What are the most important practices for reviewing contracts?

1 Read the contract carefully

The first and most obvious practice for reviewing contracts is to read them carefully and thoroughly. You should not rely on summaries, templates, or assumptions, but instead examine every clause, term, and condition in detail. You should also check for consistency, accuracy, and clarity in the language, format, and structure of the contract. Reading the contract carefully can help you identify any gaps, ambiguities, or contradictions that might cause problems later on.

2 Compare the contract with the original offer

Another important practice for reviewing contracts is to compare them with the original offer or proposal that you or the other party made. This can help you verify that the contract reflects the agreed-upon terms and conditions, and that there are no changes or additions that might alter the scope, price, or quality of the deal. You should also look for any discrepancies or deviations from the industry standards, best practices, or legal requirements that might affect your rights, obligations, or liabilities.

3 Seek expert advice

Reviewing contracts can be a complex and challenging task, especially if you are not familiar with the legal, technical, or financial aspects of the contract. That is why it is advisable to seek expert advice from qualified professionals who can help you understand, interpret, and evaluate the contract. You can consult lawyers, accountants, engineers, or consultants who have experience and expertise in the relevant field or industry. Seeking expert advice can help you avoid mistakes, oversights, or misunderstandings that might compromise your interests or expose you to risks.

4 Negotiate the contract terms

Reviewing contracts is not only a passive process of checking and verifying, but also an active process of negotiating and modifying. You should not hesitate to raise any issues, concerns, or questions that you have about the contract, and to propose any changes, amendments, or clarifications that you think are necessary or beneficial. You should also be prepared to respond to any requests or suggestions that the other party might make, and to reach a mutual agreement that satisfies both sides. Negotiating the contract terms can help you improve the quality, value, and fairness of the contract.

5 Review the contract periodically

The final practice for reviewing contracts is to review them periodically throughout the contract lifecycle. You should not assume that the contract is fixed and final once it is signed, but rather monitor its performance and compliance regularly. You should also review the contract in response to any changes or events that might affect the contract, such as market fluctuations, regulatory updates, or performance issues. Reviewing the contract periodically can help you adapt to the changing circumstances, resolve any problems or disputes, and optimize the outcomes of the contract.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?