Berwin Leighton Paisner’s latest report identifies three of the very best ways to improve contracting practice in your organisation. The report is a collaboration between Berwin Leighton Paisner and Contract Business Intelligence Nordic AB to explore why contractual risk was recognised as a key concern in corporations. Based on recent research into contracting practice in large corporate organisations, we also identify the three major barriers that you will need to overcome.
Three main constrictions to good contracting practice
Respondents identified three significant constrictions for organisations who want to improve the way they manage ther contracts – and their contractual risk:
- The complexity of the contracting landscape. Our respondents identified four factors that add to the complexity of the contract landscape: stakeholders, variety of terms, multi-jurisdictional influence and macro-regulatory requirements.
- People find it difficult to focus on the right things in contract negotiations.There is a lack of consistency in application of core skills in the contracting process. And individuals tend to focus on specific terms or objectives, at the expense of the bigger commercial picture.
- Low investment in good contracting processes and systems. Historically organisations saw contractual risk as insignificant, so contracting staff recruitment has lagged behind activity.
Learn more about the constrictions encountered by Heads of Legal and senior contracting lawyers. Once you know what barriers there are to good contracting practice in your organisation, you can put in place policies, procedures and technology to work through them.
Contact us if you want to know more on how to improve your contracting practise!