10
PLAYBOOK TEMPLATES
Subcontracting Agreement
A Subcontracting Agreement defines obligations between a primary contractor and subcontractor for project execution. This playbook examines flow-down provisions, performance guarantees, and dispute management.
Dispute Resolution
Negotiation strategy
Ensure the dispute resolution clause aligns with the company's preferred jurisdiction and minimizes potential litigation costs. Consider including mediation as a first step to resolve disputes amicably.
Negotiate for a neutral jurisdiction that does not disproportionately favor the employer. Advocate for clear timelines in the mediation and arbitration process to avoid prolonged disputes.
Essential elements
1
Governing Law
Law applicable to the agreement.
2
Jurisdiction
Court location for disputes.
3
Dispute Resolution Mechanism
Process for resolving conflicts.
Action framework
ACCEPT
Propose edits if the jurisdiction is unfavorable or if the process lacks clarity.
EDIT
Reject if the clause imposes excessive costs or is overly biased.
ADD
Add language to include mediation before arbitration.
PRO TIP
Always specify a jurisdiction that aligns with your strategic interests to avoid unexpected legal challenges.
Real-world examples
FAVORABLE
Balanced Dispute Resolution Clause
"The Agreement shall be governed by and construed in accordance with the laws of [State/Country], and disputes shall be resolved through mediation followed by arbitration in [City, State/Country]."
NEUTRAL
Standard Jurisdiction Clause
"Each party agrees that the courts of [State/Country] shall have jurisdiction over disputes."
UNFAVORABLE
One-Sided Jurisdiction Clause
"All disputes shall be resolved exclusively in the courts of [Employer's State/Country], regardless of the Contractor's location."
Alternative scenarios & positions
Cross-Border Agreements
In cross-border agreements, consider international arbitration to ensure neutrality and enforceability across jurisdictions.
High-Value Contracts
For high-value contracts, include detailed arbitration procedures to manage complex disputes efficiently.
Short-Term Projects
For short-term projects, opt for expedited dispute resolution processes to avoid delays.
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WEEK 3
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