Contract Management

Contract Management or Contract Lifecycle Management is a key focus for companies to ensure their obligations are fulfilled and they are not leaving themselves open to any unnecessary risks. There are also many times a company needs to produce their contracts, such as during an acquisition, merger, investment, divestiture or other diligence processes. It’s never too early to implement good contract management processes. In fact, companies save 5-10% per year by having a contract management platform in place!

Here are issues we have heard from our customers prior to using DealSafe’s Contract Management platform, and an example of the money you can lose by not having a good system in place:

I forgot to…

  • cancel that auto renew
  • renew the contract
  • make sure we have a contract in place before starting work

I paid the wrong amount

  • I paid the invoice without verifying it matched what’s in the contract

I lost the contract

  • Joe was in charge of that contract, but he left the company (and IT wiped his computer)
  • We changed email systems and all my contracts that were in my email are now deleted
  • I ran out of space on my shared drive, so I had to delete some older files to make room

I under/over invoiced

  • I invoiced for less than the contract lists – your sales rep negotiated in an escalator on price after year 1, but your finance department didn’t know to increase the invoice for year two
  • My partner just raised price by 10%, but I forgot the clause where they can’t increase price by more than 5%
  • I didn’t check the contract and missed a price decrease I could have asked for

I entered the data wrong

  • I have “fat fingers” and mistakenly entered the payment amount wrong (why are you manually entering anything?)

I missed / didn’t know the due date

  • I forgot to tell the engineering team about that new feature I promised – now it’s not built and past due

I didn’t receive what was agreed to

  • I negotiated that price decrease after year 1, but I’m not sure the finance team knows about it
  • My partner missed their delivery date, but they didn’t compensate me for being late – I forgot the legal team had spent a week writing a missed delivery clause into the contract

I misinterpreted the contract

  • We don’t have anyone on staff with the time or expertise to read all these contracts and make sure we are sticking to them

 

Why worry about these things anymore when DealSafe makes it so easy and automates the process. Learn more today and signup for a demo below.

 

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