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Contract Clauses

The Contracts Module of Hiperos 3PM™ allows for the creation of a clause library, enabling the selection and inclusion of appropriate clauses into a third party contract as it is negotiated or based on issues/changes that arise during the contract lifecycle.

Contracts with third parties often are initiated by an employee or relationship manager, but negotiated and executed by a legal team or sourcing organization who may not be involved in the day-to-day management of the third party relationship.  Frequently, the terms negotiated into the agreement may not address all of the risk or compliance concerns that arise from due diligence by the business unit.  Also, there may be no central repository- contracts may be stored in multiple systems and formats so that they cannot be readily reviewed and managed during their term.  

In most instances, if circumstances with the third party change during the life of the contract – new ownership, compliance regulations, SLA terms, and violations brought to light –there is no automated way to align these with the contract and to create a list of clauses that should be added to the current agreement or negotiated into future extensions. The impact of this can lead to missed opportunities for risk mitigation or training to bring a third party into compliance and ultimately could have damaging effects on the company.

The benefits of accessing contract clauses through Hiperos 3PM™ include:

  • Negotiating clauses into the contract based on the due diligence done pre-contract
    • Eliminating the risk of mistakenly omitting contractual provisions.
  • Increasing efficiency by generating reports about due diligence and contract provisions
    • Automatically detects which contract provisions are needed based on pre-contract risk assessment
      • Searches existing contracts and extracts which clauses have been included
    • Packages the contract needs for the legal team and routes the information for review via automated workflow
    • Shares due diligence assessments and achieved contract clauses with risk assessment team members prior to contract/agreement signature
  • Adhering to Regulatory Guidance by ensuring you adhere to best practices from pre-contract risk assessment to contract signature and from ongoing relationship management to relationship termination.