Many people overlook their contracts because they view them as routine paperwork or assume they’ll be automatically renewed without considering the long-term implications. This lack of attention can lead to missed deadlines, unanticipated costs, and legal risks, ultimately damaging business relationships and profitability.

Missing a contract expiry date can lead to a range of significant issues.

When a contract is not tracked and renewed or terminated on time, it can result in unintended renewals, where the terms may no longer align with current needs or market conditions, leading to unnecessary financial obligations. You can also miss the opportunity to negotiate better rates or different outcomes.

Additionally, failing to manage expiry dates can cause legal risks, as outdated agreements may not provide adequate protection or may inadvertently expose an organisation to penalties or disputes.

Without proper oversight, missing these key dates also disrupts the timely execution of obligations, affecting relationships with suppliers, clients, or partners, and ultimately impacting business operations and compliance.

Sending an unapproved contract can lead to legal and financial complications, as the terms may not align with company policies or legal requirements.

This oversight can result in binding agreements that expose the organisation to unnecessary risks, disputes, and potential penalties.

Contract negotiation often involves multiple departments (legal, finance, sales, etc.), and without a CLM system, collaboration can become fragmented, leading to misunderstandings, delays, and suboptimal contract terms.

Without a centralised system, contracts may be stored in different formats and locations and named inconsistently, making it time-consuming and inefficient to find relevant documents when needed.

Worse, is sending versions for review by email, or using free-online sharing applications increases risk, and reduces visibility.

Without automated workflows and version control, there is a higher chance of human error, outdated contract clauses, and failure to adhere to legal or regulatory requirements, exposing the business to potential legal risks.