The Impact of Authority Interventions on Contractual Claims and How to Manage Them

The Impact of Authority Interventions on Contractual Claims and How to Manage Them

At PMA, we fully understand the importance of professionals in contract management comprehending and handling the implications of authority interventions on contractual claims and contract administration. Changes in laws and authority interventions can lead to unexpected adjustments in project trajectories, necessitating a swift and effective response to balance contractual requirements with legal changes.

Impact of Authority Interventions on Contractual Claims

The main implications of authority interventions on contractual claims include:

1. Changes in Laws and Regulations: Changes in laws and regulations may result in modifications to existing contract conditions, affecting claims and the rights of parties involved.
2. Impact on Project Programme of Works and Costs: Authority interventions can cause delays or adjustments in the project Programme of Works, costs, and obligations of the parties, potentially leading to increased contractual claims.
3. Changes in Economic Conditions: Authority interventions can lead to changes in the economic conditions surrounding the project, affecting the costs of materials and labor, thus increasing claims.

How to Manage Authority Interventions

To effectively manage the impact of authority interventions on contractual claims, the following steps should be taken:

1. Legal Analysis: Authority interventions require a thorough legal analysis to determine their actual impact on contracts and potential claims.
2. Effective Communication: Establishing effective communication channels with the relevant government authorities is crucial to understand the requirements of changes and their impacts.
3. Risk Management: Implementing strategies to manage potential risks and the effects of authority interventions is essential.
4. Negotiation and Settlement: Earnest attempts should be made to negotiate acceptable solutions and amicably settle disputes.

PMA's Expertise

Our experience at PMA allows us to provide appropriate training and the necessary skills to handle authority interventions effectively and professionally, helping to achieve project success and the mutual interests of all parties.

We are always committed at PMA to providing the necessary support to our clients and partners in managing challenges arising from authority interventions in contractual claims.