Recent Posts by Tara Naughter

Why and How to Include a “Change of Control” Clause in Business Contracts

Contracts are inherently risky, and a number of things can go wrong that may result in a costly contract dispute. Of course, there may be a change in circumstances that is not even addressed in a contract, and thus contesting any such unwanted change is not even a possibility, or perhaps there is only a remote chance of success in the courtroom. One rather significant change that is quite likely to occur and yet not often addressed in contracts is a change in the structure or ownership of one of the parties to the contract. Companies are bought, sold, and merged all of the time, but contracts are often silent as to the impact that such a change should or will have on the existing contract. This is obviously a mistake as a change in ownership may cause changes, both intentional or inadvertent, to the established arrangement. For example, a newly formed entity may change vendors or subcontract with new parties, situations in which the nature, quality, or timing of contractual obligations is altered.

But, this potential scenario is easily avoided by simply including a provision in a contract that explicitly details how the contract must be treated in the event of a change in control. For example, a company may wish to render the contract void if the other party to the deal undergoes a change in ownership. This may be an extreme choice, but there has to be predetermined options clearly written into the agreement. Here is how to include a change of control clause in business contracts:

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A Brief Guide to Contract Management Software and Plans

Anyone involved in contract management needs to learn the basics first. At its simplest, contract management is about tracking performance and addressing any issues throughout the duration of the contract. A Report from the Journal of Contract Management found that 71% of companies misplaced 10% of their contracts. In 2015, the International Association for Contract and Commercial Management (IACCM) suggested that new technology could spark a contract management revolution, but only if businesses are ready to fully embrace the new tech's potential.

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The Pros and Cons of Open Source Contract Management Software

As you consider contract management systems, you may encounter the question of open source or proprietary software solutions. These types of systems offer different advantages and disadvantages when it comes to cost, flexibility, support, and other considerations. You will need to take your organization’s priorities and resources into account to decide what is best for your needs. We’ll go over some of the main pros and cons of open source software to help you determine whether it is a viable option for your organization.

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5 Contract Management Best Practices for Government Contracts

For many businesses, landing a government contract can become a much welcomed source of steady income. Of course, proper and timely performance will be of the utmost importance, as government agencies and entities will not tolerate any lapses or delays. Obviously, all contracts should be handled in a professional manner, but the consequences of breaching a government contract can be even more dire than is the case with other types of contracts. Thus, here are five best practices for managing government contracts.

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3 Cost-Saving Strategies for Outsourced Contracts

Contracting with external parties for the provision of goods and services is an inevitability for most companies. Depending on where a vendor is located and the scope of the services needed, long term agreements can become quite costly over time. Procurement professionals know all too well that cutting costs wherever feasible is critical to a business’s profitability and survival. But, when there are limited options available or a company is crunched for time, it may be necessary to enter into a contract with the first firm that presents an offer, irrespective of the projected costs of the arrangement. In these instances, companies must engage in periodic assessments over the life of the contracting relationship to identify potential ways to cut costs. Here are three cost-saving strategies for outsourced contracts:

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4 Best Practices for Contract Management Software Implementation

For companies that have not yet made the transition to a cloud-based contract management solution, taking the time to initiate this change may seem like a daunting prospect. Depending on the size of a company’s contract portfolio and the number of personnel devoted to contract management, moving a large quantity of files and documents over and then learning how to use a new software system will inevitably take a bit of time. One of the best things the contract management team can do is plan for the implementation process to ensure adequate preparation takes place in advance of the switch. Here are four best practices for contract management software implementation:

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4 Best Practices for Managing an Underperforming Contract

Dealing with contracts is probably a daily occurrence at many companies. Hopefully, there is a coherent contract management strategy in place, as well as a sound software solution that facilitates oversight. Of course, even if there is a good system in effect, there is always the chance that one or more contracts will not perform as expected. It is downright impossible to control the actions of others, and in some cases, there are circumstances beyond anyone’s control that will influence the way in which contractual obligations are met. In the event that a contract management team is faced with one or more underperforming contracts, a proactive approach to managing the situation should help avoid a complete breakdown and subsequent legal battle. Here are some best practices for managing an underperforming contract:

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4 Steps for Managing Outsourced Contracts

Outsourcing is the way of the world. Businesses of all sizes frequently find themselves in situations in which they simply do not have the time or resources to take care of all of their operational activities. Thus, it is often necessary to recruit professionals external to the company to help handle certain matters. This is true across sectors and throughout many departments within a business, including the contracting world. In many cases, companies subcontract with other firms to provide a service independent of or in conjunction with their own service delivery. It is clearly risky to outsource certain activities, as it is harder to control for quality, but with the right management approach, it can prove to be quite useful. Here are some tips for managing outsourced contracts:

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5 Things Your Contract Administration Software May Be Missing

Not all contract management systems are created equal. One advantage of using a digital storage solution is greater knowledge of where contracts are. Frustration over locating contracts and determining status is common—we’ve heard someone joke that the local pizza parlor’s app could tell him the moment they added his extra anchovies, and yet he couldn’t easily pull up an important contract. Get swept up focusing on basic functionality, and you might miss a chance to evaluate important features that can help your organization save money and control risk.

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Reporting in ContractWorks Has a Whole New Look

You have asked for it and we listened. ContractWorks reporting interface has a whole new look, making it more interactive, and easy to use.

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