Game, set and match: Managing contracts from start to finish

Once a contract has been signed by the parties involved, there will often be responsibilities/obligations that need to be reviewed periodically.

The parties will need to ensure that they oversee the agreement moving forward, that obligations and responsibilities are being effectively managed and that value is being delivered.

Managing a contract effectively is crucial in ensuring operational efficiency, mitigating risks and achieving strategic objectives. Whether dealing with procurement, partnerships or service delivery, managing contracts properly can have a significant impact on an organisation’s performance and reputation. Contract management encompasses the entire lifecycle of a contract – from negotiation and approval to compliance monitoring and renewal or termination.

Effective contract management reduces the risk of missed deadlines, regulatory non-compliance, financial losses, and damaged relationships.

Organisations with strong contract management practices benefit from:

1. Reduced legal and financial risk
2. Improved supplier and customer relationships
3. Better compliance with terms and regulations
4. Increased operational efficiency
5. Cost savings and revenue optimisation.

Key considerations for effective contract management

1. Clear objectives and scope
   • Define the purpose of the contract, key deliverables and measurable outcomes
   • Establish expectations and responsibilities of all parties involved.
2. Robust contract drafting and negotiation
   • Use clear, unambiguous language to prevent disputes
   • Ensure terms are fair, realistic and aligned with legal standards
   • Include key clauses such as termination, payment, dispute resolution, confidentiality and penalties. Make sure you understand the clauses and that they work for you
   • Ensure that you understand any notice requirements in termination and dispute resolution clauses i.e., notice may need to be served in a particular format and at a particular time, such as by email and 6 months prior to the termination date.
3. Storage of contracts
   • Once signed, store the contract in a centralised and secure place which is easily accessible. If you have a digital copy, ensure that your systems are backed up and the location is known to those in the organisation who will manage the contract.
4. 4. Monitoring and performance tracking
   • Track critical dates (renewals, expirations, milestones) – some contracts may have an auto-renew clause which you have to serve notice for to prevent an auto renewal
   • Regularly review your performance against obligations and KPIs – it could help prevent a contract dispute
   • Set yourself reminders to flag key dates and reporting where possible.
5. 5. Risk management and compliance
   • Identify potential risks e.g., regulatory, financial, reputational) during the negotiation stages
   • Implement controls to ensure adherence to legal and internal standards. If you are using subcontractors, make sure that you consider liabilities and insurance in agreements that you have with them.

For major events, such as Wimbledon, with large volumes of contracts in place with multiple suppliers, drafting clear and robust documents and monitoring them is a full-time job in itself. However, by tracking performance, deadlines and monitoring for potential risks, event organisers can stay ahead of the game and deliver high profile events successfully.