When do you start the contract renewal process?

Normally the contract renewal process is not started until one month before your current contract end date. If clients anticipate a risk that a contractor might not renew resulting in a project schedule being affected they might try to get a contractor to consider an early contract renewal.

When do I need to renew my contractor licence?

Companies or partnerships that contract, sub-contract and/or advertise to carry out residential building or trade work, need to be licensed. You’ll receive a renewal notice for your company contractor licence six weeks before the expiry date. You can then pay for and renew your licence online.

What’s the difference between a contract renewal and an extension?

Contract Renewal Checklist A renewal of contract should not be automatic. It’s important to understand the difference between a contract renewal and an extension. Renewing means the recreation of a legal relationship or replacing an old contract with a new one, rather than just an extension of a previous contract or relationship.

Why is it good to negotiate contract renewal?

Having a contract renewed looks good on your CV. It shows you have staying power and that clients like you. If this is the first renewal at the client then it might be sensible to renew, unless you can get significantly more money elsewhere. Negotiating a contract renewal is pure sales.

What does it mean to renew a contract?

Renewing means the recreation of a legal relationship or replacing an old contract with a new one, rather than just an extension of a previous contract or relationship. When the time comes to process a contract renewal with a vendor or client, it’s recommended to do some research first.

How does contract management software help with contract renewal?

Contract management software has features that automatically alert contract managers to notify them if a contract is up for renewal. The manager will then have time to check and approve the contracts before the renewal date to ensure that the pro0fit margins are maintained and that there is no risk of late or incorrect billing.

Is it possible to forget a contract renewal date?

This is because it is often quite risky, costly and time-consuming and this often causes people to forget dates for contract renewal. Such a thing can never happen with contract management software because everything is done automatically and you will be alerted when there is the need to renew a contract.

What happens if contract renewal is not handled as required?

If the renewal processes in the company are not handled as required, there is always the potential for loss of profit and revenue for customers. Poor processes will also give your competitor an edge over your company which means that you will lose customers and consequently lose money.