Legislation and compliance

The 5 most common contract management mistakes (and how to avoid them)

Written by:
Marvin Ensing
Date:
4/12/2024
The 5 most common contract management mistakes (and how to avoid them)

You've found the perfect interim professional. It seems like everything is running smoothly ... Until contract management suddenly slows everything down. Recognizable? Then you're not the only one.

Contract management is often seen as a formality, but it is the basis for smooth cooperation. Yet this is where things often go wrong. Think of unclear agreements, forgotten documents, or compliance problems. And that can cost a lot of time, money and trust.

Here are the 5 most common mistakes in contract management - and how you can avoid them:

1. Unclear contracts

A good contract is like a blueprint: clear, complete, and free of jargon. Yet we often see contracts that use vague language or miss crucial agreements. This leads to misunderstandings and legal risks.

How do you prevent this?

  • Use a clear template that includes all key points, such as responsibilities and exit strategies.
  • Check that the practice matches what is in the contract so there are no surprises.
People& Tip: Use model contracts as a basis, but adapt them to your specific needs. That makes them understandable and usable.

2. Failure to comply with laws and regulations

The world of labor law is constantly changing, with laws such as the DBA and AVG. Not being on top of this can result in fines and reputational damage.

How do you stay compliant?

  • Follow the latest developments, such as through webinars or specialized HR newsletters.
  • Work with legal experts who will keep you informed of changes.
People& Tip: We make sure your contract management always meets the latest legislation, so you don't have to worry about compliance.

3. Insufficient documentation

Without good documentation, you quickly lose track. Think of missing signatures, missed agreements or discussions about choices made.

How do you avoid chaos?

  • Document every step of the process, from negotiations to evaluations.
  • Use contract management software to keep everything organized.
Practical Tip: Software such as DocuSign or Contractbook can help keep everything centrally managed and accessible.

4. No clear evaluation criteria

How do you know if an interim professional is performing well? Without clear goals, it remains guesswork. This can lead to frustration and uncertainty about the success of the collaboration.

How do you make appointments measurable?

  • Set SMART goals (Specific, Measurable, Acceptable, Realistic, Time-bound).
  • Schedule set times for evaluation and feedback.
People& Tip: We will work with you to establish KPIs appropriate to the assignment and ensure that the interim professional is accounted for accordingly.

5. No exit strategy

Ending a contract can be uncomfortable, especially without clear agreements. It can lead to unnecessary costs or conflicts.

How do you arrange a smooth closure?

  • Lay out in the contract the steps in the event of termination, such as notice periods and handover.
  • Communicate openly and timely about the end of the collaboration.
People& Tip: We ensure that every collaboration has a clear plan, from start to finish. This prevents hassles and leaves all parties satisfied.

Conclusion: Make contract management simple and flexible

Contract management may seem like a formality, but it can make the difference between a successful collaboration and a lot of frustration. Clear agreements, compliance, and good documentation are key.

At People&, we know how important contract management is to a smooth process. Whether you are looking for an interim professional or want to improve your contract management, we are here to support you.

Ready to take contract management to the next level? Contact us and find out how we can help you!

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Marvin Ensing

Marvin Ensing

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