Contract compliance issues are dreaded by legal and contract management professionals due to the immense legal risks associated with it. Businesses are expanding beyond physical boundaries, changing regulations, and growing environmental pressures. As a result, companies face fast-changing obligations, the strict federal government and international regulations, and growing environmental obligations.
Any negligence in complying with these obligations could result in huge financial losses as well as a stain on reputation. It can also lead to missed opportunities for revenue capture and cost savings.
Large companies deal with thousands of contracts every year. This exposes them to an increased risk of non-compliance with contract terms and conditions, obligations, or project operations and delivery.
Companies without a repository or a standardized contract management process often fail to track their existing contracts or monitor the ongoing ones. This can lead to missed deadlines, redundant obligations, or neglected clauses that can have serious repercussions and leave companies struggling.
For contracts to ensure full compliance and achieve their full potential, disparate, basic contract management system and storage systems cannot suffice. Companies need to have a reliable, integrated contract management software in place. It should have a solid and secure foundation and streamlined processes for ensuring compliance.
Here, we give you four pillars for contract compliance management. These will keep legal risks at bay and prepare organizations to accurately manage and successfully implement an effective contract compliance management.
The four pillars of contract compliance are:
- Centralized repository, templates, and clause libraries
- Well-defined contract performance benchmarks
- Standardized workflows
- Audit system for internal processes
Download this whitepaper to know how these four pillars form a solid foundation to achieve your contract compliance objectives. It will also discuss how Ultria’s Orbit Explorer and Protector help organizations stay on top of their contract compliance objectives. Their advanced capabilities offer good practices for contract compliance like — identify, map, and analyze clauses as well as provisions.