Contractual advice to a major European consultancy firm
Our client, a European based semi government consultancy, being specialists in the field of airport operational training had entered into a contract with the airport management company of an Arabian Gulf country for staff training and ensuring operational readiness of two regional airports to coincide with the completion the construction works.
The Contract period was for a period of 54 months and the consultancy contract sum was around US$ 25m. In the event the consultancy could not meet the milestones and complete its scope of work because the construction work (being carried out by others) was way behind schedule, as a result of which, additional manpower was required to complete the scope of consultancy work.
Following various negotiations a contract amendment was drawn up extending the period of the contract and amending the payment terms. Unfortunately the contract amendment had been imperfectly drafted and left room for disagreement, and the Employer showed no willingness to resolve the issues.