Poor contract management is one of the leading areas of loss for many businesses, often equating to as much as 9% of their total income. Because it is such an important facet of any business, mitigating the problems that come with mismanaged or neglected contracts is important. But what are the real impacts of poor contract management?
Have you ever had to review a contract only to find that it is due to expire or has already expired? Depending on the current status of the project, this could cause missed labor and delay the completion or a product or essential service. Even worse, if the contract isn’t renewed before it expires, you may be paying more than you would have if a discount were available for early signing.
How do you know if your contractor is upholding their end of a contract is you don’t really know what is included in the documents? As one of the most common impacts associated with poor contract management, underperformance on a project can cost your business greatly. As an additional problem, potential contractors you want to work with may not choose you simply because they feel you are awarding unfair contracts already.
Money being funneled to underperforming contractors is valuable capital that could be used in other areas. Not only are you losing money with these practices, you are also losing time that you will never get back. If necessary, the money saved can be used to hire someone to review contracts and mitigate the chances of poor contract management from occurring
How Can Excipio Help?
Excipio is vendor, product, and platform-neutral, which allows our clients to rest assured we offer a completely unbiased analysis of their environment. We take pride in being our client’s best ally and trusted advisor. Our primary goal is to provide the analysis and recommendations needed to best suit a client’s needs when creating or upgrading a data center as well as providing opportunities for preparedness and efficient data backup. For more than a decade, Excipio’s clients include a variety of Fortune 1,000 enterprises, government agencies, and vertical market industries.