A dispute is a disagreement between CERN and the Contractor and/or a non-compliance that may have serious consequences on the contract. The technical officer shall inform the procurement officer as soon as the dispute raises, and shall avoid negotiating on his own. Both technical and procurement officers shall seek an amicable settlement and make sure that CERN speaks “with one voice” in front of the Contractor.

Inform the Procurement Officer as soon as possible.

Warning:

Document all non-conformities (pictures, reserves in acceptance reports).

Keep all records in writing (emails, correspondence, history of facts, minutes of meetings, etc.).

Assess the situation and set an action plan:

• Collect documentation, the history of exchanges and discuss,
• Identify options (penalties, withdrawal of bank guarantee, plan B, if any, performance of the work by a third party at the expense of the Contractor, partial termination, etc.),
• Prepare negotiations, if needed,
• Review termination terms of the contract,
• Consult hierarchy,
• Etc.

Tips: Stick to the contract. Inform the Contractor on a need-to-know basis in due time.

Use the contractual tools to settle disputes (penalties, withdrawal of bank guarantee, letter of notice etc.)

Hold meeting(s) with the Contractor, as appropriate.

Tips: Stick to the contract. Inform the Contractor on a need-to-know basis in due time.

Use the contractual tools to settle disputes (penalties, withdrawal of bank guarantee, letter of notice etc.)

Assess the situation again, adapt the action plan, make every effort to have the situation back on track.

Tips: This requires a very close and transparent collaboration between the Technical and Procurement officers. The Technical officer shall make sure that the Procurement officer is involved in all important meetings and at the time when next steps are decided.

If the situation does not improve, as a last recourse and in agreement with both hierarchy, prepare a letter of notice ensuring that it:

• Includes a description of facts, non-conformities, defaults,
• Requests the implementation of the remedial measures etc.,
• Defines clear and reasonable deadlines,
• Informs the Contractor of the contractual consequences in case of failure to remedy the situation. 

Send the notice to the Contractor by registered letter, with the Technical and Procurement Officers’ GLs in copy.

File the letter of notice (both paper and electronic format).

After the deadline is reached (usually not less than four weeks), assess the situation again. Take a decision:

• Continue the contract;
• Consider asking a third party to perform the work at the expense of the Contractor, as foreseen under the Contract;
• Draw the bank guarantee, where applicable;
• Partially terminate the Contract (reduction of scope);
• Amend the contract with new conditions or deliverables;
• Terminate the contract (refer to section “Termination of the contract”).

Tips: Beware: notify the Contractor of the decision as soon as the deadline has elapsed, failure to do so may be interpreted by Courts as a decision to continue the contract.