Construction Firm Mitigates Contract Risks with AI

A I • Jul 13,2024

A German construction firm faced hidden risks in a seemingly standard contract with a Saudi Arabian supplier. To address these concerns, they implemented an AI-powered contract review tool. This technology identified potential issues like unclear delivery dates and lopsided penalties, allowing the company to proactively renegotiate and secure a more favorable agreement.

Challenge:

A German construction company, despite identifying a local supplier for their Saudi Arabian project, remained cautious of potential risks hidden within the contract.

Results:

☑️ Identified Red Flags: Unclear delivery dates, excessive penalties, and unbalanced payments.

☑️ Proactive Renegotiation: Hidden risks uncovered by AI prompt contract renegotiation

☑️ Mitigated Risks: Achieved a mutually agreeable revised contract addressing initial red flags.

AI Solution:

In search of a solution to mitigate hidden risks within a seemingly straightforward contract with a Saudi Arabian supplier, the German construction company implemented bestAgreement.ai. This AI-powered contract review tool utilizes a feature called Red Flag.

The bestAgreement’s “Red Flags” feature leverages advanced AI algorithms to analyze contracts, identifying potential issues that could negatively impact the client.

By applying this tool, the company proactively identified unfavorable terms within the contract, such as unclear delivery dates, excessive penalties for the construction firm, and unbalanced payment structures.