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A Case Study

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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  1. A Case Study Resolving Conflict- PNC Infratech JV

  2. 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

  3. 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.

  4. 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discount in July-2011- Amount Rs 22 Lacs up to March-11- rising further • As per HO directive discounts have been withdrawn wef April-11 • DO is not able to up the retrospective proposal • DO issues letter to customer on violation of MOU –Upliftment not in line with projected volume

  5. Conflict • Customer threatens legal action • Produces Joint Reconciliation • Complaints to SO/HO • DO retaliates with legal response • Ego clash • Dead lock for 3 months

  6. 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

  7. Learnings • Monitoring of Contracts • Keep communication channels open • Avoid Ego Clashes • Better accept mistake than hide • Convince through Discussion rather than letters

  8. Thank You

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