Parties can only share value if they create value. Creating value means finding the right partner, managing risks, and doing what other partnerships can’t easily do.
Competitive advantage from contracts
We help clients gain competitive advantage from their contracts. The economics of contracts can be different each time. Getting a contract that creates the most value means understanding the economics of the market, of the transaction and of the parties.
We favour rigorous economic analysis over rules of thumb. That means we start with the business and the markets in which it operates. We look at the competitive dynamics within markets and the economic value of scarce assets and capabilities. We consider information and risks, and the implications of these forces for bargaining power and contract design.
Opportunities come in many forms. We have advised on a range of contractual arrangements from generators and entrepreneurial transmission providers selling their capacity to state procurement of the private provision of services, and from the provision of drought insurance to the payment by the Commonwealth for the closure of carbon intensive generation in the NEM.