Tag Archives: Contract Reviewing and Management Services

LPO role in contract management

What Role Does LPO Companies Plays in Contract Management?

Contract management services are of great importance, especially for small businesses. It involves various processes like assisting with drafting standard contracts, creating and managing databases and repositories, contract reviewing as per standard position and map deviations, analyzing contracts for specific compliance or other requirements, redlining and negotiating agreements as per standard position, capturing, abstraction and summarization of key information etc. The contracts are used by small business owners to give their relationships with external parties a formal look. A poorly defined contract could easily lead to a dispute between parties and could result in filing of court petitions. In order to avoid any challenges in the future, the right strategy needs to be followed.

The legal process outsourcing companies can help in the contract management process in the following manner:

Properly recognise the nature and scope of the relationship- Many in-house staff members find it difficult to understand the limits of the contract management process. For example, if a financial services company has been offering accounting services to a wholesale store for a couple of years and now the wholesale owners are also asking for other services like tax filing etc., then it is important for both the parties to enter in to a proper contract in which the duties which one party needs to perform for the other are clearly specified. The differences between the previous arrangements between the two sides and the new engagements should be clearly defined. A LPO company can play an important role in this regard.

Cost Effectiveness- By hiring the services of outsourcing legal firms for contract management, a small company can reduce its overhead costs. The outsourcing firms based in nations like India, China and Argentina etc. charge a much lesser remuneration than the local rates in developed nations like US, UK etc. So for small scale business firms looking for cost cutting measures, this is an ideal option. You will get high quality work but at considerably lesser price.

Ideal in Cases of Urgent Requirement- The LPO firms based in offshore nations like India, China, Philippines etc., can prove to be extremely beneficial in cases of urgent requirement. There is a 10-12 hour difference in the time zones of nations like US, China etc., and nations like India and China which offers the unique benefit of assigning the contract management tasks in the evening and getting the desired results by the morning.

Ensuring the Right Agreement of Both Parties- Generally parties enter in to disagreement with each other due to misunderstandings. The LPO firms can help in preparing contracts based on mutual understanding between both the parties and ensuring that there are no future disputes between the parties. All the crucial points will be discussed before commencing the contract preparation process.

Helpful in Dissolving Disputes at the Later Stage- There is always a chance of disputes arising later on between the two parties despite immense care being taken while preparing the contract. The LPO firms offer contract reviewing as per standard position and map deviations services to the parties which can help in ensuring cordial relationships between the parties.

Going through the above mentioned information can enable small business organizations to understand the importance of LPO services for contract management.

LSW is one of the leading providers of outsourcing legal support services to law firms looking for lesser operational expenditure and revenue optimization solutions. In the last eight years, they have earned the goodwill of their clients by adhering to deadlines and the desired quality standards. They have access to proficient staff and the latest software for fulfilling the needs of clients.

To get more information, contact us at info@legalsupportworld.com

Or call us at +16466882821.

contract drafting

Guidelines for Contract Drafting Agreements for Independent Contractors

Independent contractor agreements are agreements drafted by companies while hiring contractors for a short period and they are different from your regular permanent employees. It is important to have a well written contract with an independent contractor because of the many differences that exist between a trusted employee and an independent contractor about whom you don’t know much.

Given below are some points to consider and things to keep in mind while drafting and hiring an independent contractor:

Training: Training workers by making them work with one of your employees and attend meetings will help the worker understand the work and the process he is required to undertake. Though in general an independent contractor does not need training, but it will help him get acquainted with the work you want him to commit himself to.

Right to delegate and hire: Make sure that your contractual agreement states that the independent contractor must hire assistance, supervise them and pay for them himself.

Equipment and Tools: Be specific of the equipment’s and tools you want the independent contractor to use as an independent contractor generally provides his own supplies and equipment’s. The independent contractor is independent because he covers most of the personal costs, consider the expected contract price that the contractor will require to cover his cost and pay him a little extra on the condition that he manages within it.

Reports and status of work performed: Try not to enforce periodic written or oral reports and don’t negate them either. Frequently, written and oral reports are not mentioned in the contracts and the employer is then accused of demanding reports, which indicate his need for dominance.

Duration and hours: Having short period contracts are better than longer ones. Applying schedule for workers and their work will help the individual contractor’s efficiency with the right amount of rest and food.

Names and titles: Avoid using nomenclature that is generally used for an employee, this can be done by clearly stating that the person is working as an independent contractor and not an employee.

Exclusivity: Make sure that you state in the contract if the worker is required to do full time or part time work, as typically independent contractors can have multiple commitments that they have to fulfill and complete transparency from your side is required about work details and your requirements.

Payment and expenses: Pay the contractor not of a periodic basis but as and when he completes the project required out of him. Avoid reimbursements systems as it indicates and employee and employer relationship.

Profit or loss and the public: During the drafting, avoid monetary safety nets that prevent workers from experiencing losses.

TerminationGenerally, an independent contractor cannot be terminated unless the contractual specifications are met with. Consider drafting that the termination will occur when the project is completed in a set period of a given time and then then the payment will be made along with termination of contract.

It is important for you to judge which aspects are important while contract drafting with a specific contractor. The more detailed you are in your contract the more the chance of long-term success is guaranteed. Business today needs to pay more attention to contracts while hiring independent contractors and finally need to make sure that they hire under legal boundaries and the tax issues are not bound by the contract between both the parties.