Contract deadline not met. What now?
The execution of a complex ICT project often takes longer than planned, resulting in the intended delivery date not being met. This can result in unpleasant consequences for all parties. For example:
An ICT company carries out a large assignment which must lead to the implementation of a Document Management System (DMS). This DMS system is of great importance considering a reorganization, so timely delivery is a "must". The client therefore imposes contractual provisions whereby the ICT company is liable for both direct and indirect (consequential) damages if the project is not completed on time.
During the execution of the project the data structure appears to be more complex than originally estimated. As a result, the contractually agreed deadline cannot be met. The client no longer has any confidence in the IT company and holds it liable for lost turnover and profit. Such claims are not covered by many policy conditions for (professional) liability. Only a few conditions offer (adequate) coverage for this.