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22 Annual Report 2020-21
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COST OVERRUN LIABILITIES INTELLECTUAL PROPERTY (IP)

• Costs may increase in projects due • Our project execution activities may • Although we protect our
to various reasons like: result in liability as per Contract intellectual property through
conditions. contractual arrangements,
¶ Higher quantum of resources registration, licensing, NDAs, etc.,
required. • Force Majeure conditions being we may not be able to prevent our
activated.
¶ Schedule delays. • We could be exposed to significant • IPs’ infringement completely.
KEY RISK AREAS ¶ while being deployed on the monetary damages, claims or or purposely cause an infringement
Our employees could inadvertently
Resources being unoccupied
reputation risks due to deficiencies
of the client’s or third party’s IP
project.
in service, any catastrophic event at
rights.
our project sites, etc.
Litigation to determine the scope
•
of IP rights, even if ultimately
successful, could prove to be costly.

• Studying secondary data to identify • Adequate professional liability • Strengthen process, contracts &
issues/risks, quantify the same and • insurance at the organisation and other mechanisms to safeguard our
IP, confidential information & trade
project level.
factor into the prices.
MITIGATION STRATEGIES management best practices to avoid taking up significant liabilities, • Provide training to employees on
secrets.
Proper due diligence at bid time to
Follow project and contract
•
the importance of respecting IPs
adhering to contract requirements
avoid cost overruns.
of our company and those of other
and professional best practices to
stakeholders, and the high price
prevent the imposition of penalties
or liabilities.
that we might become liable to pay
in case of IP infringements.

• Lower profitability. • • Unexpected and huge costs. • • Unexpected and huge costs.
Negative impact on profitability.
Consumption of a significant
Disputes with client.
•
AREAS IMPACTED • Negative impact on reputation and • amount of senior management’s
attention and time.
brand value.
Negative impact on reputation and
brand value.

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