The Cost of Bad Contract Management
You will probably be surprised by just how much poor contracting practices can erode your company’s financial health. Here metrics from around the industry that identify three of the biggest risks of poor contract management, and what that means for your organization
The price of a contract
According to IACCM, the average cost of a low-risk contract from authoring to signature is $6,900 and that number has increased 38% over the past 6 years. The cost of a high risk contract comes in at a staggering $49,000 per contract.
Lost annual revenue
Poorly managed contracts are expensive, but they also erode annual income. An WCC study indicates that an average of 9.2% of annual revenue is lost due to contracting pitfalls, like slow negotiations and missed milestones. The percentage is even higher, up to 15%, for larger organizations.
A whopping 71% of companies are unable to find 10% or more of their contracts as reported by the Journal of Contract Management. Lost contracts can be very costly due to penalties, missed renewals, and other revenue-impacting governance.
Poorly managed contracts don’t just lead to inefficiency and risk. They are also costly in terms of time, revenue, and missed opportunities. Malbek Contrax™ helps to improve your contracting efficiency and save you time and money. All those benefits are combined with a consumer-style user experience requiring no technical expertise.