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Vendor Contract Risk and Legal Protections

13 minPRO
3/6

Key Takeaways

  • Ten essential contract provisions protect against scope disputes, cost overruns, quality failures, and liability claims.
  • Change orders must follow a written workflow: discovery, documentation, evaluation, approval, and tracking.
  • Five-level dispute resolution (negotiation, escalation, mediation, arbitration, litigation) resolves most issues before court.
  • No verbal approvals for change orders—every modification requires signed documentation.
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Test Your Knowledge

1.What is operational risk?

2.What is a risk register?

3.What is the Recovery Time Objective (RTO)?