'We have a mix of customers, some on contract and some without contracts. I analyzed customer satisfaction results - and found those with contracts are almost twice as happy as those without. The contracting process results in clear expectations and more disciplined performance.'
How much would your business be worth if it had no contracts? How confident would you be about your trading partners meeting their commitments if they were not documented? The purposes of a contract are largely to secure economic value and to operate as an instrument of business management and control. Research data shows that in many cases, the contracts we produce and the way they are managed are not 'fit for purpose'. The result is substantial value erosion.
The Consumer Financial Protection Bureau released a study last week regarding the financial industry's use of pre-dispute arbitration agreements. While the CFPB has yet to comment on how it will proceed in response to the study, given the most recent study's markedly negative evaluation of arbitration agreements, it appears likely that new limitations on pre-dispute arbitration clauses in financial service and product agreements are forthcoming.
51% of contract managers say that payment terms have become a more contentious issue in their negotiations, with many smaller companies under pressure to accept longer payment periods. Overall, 70% of companies say that they have adjusted their standard payment terms during the last 2 years.
IACCM and other standards developing organizations participated in a Capital Hill event and opened opportunities for policy discussions and collaboration. The event had nearly 150 attendees including congressional staff members, representatives, and other stakeholders and featured four panels highlighting leading issues affecting the global supply chain.
Article 2 of the Uniform Commercial Code (UCC) states the written terms of a contract can override the opposing party's differing understanding under the right circumstances.
Last week, one of my blogs included observations on the way that attitudes to contracts are changing. In response, drafting guru Ken Adams challenged my suggestion that these shifting attitudes will lead to fundamental changes in contract design. I think his implication is that change, to the extent it happens, will not significantly impact contract structure, but will simply move from undisciplined pedantry to an alternative and more rigid style of authoring, based on his style guides.
Social media has changed the game in how professional opportunities are publicized and filled. Join this webinar and learn to master the methods for identifying potential opportunities and getting noticed. Our guest expert will share insights on: New ways to showcase yourself through visual content: - 5 steps to a better personal brand - Get noticed on Social Networking sites - Looking beyond the major jobs boards
Of course you care about the bottom line. But do you have any sense of how much money you are losing each day through under-performing contracts? Your contracts are core business assets, but unless you tackle the common sources of erosion, they are leaking value every day. On average, companies could be generating over 9% improvement to their bottom line if they tackled the issues that commonly undermine contract performance. Contracting is of course just one element of commercial excellence - but quite a significant element when it comes to financial results. In this webinar we will look at the ten pitfalls in the contracting process which are most likely to be costing your organisation money and damaging the quality of your supplier relationships.
IACCM provides executives and practitioners with advisory, research and benchmarking services, contract management certification and training for contracts, commercial and relationship management professionals. IACCM is a non-profit membership organization that supports innovation and collaboration in meeting the demands of today's global trading relationships and practices.