Contract Management
How often should contracts be reviewed?
There's no single answer — but there is a sensible cadence based on risk, value and renewal timing. Here's how to decide.
The general rule
Every contract should be reviewed at least once a year, and always at least 30 days before its notice deadline. Calculate that deadline as renewal date minus notice period, or use the notice deadline calculator.
By value and risk
- High value or high risk (leases, insurance, core software): begin at least 60 days before the notice deadline.
- Medium value (professional services, subscriptions): begin at least 30 days before the notice deadline.
- Low value (utilities, small tools): annual sweep.
Trigger-based reviews
You should also review a contract when:
- Your usage has materially changed
- The supplier's performance has deteriorated
- A cheaper or better alternative appears
- Your business direction has shifted
The review itself
A review is not just re-reading the contract. Confirm use, performance, current pricing, alternatives, operational dependency, exit requirements and approvals. Use the Contract Review Checklist to cover commercial and risk questions.
Worked timing example
An agreement renews on 31 December and requires 90 days' notice. Its notice deadline is 2 October. A normal review begins by 2 September; a high-risk review begins by early August. Starting “60 days before renewal” would be too late because the business would already be locked in. See why businesses miss contract renewal dates for the process gaps behind that mistake.
Put the cadence into the register
Store renewal date and notice period separately, calculate the notice deadline, and assign an owner. Review a rolling 120-day view monthly. Record renew, renegotiate, replace or exit, together with the reason and next review date. If your register is a spreadsheet, this guide to setting up a contract tracking spreadsheet and knowing when to switch explains how to keep that review routine workable.