2
Contract due diligence Managing supplier contracts efficiently means not only storing them securely and making them accessible, but also reviewing them periodically to ensure that they still provide favourable terms and conditions to the organisation and comply with new regulations. We often undertake contract due diligence tasks for our clients and some of our findings include lost contracts, expired contracts, contracts with missing schedules, contracts that are unsigned or not dated, and contracts that are misplaced or taken out of the contract safe without being recorded in a check-out log. A quarter (25.5%) of organisations have not conducted due diligence of their supplier contracts in the past 2-3 years and hence may be prone to experiencing one or more of the problems outlined above.
Figure 25: HAVE YOU CONDUCTED A DUE DILIGENCE EXERCISE ON YOUR THIRD-PARTY CONTRACTS IN THE PAST 2-3 YEARS?
Don’t know No Yes
59.6%
25.5%
12.8%
0
10%
20%
30%
40%
50%
60%
37
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