Drafting and Negotiating a High Value Long-Term Contract

Drafting and Negotiating a High Value Long-Term Contract

Posted by John Spratt, on February 26, 2020. Tags: , ,

We advised a well-known multi-national supplier of specialist goods and services on a long term contract with the organisers of a well-known national bi-annual event.  The challenge here was that the contract had to deal with a complex range of goods and services to be provided by our client over four events stretching over eight years.  The contract at the time was the biggest of its type in the world in terms of value.  The total value of the contract was between £15m and £20m.

Working with our client’s group Chairman, we approached the contract in stages.  First, it was important to understand exactly the commercial requirements of both parties, and we did this by carefully analysing the written material they both supplied.  We prepared headline terms of the agreement in order to obtain approval for the approach from both parties, and then proceeded by meetings with both our client and subsequently the customer, to develop the contract, which turned out to be quite lengthy, followed by some 17 complex schedules, to the point where it was capable of detailed approval. 

The customer was happy to rely upon our drafting expertise, and input into the agreement based on principles agreed between our client and the customer.

The result of this work was very satisfying.  The contract has now been tested, and our client and the customer are content with it.