At Venminder, we have a team of industry experts such as paralegals who specialize in reviewing vendor contracts every day.
So, you’ve received a vendor contract. What next?
Here are the 5 next steps we advise:
- First, plan internally. Decide who should be involved in the review of the contract, who is authorized to change the agreement and what department will lead the contract negotiations and review.
- Second, negotiate. Many vendors work with standard contracts; however, they do have to be changed as negotiations progress. As a tip, often the function of contract negotiation is the responsibility of the legal department, or a shared responsibility between the legal department and the line of business.
- Third, approve and execute. Choose who within the organization is authorized to approve and execute the agreement. Make sure they understand the agreement terms as well as the associated risks.
- Fourth, consider storage. Ensure your contracts are housed in a centralized location that can be easily accessed by multiple areas within your organization, as needed. This helps ensure important dates don’t lapse, such as a contract non-renewal notice periods.
- Finally, manage contracts. Review product and service delivery and assess the relationship on an ongoing basis. Make sure to take notes around any vendor changes, issues, risks and performance levels overtime.
There you have it. Five very important next steps after you receive a vendor contract. Plan internally, negotiate, approve and execute, consider storage and manage contracts. We hope you found this podcast helpful for improving your vendor contract management process.
Thanks for tuning in; catch you next time!