Legal services firm NSDV has launched a new contract management services offering, which aims to save companies from unnecessary and avoidable legal fees, while improving project delivery and profitability.
NSDV construction law specialist, director and cofounder Cameron Staude said in a statement on January 20 that the new offering was created following years of seeing contractual mismanagement and was borne of a desire to improve the way contracts are handled within the sector.
He said he had seen repeated contract mismanagement and its adverse financial implications, particularly when it comes to the claims process.
“Many companies lose claims on technical contractual errors and it’s completely avoidable,” Staude said.
While contractual errors can translate into more billable hours for legal specialists, NSDV claim to take a different approach of focusing on increasing profitability and success on behalf of its clients.
“We take on risk to align ourselves to [our clients’] success. We wanted to use the status quo as an opportunity to create an outsourced solution that is fair and in favour of construction companies,” Staude said.
NSDV said that, by outsourcing the necessary contract establishment, management and claims processes, it provided a marked increase in successful claims, which would significantly impact on profitability.
“Each tier in the contract management process has a material impact on the next, and we ensure that every phase is handled correctly so that claims are successful, and the bottom line is protected,” Staude commented, adding that something as simple as a pricing error in the tender phase can negatively impact on a contractor’s profitability.
He claimed that, while piloting the solution in 2021, the firm had managed to save one of its clients 20% of its project budget – which it would otherwise have spent on legal fees – by implementing the contract management services solution.
The new service offering from NSDV comprises the careful establishment and maintenance of contracts developed in consultation with the client, strong contract compliance throughout its duration, and the collation of a comprehensive but navigable document and audit trail.