Weak Contracts and Risk Exposure
Engaged as pre-award reviewers, we brought the experience of having delivered major automation programs from both the vendor and client sides. We performed a structured audit across all contract sets — including builder, automation vendor, and design interface scopes — ensuring:
• Responsibilities were clearly assigned and commercially fixed
• Scope boundaries were locked across trades, with no room for finger-pointing
• Contractual protections reflected the intent of AS4000/4910 standards
• Critical automation clauses — like WMS/WCS responsibilities, interface handoffs, and performance triggers — were embedded
• All interfacing risks (power, slabs, racking, sprinkler, etc.) were brought to the surface and resolved up front
Over $1M in future variation and delay exposure was eliminated before any contract was signed. As the program progressed, several of the issues we had identified — and embedded protections for — began to surface. Thanks to the structured governance established early, these challenges were resolved quickly and fairly, with responsibility assigned to the correct party. This not only protected the client financially — it also prevented vendor-client relationships from breaking down under pressure.
Had these structural gaps remained, the resulting disputes would likely have caused significant cost escalation, project delays, and long-term damage to the trust required for future phases or ongoing support.
Before a dollar was spent or a contractor stepped on site, clarity was secured. This wasn’t just about risk management — it was about enabling long-term collaboration. With the right structures in place, vendors could operate with confidence, builders knew their lane, and the client had the commercial tools to govern without resorting to legal triggers.
Too many automation programs begin with ambition but lack structural integrity. This one didn’t. By resolving risk up front, we protected not just the client — but also the integrity of relationships between vendors, builders, and internal stakeholders. Because when scope is vague and contracts are rushed, it’s not just money at risk — it’s trust, morale, and momentum. And in large-scale DC builds where service and partnership extend long beyond commissioning, that trust is everything.
