Contract Abstraction is the process of “abstracting” key dates, clauses, options, and other pertinent information from a contract into data for analysis and summarization.
This may be done in preparation of loading company wide contract data into an electronic contract repository. Or there may be a large project or even lawsuit that your company needs to have complete data on the legal relationships that you have with your suppliers.
Premikati can take either paper copies or electronic documents. Our clients often ask us to assist with the gathering of their contracts on-site as it can often be challenging to find all the places where contracts are stored.
Our deep experience in the procurement field uniquely positions Premikati to provide early advice and support in the contract cycle.
Our professionals will work in conjunction with your legal resources and procurement staff to understand your preferred terms and conditions. We will evaluate alternative positions and level of risk tolerance as well as other factors relevant to your specific contracts.
We will negotiate with your suppliers to draft the contract striving to construct terms as close to your preferred position as possible. We then generate a contract summary report highlighting any gaps. We continue the negotiation with your suppliers until completion, providing our expertise at all steps of the process.
During a merger or acquisition, one important value lever to capture is increased efficiencies due to procurement synergies. Estimating this potential requires an extensive analysis of each companies procurement contracts.
Beyond simply comparing rates for each commodity or service, due diligence will also require an analysis of various contractual terms to determine additional benefits or liabilities.
We will provide a matrix summary for each commodity/service analyzed and administer a go-forward strategy to optimize cost and risk levels. Additionally, we will flag for an end of contract (EOC) negotiation any weak contract that may not need addressed immediately.
Premikati can design and implement a contract management function specifically tailored for your business and unique company culture. Additionally, we can operate that function, either on an interim basis while helping to ramp up internal resources, or as a permanent service.