Procurement contract analysis

We price every commitment inside your supply and procurement contracts: price adjustment, minimum volumes, take-or-pay terms, payment terms, rebates, service levels, liability caps and termination rights. Each is extracted, costed and set out for the board with its trigger and its date.

• A contract register: counterparty, value, term, notice dates and renewal mechanism for every material agreement.
• A clause-by-clause commercial summary of each contract analysed, with financial effect.
• An exposure schedule showing the minimum payments and commitments the group carries.
• A negotiation brief listing the terms worth reopening and what to offer in exchange.
• A renewal calendar that warns the finance team before each notice date.

• Your register shows the share of material contracts with current notice dates.
• Committed minimum spend sits beside forecast demand, so the board sees the gap.
• You see how many contracts were renewed on reviewed terms against those renewed by default.
• Payment terms in practice are set against payment terms in the contract.
• Concessions agreed from reopened terms are measured against the negotiation brief.

Contracts are signed on the strength of the headline price and read afterwards, if at all. A minimum-volume clause turns into a liability when sales dip, an automatic renewal locks in an old price, and the group finds out when the invoice arrives.

• No one can list the group's supply contracts, their end dates and their notice periods.
• A contract renewed itself last quarter at the old terms.
• Volume commitments were agreed in a good year and sales have since fallen.
• Suppliers are paid on terms that differ from the contract and nobody knows why.
• A dispute has arisen and the group cannot find the clause on liability.

Chief executives and finance heads who are about to sign a significant supply agreement, renew one that has run unexamined, or inherit contracts through an acquisition or a change of management.

Qasim Abbas is the author of Moneyball Finance, and he reads a clause for its cash effect before its wording. Your board receives the exposure in one schedule: what each commitment costs, when, and on what trigger.

The register sits in your document system and mirrors into the ledger's supplier records. See how fees work.

How does your review sit with our lawyer's?

We tell the board what each clause costs or protects, and your lawyer advises on what it means in law.

Can you review a contract we have already signed?

Yes. Signed contracts show what the group is exposed to and when it can reopen terms, and that is often when the review is most useful.

Will you negotiate with the supplier?

Yes. We prepare the negotiation brief with the terms worth reopening and what to offer in exchange, and we take the negotiation to the supplier alongside your team.

Send us the contract awaiting signature or the one that renews next quarter. In a private briefing we tell you what the financial reading covers and how quickly the board has it.