Evernall Consulting

Think of it like this-

Your business signs a goods supply agreement worth N100million per monthly shipment delivery with another Company(Company B) ... there is an incentive clause for early delivery per shipment ( you get 5 percent on shipment cost if you deliver 2 weeks to target date and in this case, the incentive is N500k per month shipment delivery)....you can only activate it when you write to notify the other company that you met the set early delivery criteria....this did not happen because your contract is stored away somewhere and you are being paid the agreed cobtract price anyway.

You will lose N6million at the end of the year...it could have been useful for your staff motivation/retention.

Proper Contract Management is an essential for your business, especially when you have multiple running Contracts

This got my attention and is worth sharing. It is a representation of the Parable of the Workers in the Kingdom ( Christain bible- Matthew 20: 1- 6).

Now the story is about and Employer who hired unskilled labour for a day's work. He agreed to pay the earlier ones 1 denarius ( say N1) and the most recently hired, the same pay. Ofcourse at the point of payment of wages, there was a lot of grumbling on the Employer being unfair.

The truth is, no matter how unfair things appear to be, a well negotiated agreement is ALWAYS your best option in business.

Notice that i did not say "An Agreement", but a "Well Negotiated Agreement". Do you enter into contracts? what measures or terms do you think, would have salvaged the situation in this business arrangement?