A case study
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A Case Study. Resolving Conflict- PNC Infratech JV . Customer- PNC Infratech. Important Customer- Executing projects all over India MPSO- POL Business 60 TMT (Bitumen, HSD, FO) 3 Projects in MPSO Ratlam Gwalior Airport Morena-Dholpur MOU for 3 Projects wef Sep-2009 for 30 months

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A Case Study

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A case study

A Case Study

Resolving Conflict- PNC Infratech JV


A case study

Customer- PNC Infratech

  • Important Customer- Executing projects all over India

  • MPSO- POL Business 60 TMT (Bitumen, HSD, FO)

  • 3 Projects in MPSO

    • Ratlam

    • Gwalior Airport

    • Morena-Dholpur

  • MOU for 3 Projects wef Sep-2009 for 30 months

  • Commercial Terms- Agreed discount for the 3 Projects


A case study

Customer- PNC Infratech

  • Project Completion Status

    • Ratlam- – Sep-2010

    • Gwalior Airport- March-2011

    • Morena-Dhoplur- Delayed

  • DO had approval for commercial terms up to Dec-2010.

  • Missed seeking further approval.

  • FO signs Joint Reconciliation statement with customer showing pending discount up to 31.3.2011- Does not put up approval note.


A case study

Conflict

  • Customer claims discount in July-2011- Amount Rs 22 Lacs up to March-11- rising further

  • As per HO directive discounts have been withdrawn wef April-11

  • DO is not able to up the retrospective proposal

  • DO issues letter to customer on violation of MOU –Upliftment not in line with projected volume


A case study

Conflict

  • Customer threatens legal action

  • Produces Joint Reconciliation

  • Complaints to SO/HO

  • DO retaliates with legal response

  • Ego clash

  • Dead lock for 3 months


A case study

Resolution

  • SO intervenes

  • Invites Customer for discussion with DO

  • Customer explained constraints on revised commercials

  • Agrees to revise discount wef July-12 onwards.

  • HO approached for discount retrospectively Jan-July-12

  • Customer withdraws legal action

  • Renews MOU with revised terms


A case study

Learnings

  • Monitoring of Contracts

  • Keep communication channels open

  • Avoid Ego Clashes

  • Better accept mistake than hide

  • Convince through Discussion rather than letters


A case study

Thank You


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