The cost of poor contracting and negotiations
Contracts are business critical
The costs of a low risk contract from authoring to signature is $6900 and a high-risk contract is $49000 per contract!
Bad negotiations translates to revenue loss
9.2% of annual revenue is lost due to bad negotiations. This is upto 15% for larger businesses
71% of companies are unable to find 10% or more of their contracts. Lost contracts are costly because of revenue loss!
Why does this happen?
No legal background
Frontline sales teams end up with complex contracts to review with very litte legal background
Poorly drafted contracts
High risks to the business stemming from contracts affecting revenue recognition and risks of contractual disputes
Legal counsel is busy, unavailable or simply not hired yet. Negotiations are amateurish at best.