Risk and contract management in space programs

Viac o knihe

The space industry is crucial for global economic and technical advancement, particularly within the European Union, where it encompasses vital operational programs like telecommunications, navigation, and Earth observation. This paper examines contract and risk management specifics in the European commercial space sector. With an increasing number of public sector placements in the global space market, the industry's exposure to technical and business risks highlights the need for effective risk management and its contractual implications. The author explores how project risks are mapped and coordinated within the European regulatory framework, emphasizing strategies for mitigating these risks through contractual conditions. An example from ESA procurement contracts reveals that pricing practices are influenced by programmatic constraints. Additionally, business risks in commercial programs introduce cost-dependent uncertainties affecting both parties in a contract. The paper outlines a comprehensive approach to risk analysis, assessment, and management, emphasizing that effective project risk management begins during project planning and tender preparation, rather than at contract signing. This proactive approach to addressing cost, schedule, and performance risks within contractual provisions is essential for ensuring overall program success.