- Every one of us will enter into one agreement or other like service, constructions, finance, real estate and several other agreements in our day to day life.
- Generally, the terms used in these contracts are drafted in such a manner that general public may not fully understand the terms, and we may not give more time on the T&C’s.
- When the problem/issue arises in our agreement, we go through the T&C’s and realise that it is very difficult to manage the situation.
- Research from the International Association for contracts and commercial management suggests that organizations lose 9.2% of revenue every year due to poor contracts management.
- It’s published in a newspaper that one electrical subcontractor has committed suicide has the company has not paid his outstanding amount of Rs. 3.5 lacs and after his death, the company has paid the outstanding amount of Rs. 3.5 lacs and another Rs. 3.5 lacs as compensation.
- Generally all the companies have minimum of 10% of their revenue as bad debt.
Appropriate contracts management enables you to know your terms and conditions and strict adhering to the same shall ensure that remedies are mentioned in your contract for the problems/issues that may arise while you are executing your contract. This helps you to maintain your profits and avoid losses in your contracts.