What is Contract Compliance?

Contract compliance refers to observance of the norms and procedures outlined in a contract. Often, this involves periodic reviews of an existing contract to determine adherence to compliance mandates and protocols and check for deviations.

An essential part of a company’s risk management strategy, contract compliance helps ensure that all stakeholders — suppliers, buyers and employees — stick to the terms and conditions of a contract. This protects a business from fraud, corruption and rogue spending.

Compliance is an ongoing exercise that involves planning, implementation, measurement and continuous improvement.

Businesses can boost contract compliance by using robust contract management software to automate and simplify some of the more mundane aspects of this requirement. Contract compliance can provide valuable insights into procurement processes and can lead to savings. Learn more about GEP’s contract compliance software.

 


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