WHY THIS, NOT THAT™ CONTRACTS | The Contract Review Process

DO THIS

Know your company’s procurement and purchasing processes.

NOT THAT

Assume that these processes are not relevant to the contract review process.

WHY

Purchase management must be a shared responsibility. Everyone involved in the process of buying and selling goods and services have a role to play in company decisions in this area because those decisions can impact the bottom line.

When you know your company’s processes thoroughly you will be in the best position possible to ensure that the contracts you are drafting, reviewing, and/or negotiating will meet the needs of your company.

Know if your company has payment terms rules. (How many days does it take to process a vendor payment?)

If your company has “net 30” day rule for payment, but the vendor contract has “net 10” day rule for payment along with a penalty for failure to make timely payments, you company may very well be incurring unnecessary late fees by paying invoices on a 30 day cycle.

If you ask the vendor to revise the contract to include a net 30 day, there will be no issue!

Interested in learning more? Join the convo on LinkedIn!

About the Author

More Articles

About the Author

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

WHY THIS, NOT THAT™ CONTRACTS | Contract Ops Manager

You may think that someone on your team can manage a CLM system, but the recommended practice is

WHY THIS, NOT THAT™ CONTRACTS | Contract Training

There's more to contracts that you already know or learned in law school, which is why ongoing contract

WHY THIS, NOT THAT™ CONTRACTS | Contract Playbook

Having a contract playbook will help streamline negotiations, especially if you have a high volume of contracts to

WHY THIS, NOT THAT™ CONTRACTS | Rejecting Clauses

You can and should reject clauses that don't add clarity to a contract, including redundant terms or unhelpful

Most Recent

Four Ways to be Successful as a Contract Manager

The role of a Contract Manager is to get to know the business they’re in and reflect the

De-Identified Data in SaaS Agreements

There is an increase in the significance of the right of a SaaS provider to “de-identify” or “anonymize”

Understanding Performance-Based Contracting Methods

Using fairly-negotiated and well-managed performance-based contracts can help your company adapt to changes in the supply chain and

6 Critical Elements of Indemnification Clauses in Business Transactions

Strategically crafting indemnification clauses is critical for delineating and distributing the risks associated with business transactions.

Contract Nerds Logo

Download PDF

[download id='9545']
Search
Generic filters