Contract Renewals
Contract renewal is the final phase of the contract lifecycle that occur when parties choose to continue with a business contract when the original term comes to an end at a previously set date.
Updated: November 25, 2023
Contract renewal is the final phase of the contract lifecycle that occur when parties choose to continue with a business contract when the original term comes to an end at a previously set date. The contract may automatically renew or it might need to be manually reevaluated and resubmitted based on guidelines laid out in the original agreement.
A customer gets an opportunity to reevaluate whether a service or subscription is working for them with the contract renewal phase. A company can also look to renegotiate terms to improve efficiency, costs, and overall satisfaction for both parties during this phase.
Contract management software can be used by organizations to automate processes and improve workflow at all stages of the contract lifecycle. Subscription billing software are also used by many software-as-a-service (SaaS) companies to automate the processes involved in managing contract renewals.
Automatic renewals and Manual renewals are two main categories of contract renewals with each type having its own advantages and disadvantages. Contract renewals are important as it better business relationships, saves time, reduces cost and help increase in revenue.
You need to consider contract review, contract organization, contract deadline management and find the right contract management software when managing contract renewals.