Statechart modeling of contractual disputes

Abstract

The benefits of contract management can be usually observed in terms of ambiguity minimization, disputes avoidance and smooth completion of processes arising from contractual agreements. Neverthless, uncertainty still plays its role: contractors might not have detailed information on the objective to achieve, the realization context could be not fully identified, the assumptions made at contract signing were misleading. These are just few examples of threats that can undermine the successin the achievement of contractual goals opening the door to stakeholder disputes especially when complex projects and virtual enterprises are involved. In this paper we propose a statechart model of contract management activities that formalizes the main interaction among contractors. The model represents the three fundamental states of a contract life cycle: Preparation, Execution and Termination, and is taken as reference for the ordinary life cycle management activities. In particular, we deepen the problem of dispute management providing a detailed representation useful for the dispute avoidance, if needed through the support of a mediator. The model also provides a set of transition rules that formally specify the behaviour of a reactive system for the support of contract and dispute management.