
- Secured a revised agreement that aligned with their interests, reducing potential project risks.
Solution:Â bestAgreement.ai
-
Red Flag Identification: BestAgreement.AI’s “Red Flag” feature automatically detects risky contract terms, such as unclear delivery dates, excessive penalties, and unbalanced payment schedules.
-
Comprehensive Risk Analysis: The platform provides a thorough analysis of potential contract risks, giving procurement teams the insights they need to address and mitigate issues before finalizing agreements.
-
Contract Risk Mitigation: By identifying hidden risks early, BestAgreement.AI helps reduce financial exposure and ensure that contracts align with the company’s interests, safeguarding project success.
DEMO
There are no more posts.