Most business transactions, including the execution of a contract with another firm, subject a company to risk. With contracts in particular, there is always the risk that one side to the agreement will not perform as stipulated, causing a great deal of harm or loss to the other side. Although there is no way to completely eliminate the risk associated with contracting, there are certainly a number of steps that companies can take to mitigate the likelihood, as well as the impact, of a breach or other misfortune. Here are the top tips for successful contract risk management:Read More
Legal contracts are foundational for companies of any size and industry. By codifying the exact relationship between a business and its customers, contracts place weight behind the promises that both parties make to each other and provide a framework for handling disagreements.
Unfortunately, far too many companies are failing to live up to the best practices and standards of contractual risk management. The International Association for Contract & Commercial Management, for example, estimates that companies lose nine percent of their total revenue every year via poor contract management.
From a complex contracting landscape to scarce investments in good contracting processes, the potential issues that you'll face are significant. The following article will give you an overview of the challenges of contract management and what you need to do to make your processes more efficient and productive.Read More
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:Read More
It is no secret that companies in the oil and gas industry enter into contracts that have the potential to be very lucrative. Regardless of where a company is in the production and distribution chain, oil and gas continue to be pretty solid moneymakers. But, because the firms involved are seeking to maximize their profits, they often try to find creative ways to structure agreements. If companies aren't careful, they may end up agreeing to terms that will gradually erode their own earnings. Here are some of the top things to look out for in these sorts of contracts:Read More
For companies engaged in contracting, understanding compliance is critical to survival. High value contracts, in particular, will be subjected to very strict oversight and scrutiny. Obviously, failing to comply with contract terms could mean lost business for a company, but there may be legal consequences and hefty financial penalties as well. And, compliance is not always about an evaluation of an external party's actions, or lack thereof.Read More
For most companies, the in-house attorneys’ roles and responsibilities are not exactly delineated within a concrete list. Instead, their day-to-day duties, and the areas in which they are involved, tend to expand and shift, depending on the existing needs of the company. Obviously, the in-house team spends quite a bit of time reviewing contracts, crafting both internal and external documents and agreements, and helping the executive board make strategic decisions in a manner that mitigates risk.Read More
In a business transaction that involves the sale and purchase of some good or service, the seller of that good or service usually has a bit more power and influence when it comes to shaping the contract between the parties. However, to ensure a positive working relationship, not to mention one that will endure beyond the initial transaction, it is important for sellers to take into consideration what most buyers want from their vendors. Here are several things to keep in mind:Read More
A lot of contracts, if not most, formalize arm's length transactions, essentially implying there is a distant or strictly professional relationship between the parties. In general, these types of contracts are run of the mill, standard form agreements. Even parties who have contracted with each other for years tend to rely on standard contracts.Read More
There are risks associated with contracting, but many of the potential pitfalls can be avoided by adopting the right management approach and using contract management software. Here are five ways that contract management software reduces some of the most prevalent contract-related risks:Read More
The process of contracting is complicated. From establishing relationships to negotiating the particulars to getting the proper approvals, the creation of a single contract can take months if not years. And, because the award phase of the contracting process can be so long and onerous, it is easy to forget that getting the contract signed is the first piece in a massive puzzle. Risk increases in the post-award, management phase of the contract and generally, a contract that fails to deliver in the first six months of the contract fails to deliver overt the life of the contract. Because of the, it is critical that the post-award team is ready and informed. Here are the three most important actions to take to avoid some of the most prevalent problems in post-award contract management:Read More