3 Contract Management Tips for Business Owners

Businesses of all sizes rely on contracts to uphold agreements between employees, partners, vendors, contractors, clients, and more. But the unfortunate reality is that contract issues can arise anytime, and businesses must be prepared. While it’s impossible to eliminate the risk of legal concerns, there are steps you can take to mitigate your risks.

#1. Organize and Maintain Your Contract Files

The last thing you want to worry about when a problem pops up is tracking down a contract. Create and maintain an organized system for all your contracts so you can easily access and review any documents at any time. You can also create a document outlining when every contract expires to stay ahead of contract renewals.

With so many document storage options available today, there’s no shortage of platforms designed to help you streamline your contract management efforts. Take advantage of technology to create strong document management practices in your organization.

#2. Implement Strong Contract Tracking Processes

It’s easy to send a contract out for signature and then forget to get the signed version back, especially when managing many projects and contracts. Create a process to remind yourself to follow up on contract signatures and save final versions in your designated contract repository. If you need to pursue legal action (or defend yourself against one) and realize the contract was never signed, it could open up a new area of problems.

If you have multiple employees managing this aspect of your business, make sure you spell out roles and responsibilities, so your team knows who is responsible for ensuring contracts are fully executed and saved.

#3. Standardize Your Process, but Customize the Details

Standardizing your contract process is a great way to stay organized and ensure you’re managing your contracts appropriately, but take the time to review and personalize each agreement for that specific situation. Define expectations, deliverables, deadlines, etc., so there’s no confusion about what each party is responsible for.  Contract templates are great, but don’t forget that each contract should be personalized to address the nuances of every business transaction.

Contact the McGonigle Law Team today if you have questions about a business contract or dispute. We have extensive experience managing these cases and providing contract reviews to protect you and your business adequately.

The information contained herein is for general purposes only and does not constitute legal advice.