Contract Assurance

contract auditIt is sometimes good to bring in an expert and independent third party to look at your contract. The simple application of a fresh pair of eyes can identify things which may not be achieved in the normal run of business. Delivery manager are often too busy with operational or day to day matters and may not have the appropriate audit skill to uncover issues quickly and effectively.

Clients can sometimes try and pack far too many ideas and risk mitigation measures into high value, long-term contracts without giving thought to the ultimate benefit they provide. In my experience, contracts often have numerous unconnected and sometimes contradictory clauses or aspirations and place many obligations on suppliers without prioritising them. Some clauses don’t make sense. (This usually arises as a result of a number of inputs from different contributors which are not viewed or considered in terms of the contract in its totality. A case where the “whole” contract is “not greater than the sum of the parts”.

A contract audit can answer questions like:

  • Does the contract make sense?
  • Is it workable in practice?
  • Is there non-compliance?
  • What is the impact of non-compliance?
  • If there is non-compliance is it a big problem? (Some clauses will be more important than others and it may be appropriate to ignore them.)
  • What is the cost of enforcing compliance compared to the benefits arising?

An independent review of contractual arrangements can also identify commercial opportunities to reduce costs and help recover overcharges

Benefits of our service:

  • We will identify commercial opportunities to reduce costs
  • Our work will help recover overcharges
  • Provide you with assurance that the contract is being properly applied
  • We provide an independent, expert, fresh voice which can inform and improve your contract negotiations

Talk to us today regarding your contract audit.