Once the business executives have closed the deals, the contracts are drawn up, signed and filed away. Only to be retrieved when the contractual relationship takes strain. Or when the finances take strain. Usually both.
Contract compliance reviews should be carried out regularly to identify and analyse the key provisions of all contracts. Stakeholders must understand the risks, and that’s achieved by knowing what’s in the contracts.
Typical key clauses:
• renewal obligations
• service levels
• cost and cost escalation rates
• time sensitive clauses
• information security
• termination procedures
• suspension of service.
It’s a group activity: participation by the relevant business divisions is mandatory. Reviews are valueless when done in isolation.
If the opportunity arises to replace paper contracts signed in ink and filed in cabinets with contract management software, electronic signatures and filing, take it!
When implemented, executive decision makers will have so much clarity. Ignorance is the enemy.
Contact us: www.lexify.co.za