Contract Management System Must Haves: The Contract Review Checklist

Whether you’re a contract manager with a robust contract management system, or an admin who wears many hats—thoroughly reviewing each contract before signing is likely a crucial part of your role. That means you’re also the one responsible if an important detail is missed! ?Yes—the potential for legal issues and financial risks to rear their ugly heads is real, but, a comprehensive checklist worked into your process can minimise the risk of their appearance. It's a small step with a big impact! If you're unsure where to start, we've put together a few essentials to help you out.

1.???? Scope of Work

?When you’re getting started on your review one of the first things you should do is ensure the contract clearly defines the scope of work, including deliverables, timelines, milestones and any specific requirements. Pay close attention to any language that may be open to interpretation or could lead to misunderstandings down the line.

2.???? Payment Terms

Verify that the payment terms are clearly outlined, including the total contract value, payment schedule, invoicing procedures and any penalties for late payments. Confirm that the terms are in line with your organisation's budget and cash flow projections.

3.???? Intellectual Property Rights

If the contract involves the creation or use of intellectual property, make sure that the ownership and usage rights are clearly defined. This may include patents, trademarks, copyrights, or trade secrets. Protect your organisation's interests by ensuring you have the necessary permissions to use any third-party intellectual property.

4.???? Termination Clauses

Carefully review the termination clauses to ensure that both parties have a clear understanding of the circumstances under which the contract can be terminated, as well as the consequences of early termination. This will help prevent any surprises or disputes should the contract need to be ended prematurely.

5.???? Liability and Indemnification

Verify that the contract includes appropriate liability and indemnification provisions to protect your organisation from potential legal claims or damages arising from the agreement. Ensure that the language is clear and that the allocation of risk is fair and reasonable for all parties involved.

6.???? Confidentiality and Non-Disclosure

If the contract involves the exchange of sensitive or proprietary information, confirm that there are robust confidentiality and non-disclosure provisions in place. This will help safeguard your organisation's valuable data and maintain your competitive advantage in the market.

7.???? Governing Law and Dispute Resolution

Finally, review the governing law and dispute resolution clauses to determine which jurisdiction's laws will apply to the contract and how any disputes will be resolved. Ensure these clauses align with your organisation's legal and risk management strategies and that you’re comfortable with the proposed dispute resolution process.

Don’t Forget to Automate Important Dates

Once you’ve reviewed your contract and it’s been signed, be sure to keep track of important dates related to each agreement. Setting up reminders in your contract management system for key milestones can help you stay on top of your responsibilities and avoid costly oversights.

Some important dates to consider include:

·?????? Contract renewal or expiration dates

·?????? Payment due dates

·?????? Delivery or milestone deadlines

·?????? Performance review dates

·?????? Opt-out or termination notice periods

Manually tracking these dates across multiple contracts can be time-consuming and prone to error. That's where contract management software comes in. By automating reminders and notifications for important dates, you can streamline your contract management process and ensure that nothing falls through the cracks.

The benefits of using contract management software extend beyond just automated reminders. These powerful tools can also help you:

·?????? Centralise contract storage and organisation

·?????? Facilitate collaboration and approval workflows

·?????? Generate reports and insights on contract performance

·?????? Ensure compliance with internal policies and external regulations

At WebCM, we understand the challenges that come with managing contracts effectively. That's why we've developed a comprehensive contract management solution designed to simplify and streamline the entire contract lifecycle.

To learn more about how WebCM can help you manage your contracts with ease, visit our website today. Get in touch with us to learn more about our unique pay-per-contract pricing structure and our free 90-day software trial.