Why You Need To Give Your Commercial Agreements A Spring Clean

As your business grows, pricing structures will change. This means that your suppliers will grow and evolve too. Their services may expand, and their licensing models may change. However, here at Burgh Thorpe Solicitors, our commercial agreement lawyers often see that commercial contracts often stay frozen in time. This can result in a huge loss of revenue, hidden in plain sight.

This is why our commercial agreement solicitors in Peterborough recommend that you give your commercial contract a spring clean, at least once a year. Who knows how much revenue you could be losing from commercial contracts and agreements that are stuck in the past?

For example, many supplier contracts will include annual uplift provisions. These will be linked to CPI, RPI or fixed percentage increases. If you don’t keep an eye on your commercial agreements, you may miss the window to shop around or query these increases. You may find that the suppliers are increasing the prices inconsistently too. Over time, this can result in a significant loss in revenue.

Are you a software or service business? You may find that you need to check your contracts for different reasons. Have you been undercharging clients for additional users for example? Could there be extra or added modules that you have failed to invoice for? Has there been any expanded usage allowed, but there has been no contract variation for this?

If your customers have been using your services more, but your pricing has remained the same, you need to get our commercial contract solicitors to review, and spring clean your commercial agreements for you. They will make sure your commercial contracts are working hard enough for you and your business.

There will be time in business when your customers and clients push their luck. This could be a “could you just add this” or “would you mind making this small change”. These may be small requests, but without disciplined change control, these requests could be quickly and quietly destroying your profit margin.

Our commercial agreement law specialists can help you spring clean your commercial contracts. They will complete an audit renewal and uplift dates. They can also review your pricing clauses to ensure the utmost clarity. As your commercial contract lawyers, we will check your licensing tracking aligns with your terms in contracts. Change control processes will be reinforced too.

Need to give your commercial agreements a spring clean? Call our commercial contract law specialists in Peterborough now.