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 Misplaced and outdated contracts can lead to serious legal concerns. Lost or out of date agreements can cost businesses money, from failing to collect payments when due to missing important renewal deadlines.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
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
Author: Marc J. Comer
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Author: Jay McDaniel
Data Center, Dark Fiber, and Lit Services Agreements in New Jersey: Key Terms and Legal Pitfalls
For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Author: George McGowan
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Author: Donald M. Pepe
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
Author: Paul Grossman
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.