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					                          IPWEA NSW Division Annual Conference 2005



               HIGH SPEED CONTRACT AND REGULATION
                      COMPREHENSION SYSTEM

                             Mr Nathan McDonald, Executive Director

                                 Mustor Institute, NSW Australia

                              start@mustor.com www.mustor.com


Paper Summary

The likelihood and consequence of mistakes within the administration of contracts and regulations
is quite high. As a result, Councils are taking huge risks.

These risks can be reduced by showing your staff that simple patterns exist within these
documents and that these patterns can help them ensure that they administer the contract and
regulation right first time.

Liverpool’s Corporate Manager of Assets & Infrastructure, My Wayne Cooper, recently stated that
“the new high speed contract and regulation system, known as Mustor Chunking, is an extremely
useful tool. It has the capacity to demystify legal/contractual language”.



Introduction                                              checking elements. This can be done by
                                                          taking advantage of the recent discovery of
There are two big problems when it comes to               patterns within contracts and regulations.
contracts and regulations.                                These patterns are known as Mustor
                                                          Patterns and they effectively break the
The first is, comprehending what has to be                contract and regulation down in compliance
done. This is absolutely essential for those              planning and checking elements.
involved in developing plans that ensure that
they comply.                                              Initially this paper introduces the new high
                                                          speed         contract     and      regulation
The second problem is checking compliance,                comprehension system known as Mustor
which is also known as auditing, inspection               Chunking. It will explain:
and testing. Compliance checking involves
comprehending the requirements, comparing                    what it is
it against an actual scenario and then                       who it will help
determining whether compliance or non-                       how it will help
compliance has been achieved.            A lot               when it will help
information is temporarily stored in your head
when you do this. And as contract and
regulations are typically very complex, this              Secondly, it will explain Mustor Patterns, the
task is not as easy as it sounds. And the                 science behind Mustor Chunking.
consequences of getting it wrong can be
quite high.                                               Thirdly, it will explain Mustor Interrogation,
                                                          which is a series of questions that can be
Both of these problems can be overcome                    used to identify the patterns, which ultimately
when your staff break the contract and                    break contracts and regulations down into
regulation down in compliance planning and                compliance planning and checking elements.

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                              IPWEA NSW Division Annual Conference 2005


Mustor Chunking                                           break contracts and regulations into the
                                                          elements required for:
What is it?
                                                             negotiating obligations, offers and
Mustor Chunking is a systematic approach to                   counter offers
breaking contracts and regulations down into                 identifying and comparing choices
compliance planning and checking elements.                   comparing changed clauses with original
                                                              clauses
    Plan how to comply        Check compliance               comparing clauses from multiple sources
        in the future            of the past                 planning, programming and costing
                                                              compliance
                                                             checking and auditing compliance
                                                             analysing workflow requirements and
    Time >>
                                                              developing procedures
                                                             preparing flowcharts, procedures, action
                                                              plans and programs (timelines,
It relies on people knowing that there are                    Gantt/PERT charts)
patterns within contracts and regulations.                   making and reviewing contractual claims
These are known as Mustor Patterns and are                   completing prescribed notices
explained in section 2. To make things                       translating requirements into other
easier a set of questions has been developed                  languages
that help people see these patterns. These
are known as the Mustor Interrogation
Questions and are explained in section 3.                 Each of these will seriously reduce the time it
                                                          takes to administer contracts and regulations.
Mustor Chunking can be validated with:
                                                          Mustor Chunking will also reduce mistakes
     traditional gramma                                  and errors; and this will reduce management
     systemic functional linguistics                     embarrassment.
     Boolean logic
     propositional logic                                 When is it going to help?

                                                          The technique can be equally applied to:
The Patterns can also be highlighted and
mapped with a series of lines, colours and                   agreements
shapes, but unfortunately time does not                      bids and tenders
permit us exploring this concept in this                     codes
conference. They can also be converted into                  contracts
Subconscious Compliance Formulas, which                      conveyances
are tremendously valuable when it comes to                   deeds
checking compliance.                                         finance loans
                                                             insurance policies
How is it going to help?                                     leases
                                                             purchase orders
The Drainage Project Engineer of Liverpool
                                                             offers and counter offers
Council, Mr Steve Martin said in a recent
                                                             specifications
workshop, “This technique is the most helpful
tool I've seen to clarify the precise contract               rules
requirements. It raises awareness of so                      industry standards
many issues that could have major                            government legislation and
consequences in completing contracts”.                       statutory regulations

Mustor    Chunking   has    tremendous
commercial value, because it effectively                  It becomes very powerful when:


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                           IPWEA NSW Division Annual Conference 2005


   government regulations, contracts,                     Mustor Patterns
    specifications and business procedures
    are complex and confusing                              Mustor Patterns are the legal logic patterns
   government regulations, contracts,                     within government regulations and contracts.
    specifications and business procedures                 They appear when these documents are
    are regularly referred to                              broken down into intensity and structural
   the stakes, risks and costs are high                   dictators, limiters and subject matter.
   the need for assurance, quality and
    compliance is high                                     The initial two categories can be broken
   the margin of error is low                             down accordingly:
   the competition is high
                                                              intensity dictators
                                                                   o mandatory requirements
Mr Mike O’Hara, one of Liverpool Council’s                         o elective requirements
Project Managers stated in an induction                       structural dictators
program earlier this year that “the Mustor                         o timing dependencies
Chunking technique exposes the complexity                          o conditions
of contracts and regulations. The concepts                         o exceptions
will be usefully applied. It also created                          o alternatives
awareness of subconscious comprehension”.                          o multiples

Who is it going to help?
                                                           The chart in appendix A graphically displays
Mustor Chunking will be beneficial to:                     these subsections.

   Government Officials                                   The following table and chart shows the
   Contract Administration staff                          relative percentages that these words make
   Supervisors, Superintendents and                       in AS 4000 General Conditions of Contract, a
    Inspectors                                             typical construction contract used by many
   Union Representatives                                  councils.
   Cost and Time Estimators
                                                                   Intensity dictators    3%
   Purchasing Officers, Accountants and
    Accounts Clerks
                                                                   Structural dictators   5%
   Trade Apprentices and University
    Students                                                       Limiters               0.1%
   Lawyers, Solicitors and Barristers
   Mediators, Arbitrators Adjudicators and                        Subject                91.9%
    Dispute Resolvers
                                                                   Total                  100%
Uniqueness and exclusivity

Research has also shown that the Mustor
Chunking technique is unparalleled in any
legal, contract, logic or linguistic university
degree. It is included in traditional gramma
text books.     Surprising, considering that
contracts and regulations are fundamental to
our working lives.

The techniques are protected by patents,
copyrights and trademarks. This means that
they are only available from a licensed
Mustor Consultant.

                                                  Page 3
                             IPWEA NSW Division Annual Conference 2005


                             Structural                      they are applicable to everyone from
             Intensity       dictators                        laymen to lawyers –from the kitchen table
             dictators                                        to the court room
                                                             they are easily taught to everyone from 5
                                 Limiters                     to 55 years old



                                                         Mustor Interrogation
                   Subject                               Mustor Interrogation is a suite of nine
                   matter                                questions that can be used to break
                                                         contracts and regulations down according to
                                                         Mustor Patterns.
The following table and chart summarises
this data. In effect, we are only focusing on            These nine questions are to be asked of
8% of the words.                                         EVERY clause. The questions are iterative.
                                                         Once you find an answer it is important to
        Intensity          &                             ask them again.
        Structural dictators
        and Limiters         8%                          1. Is it mandatory?
                                                         2. Is it elective?
        Subject                    92%                   3. Is it timing dependent?
                                                         4. Is it conditional?
        Total                      100%                  5. Any exceptions?
                                                         6. Any alternatives?
                                                         7. Are there multiple elements?
                                                         8. Is the instruction, condition or alternative
               Mustor                                       limited?
       Intensity & Structural                            9. Where are the group boundaries?
       Dictators, and Limiters

                                                         Mr John Maretich, the Civil Engineer
                                                         responsible for the Infrastructure Asset of
                                                         Port Stephens Council, stated recently, “I
                                                         think these questions are so valuable I have
                                                         them stuck up on my office wall”.
                      Subject matter                     Also in a recent training course at Liverpool
                                                         Council, Mr Keith Cowley, Project Manager of
                                                         Buildings and Recreation said “I found the
                                                         Mustor Chunking technique to be very eye
What makes these patterns significant, is
                                                         opening.      Once taught, the questions
that:
                                                         became very natural in assisting the
                                                         interrogation of contract documents”.
   they occur in contracts and regulations
    that are written in complex legalese as
                                                         Just like Mustor Patterns™, these questions
    well as those in plain English
                                                         are valid when contracts and regulations are
   they are universal across all languages              written in complex legalese as well as those
   they are based upon a proven system of               in plain English. They are also valid when
    logic                                                clauses are contaminated, multi-layered,
   they are very predictable                            grafted together and full of cross references.
   they are self evident and self validating            They too apply to all languages.



                                                Page 4
                                             IPWEA NSW Division Annual Conference 2005


How your staff answer these questions                                                Conclusion
depends upon their knowledge of language,
logic and law. The following figure expands                                          In conclusion, Mustor Chunking will reduce
these thoughts.                                                                      the time it takes to:

                  Grammar                            Boolean Logic                      negotiate contracts, specifications and
                                                       analysis
                                                                                         regulations
     Punctuation
        rules                                                                           identify and compare choices
                                                            Propositional
     Systemic             Language           Logic
                                                           Logic analysis               compare changed clauses with original
    functional
    linguistics                                                                          clauses
                                                                                        compare clauses from multiple sources
                                                            Contra
         Government                    Law               preferentem                    plan, program and cost compliance
      interpretation rules                                   rule
                                                                                        check and audit compliance
             Literal                                   Reasonable
              rule                                    construction                      analyse workflow requirements and
                                                          rule
                    Ordinary rule
                                                                                         develop procedures
                                                Intention
                  (aka golden rule)                rule                                 prepare flowcharts, procedures, action
                                      Read as                                            plans and programs (timelines,
                                      a whole
                                        rule                                             Gantt/PERT charts)
                                                                                        make and review contractual claims
                                                                                        complete prescribed notices
                                                                                        resolve disputes
For greater contract and regulation analysis,
                                                                                        train successors
these questions are supported by the
following Mustor management systems:                                                    translate requirements into other
                                                                                         languages
     Mustor Highlighting
     Mustor Compliance Checking
                                                                                     Mustor Chunking will also reduce mistakes
     Mustor Development and Drafting                                                and errors.
     Mustor Subconscious Compliance
      Formulas
     Mustor Multi Scenario Compliance                                               References
      Checking
     Mustor Mapping                                                                 The information for this paper has been
     Mustor Margin Mapping                                                          extracted from the following three Mustor
                                                                                     Bootcamp courses:

                                                                                     1. Mustor Chunking
                                                                                     2. Mustor Compliance Checking
                                                                                     3. Mustor Development and Drafting




                                                                            Page 5
             IPWEA NSW Division Annual Conference 2005



Appendix A




                              Page 6
                   IPWEA NSW Division Annual Conference 2005



Author Biography

                    Nathan McDonald is an author of over 15 books, manuals and
                    reference wallcharts on understanding and administering contracts,
                    specifications, codes of practice, government regulations.

                    He is also the founder of multiple training programs that specialise
                    contractual and regulation review, administration and dispute
                    resolution.

                    Nathan is the Executive Director of Mustor Insitute and has been
                    involved in the development a suite of over eighty products that
                    increase the speed and accuracy of contract and regulation
                    comprehension, interrogation, negotiation, articulation, translation,
                    compliance checking, development and drafting.



                    Postal Address:

                    PO Box 1447, Maroubra, NSW 2035

                    Tel: 02 9344 3816
                    Fax: 02 9344 4614
                    Mobile: 0418 743907
                    E-mail: start@mustor.com

                    Website: www.mustor.com




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