HomeSituationsProjects & contractsLong-term contract friction
TN/SIT/28
Edition 2027 · effective 1 January 2027
Projects & contracts · Long-term contract friction
The contract was signed for ten years. The world changed in two.
Long-term supply, energy, outsourcing and concession contracts must adapt. A Standing Neutral or facilitated renegotiation helps them adapt without breaking.
§ 01What it looks like
Recognise it early. The earliest moment is the cheapest.
What you notice first
Small, and easy to explain away.
- Price mechanisms no longer reflect reality
- Change requests are refused
- Performance regimes are gamed
- Termination is discussed
What waiting can cost
Usually more than the original issue.
- Continuity of service
- Value over the remaining term
- Public interest
§ 02The Neutral route
Usually: Standing Neutral.
Long relationships need a standing way to adjust, not a single dispute.
Standing Neutral
The parties decide. The Standing Neutral is available, informed and activated by rule.
Also used · ConsensualFacilitation
The group decides. The facilitator owns the process.
Also used · AdvisoryNeutral Evaluation
You decide. The evaluator advises.
§ 03The steps
What a good process looks like.
- Identify what has changedBefore anything else01
- Use review clauses in good faithThe moment independence enters02
- Appoint a Standing Neutral for the remaining termWhere the work is done03
- Evaluate disputed economics independentlySo it holds04
§ 04Prepare and avoid
What to bring. What to leave out.
(Bring)
01
Contract and change history
02
Performance data
03
Market changes
04
Each side’s needs
(Avoid)
✕
Strict enforcement that destroys the relationship
§ 05Your version
Every situation is different. Describe yours.
§ 06Related