project management skills for lawyers dr. stefan winghardt managing director, head of bt legal,...
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Project management skills for lawyers
Dr. Stefan WinghardtManaging Director, Head of BT Legal, Germany and
Austria, Munich, Germany
“Successful Projects require the legal department to provide more than just
traditional legal advice…”
Bundeskanzleramt Berlin
Construction start Feb 1997
Completion (planned) April 2001 (end of 1999)
Forecasted costs 205 mio Euro
Real costs 238 mio Euro
Source: Süddeutsche Zeitung 2./3. März 2013/Nr. 52
Jakob-Kaiser-Haus Berlin
Construction start Feb 1997
Completion (planned) Jan 2002 (1999)
Forecasted costs 454 mio Euro
Real costs 577 mio Euro
Hauptbahnhof Berlin
Construction start Sep 1998
Completion (planned) May 2006 (2002)
Forecasted costs 700 mio Euro
Real costs 1,2 billion Euro
Some typical Projects…..
Typical Flaws in Projects
Wrongful Performance/
Bad Service
Additional costs incur
Service Gaps
Late Delivery/Roll-Out
Milestones are missing
Project
Project Management
Legal Project Management
is any undertaking characterized by the singularity of its overall requirements, in particular regarding objective, conditions and constraints (time, resources, budget, scope) - DIN 69 901
is the entirety of lead functions, organizations, techniques and means to handle the project - DIN 69 901.
is the organized, coordinated treatment of legal issues within a project, a system of problem identification and solution- Kappellmann, Juristisches Projektmanagement
Definitions
Project Management deals with the question how to meet given objectives (obligations) efficiently.
Legal in its traditional role deals with the question what are the legal obligations.
Legal Project Management identifies what are the problems along with the legal obligations and how can they be resolved organizationally.
In other words:
Legal Project Management ensures
Balanced Contract Content
AND
Successful Implementation of Contract Deliverables
Differences between Legal Project Management and traditional Legal Advice – Role:
Organizational task
Ex-ante provisioning (pro-active)
Information gathering
Risk mitigation strategy
case-based solution
ex-post clarification (re-active)
“da mihi factum, dabo tibi ius”
legal analysis
vs.
Business expectations to Legal RoleMost relevant contract related risks
Source: Survey Contract Management 2010/ Bearing Point
Tips – Tools for Legal Project Management
Make Pursuit Hand over GateContract Sign OffBid Sign offMid PointQualification & Bid sign On
Internal Authorisation Gates1
Negotiation tracker on key assumptions & dependencies, terms
2
Tips – Tools for Legal Project Management
Example Risk Register:
Tips – Tools for Legal Project Management
Risk Register with weighted risk impact/ probability and with mitigation strategy
3
Tips – Tools for Legal Project Management
Action List5
Owner Activity Due Date Review StatusOpen Closed
Tips – General Aspects
1. Have a clear Risk Strategy in place!
2. Ensure transparency of team collaboration!
3. Apply two-man rule on any binding commitments!
4. Don‘t miss legal check for technical documents!
5. Establish personal contact to your legal counter-part as early as
possible
Business expectations to Legal Role
Areas of law mainly covered
internally vs. externally
Source: ACC Legal Department Survey 2012/ Laurence Simons
„There is nothing like an ironclad contract, but…“
19
1. Prevent Additional Costs
Pro Customer Pro Supplier
• TCO Model (As-Is Model)
• Scope Sweep Clause
• Flexible Resourcing Clauses (Termination)
• Due Diligence
• Value for Money Mechanisms(Benchmarking, Price Indexation, Price Adjustment, Open Book Calculation, Most Favored Customer- Clause)
• Technical Refresh/Upgrade/Update
• Green Field Approach (Bottom Up Calculation)
• Delimitation Clause
• Minimum Commitments and Exclusivity
• Assumptions & Dependencies
• Change Management
© BT Germany
20
2. Avoid Service Gaps
Pro Customer Pro Supplier
• Functional Service Description
• Integrator Model (Prime Contractor end-to-end responsibility)
• Acceptance Procedure
• Joint debtors
• Exit Clause
• Individual Performance Description
• Co-operation / Supplier model
• Delivery Clause
• Single contract relationships
© BT Germany
Pro Customer
• Binding Dates
• Milestone Penalties
• Mali Provisions
• No payment during Ramp Up Phase
Pro Supplier
• Target Dates
• Co-operation / Supplier model
• Boni Provisions
• Milestone Payments
3. Reduce Risk of Late Delivery / Missing Roll - Out Milestones
21
4. Ensure contractual performance / good Service
Pro Customer Pro Supplier
• SLA Penalties
• KPI / Balanced Scorecards(Customer Satisfaction)
• Step-In-Rights
• Withholding payments
• Warranty (fault repair, termination) / Liability
• warranty scheme under governing law
• Limitation of Warranty /Liability
© BT Germany
• Condition Precedent
• Due Diligence / True Up
• Lab test / pilot phase
• Compliance Obligations
• Audit (Transparency, Compliance)
5. General Measures to deal with uncertainty
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