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The Oil Platform Case—Managing Conflicts in a Consortium Relationship

In: Contractual Management

Author

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  • Ulrich Hagel

    (Bombardier Transportation)

Abstract

This case study deals with the warranty case of a Customer under a contract concluded with a consortium consisting of two consortium members. The consortium members have entered into a second contract amongst themselves, the Consortium Contract. In the given situation of delay, the consortium members have to consider both contracts to make an informed decision on how to react. They have to evaluate the consequences of the different options to identify the preferred solution. This entails complex processes: With respect to organization and communication, a considerable number of fields of management as well as a variety of departments and management functions are to be involved; With respect to content, decisions will be made in an interaction of explicit legal rules and implicit social norms. The processes, however, are dominated by risk management considerations. Thus, when deciding whether to start arbitration, the claiming consortium partner performed a Litigation Risk analysis leading to a rational and transparent selection of the Best Alternative to a Negotiated Agreement (BATNA).

Suggested Citation

  • Ulrich Hagel, 2020. "The Oil Platform Case—Managing Conflicts in a Consortium Relationship," Springer Books, in: Ralph Schuhmann & Bert Eichhorn (ed.), Contractual Management, chapter 0, pages 229-256, Springer.
  • Handle: RePEc:spr:sprchp:978-3-662-58482-8_8
    DOI: 10.1007/978-3-662-58482-8_8
    as

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