Robert A. Marsico
Partner
201-896-7165 rmarsico@sh-law.comFirm Insights
Is Poor Contract Management Hurting Your Bottom Line?
Author: Robert A. Marsico
Date: May 21, 2015
Key Contacts
Back
From client contracts to employment agreements to leases, even small businesses can have hundreds if not thousands of contracts. Thanks to technology, a lot of contract management is done digitally. However, many contracts are still prepared, signed, and filed using traditional paper format.
The sheer increase in contract volume, as well as the diverse types of electronic and paper agreements, have made contract management even more important. However, studies suggest that many businesses may not be dedicating sufficient resources to managing their key agreements. In fact, a 2014 Huron Legal survey of 100 legal technology professionals revealed that 57 percent of respondents were concerned about their company’s existing contract management procedures.
The survey also found that many businesses are not taking the proper steps to monitor and update their contract forms and templates. Of those polled, only 58 percent reported that they review their standard contract terms and conditions at least once a year. Another 17 percent said they reviewed agreement forms every two years, and 13 percent said such review was undertaken only whenever a new client is signed.
Even more concerning, the Journal of Contract Management found that 71 percent of companies couldn’t find at least 10 percent of their contracts. Misplaced and outdated contracts can lead to serious legal concerns. Lost or out of date agreements can cost businesses money, from failing to collect payments when due to missing important renewal deadlines.
Given that state and federal legal regulations can change and impact a company’s legal obligations, it is also important to review the terms of all standard contracts to ensure that they are still legally compliant. For instance, New York employers should review their employment contracts to address recent changes to the state’s human rights law. In New Jersey, recent environmental rulings may change indemnification obligations set forth in your contracts.
For specific contract management tips, check out our prior post, “Do Your Business Contracts Need a Spring Cleaning?”
- Practices: Corporate Transactions & Business
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Author: Bryce S. Robins
Understanding Chattel Paper: A Key Component in Secured Transactions
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.