Imrecon

Firms enter into longer term contracts, for example concessions or franchises, with a view to achieving commercial objectives, but contractual mechanisms can have unintended consequences. 

Contracts which appear sensibly structured when first drafted can become detrimental under combinations of circumstances that were not thought about.   In an uncertain and complex world, circumstances have a tendency to combine in unexpected ways.

Imrecon helps clients diagnose existing contracts and design new contracts using techniques originally developed to inform regulators.  Contracts affect the incentive environment for the parties in a precisely analogous way that economic regulation does. 

Imrecon analyses the underlying structure of the contract's terms to identify weaknesses and fault lines and, where necessary, uses simulation and other modelling techniques to help understand the interaction between the contract and the underlying economics, the markets involved, the commercial interests of the participants and regulatory and other constraints.  This kind of approach can help identify critical assumptions behind the design and the circumstances that would threaten the commercial intent of the contract.

.