Why Centralising Your Contracts Makes You a Better Contract Manager 

Picture, if you will, the following tale of woe: you get an urgent call telling you that an essential contract is up for renewal today, and – shock horror - no one can find the paperwork. You dig through email inboxes, network drives, even filing cabinets, losing precious hours of your working life that you’ll never get back to find one vital scrap of info. 

Sound familiar? 

If you’re sick and tired of dealing with fragmented spreadsheets, overflowing email threads, or actual honest to goodness physical paper, we’ve got some good news for you: there's a better way! 

Why does efficient contract management matter? 

Contract management isn't just admin – it's the foundation for every important relationship your business has. Not everyone in every business gets that, which is why many Contract Managers are still forced to struggle on with archaic, horribly inefficient methods. 

The consequences can be rather painful. According to research by the International Association for Contract & Commercial Management (IACCM), ineffective contract management costs businesses up to 9% of their annual revenue. That's money slipping through the cracks due to missed deadlines, overlooked renewal opportunities, compliance issues, and poorly negotiated terms. 

Centralising your contract data into a single, secure, and easily accessible platform can completely change how your business operates. With a single source of truth, teams across your organisation gain real-time visibility into contract terms, deadlines, and financial obligations. 

Instead of constantly putting out fires, your people can focus on proactive management and strategic negotiations, and work on building stronger, more profitable relationships. 

Why is decentralised data a problem for Contract Managers? 

Let’s face it - contract management isn’t particularly glamorous. But when it goes wrong, everyone notices. Like a Finance Manager who just discovered they've overpaid a vendor because someone mismanaged the contract details. Or a Service Manager whose phone is blowing up because a vital SLA was missed. 
 
These situations don't just cause headaches. They damage your reputation and your profits. 

For many companies, contracts still reside everywhere and nowhere at once: hidden deep in email threads, buried within shared folders, scattered across endless Excel spreadsheets, or tucked away in filing cabinets quietly gathering dust. 
 
Such a fragmented approach creates more than just inconveniences. It poses real, tangible threats to your business: 

Missed deadlines and financial overruns 

Decentralised systems often result in poor oversight of contract timelines, leading to missed deadlines and cost overruns. An example you might remember is the UK's National Programme for IT (NPfIT), which was initially projected to cost £2.3 billion over three years.  
 
Initially intended to bring the NHS into the 21st century by digitising patient record management and service delivery, the programme faced serious issues due to fragmented management and a lack of centralised oversight. 
 
By March 2012, the programme had already incurred costs of £7.3 billion, with the Public Accounts Committee estimating total final costs at approximately £9.8 billion - though the eventual cost is estimated to have been even higher at nearly £20 billion.  
 
One MP at the time called it “one of the worst and most expensive contracting fiascos in the history of the public sector”, with the eventual cost overrun somewhere between 440% and 770%. Clearly then, ineffective or decentralised management of complex contracts can lead to massive financial overruns and serious operational difficulties. 

Supplier payment delays and business insolvencies 

Without centralised contract management, keeping an accurate track of payment obligations becomes... difficult. This lack of oversight frequently results in missed or delayed payments to suppliers, negatively impacting both your company’s relationships and financial stability. 
 
Late or incorrect payments do more than just frustrating your suppliers though. They damage trust, can interrupt critical supplies and services, and lead to disruptions in your own operations. Small businesses in the UK lose, on average, around £22,000 annually due to late payments. 
 
While larger companies are just risking their reputation and straining their supplier relationships, the harsh reality is that many small businesses can end up facing insolvency because of this. Recognising the seriousness of timely payments, the UK government has introduced measures to hold businesses accountable for prompt payment practices. 

That's why centralising your contracts and creating clear visibility into payment schedules is so important. It gives you better control over your cash flow, ensures timely and accurate payments, and safeguards your relationships with suppliers. It’ll make you more robust both operationally and financially by both reducing how often you get late payments and making you better able to deal with them when they inevitably still happen. 

Real-world consequences 

The Aberdeen Western Peripheral Route (AWPR) project offers a powerful lesson on what can happen when contract management isn't handled effectively. Initially budgeted at around £300-£400 million, this ambitious infrastructure project quickly spiralled to more than £1 billion, with its completion delayed by nearly two years. What began as an exciting development ended up mired in cost overruns, setbacks, and frustration. 

Several unexpected hurdles—including severe weather conditions and, most notably, the sudden collapse of the contractor Carillion—caused chaos behind the scenes. With Carillion's insolvency in January 2018, its partners, Balfour Beatty and Galliford Try, were left scrambling. Galliford Try alone faced an additional £143 million in unforeseen costs, revealing just how quickly poor oversight and fragmented contract management can ripple through an entire project. 

Stories like AWPR remind us why robust, centralised contract management isn't just beneficial—it's essential. When contracts are clearly organised, visible, and easily managed, your business can swiftly address problems, protect budgets, and keep projects on track. Centralising your contracts doesn't just save headaches—it safeguards your financial future and empowers your teams to deliver projects successfully. 

Why is centralised contract data is so important? 

Imagine having instant access to every contract detail exactly when you need it—no stress, no confusion, no delays. That’s what centralised data access brings to your business. By adopting a cloud-based contract management system, you’re not just tidying up your files; you’re fundamentally changing how your organisation manages one of its most important assets. 

Faster, easier access to information 

Wasting time looking for information is a common, and venerable issue. Studies show that people are spending nearly 20% of their working week looking for internal information or tracking down colleagues for help. That’s about one day a week wasted!  
 
By centralising your contracts in a searchable, easy-to-access platform like Joblogic, your team can reclaim valuable hours and focus on strategic work instead of endless searching. Or switch to a four-day work week while getting the same amount of work done. 

Automated alerts and no more missed deadlines 

Missed renewal dates can be expensive, stressful, and disruptive. With centralised contract management, you can automate alerts, ensuring important deadlines never sneak up on you again. 

Research from DocuSign shows that contract management systems can speed up contract approvals by up to 82%, significantly reducing the risk of delays and associated costs. In practice, this means you’ll have smoother negotiations, happier suppliers and clients, and fewer costly mistakes. 

Better contractual compliance 

Managing contract compliance manually can be incredibly challenging, especially when the information you need is scattered to the five winds. 

According to the Chartered Institute of Procurement & Supply (CIPS), well-managed, centralized contracts can significantly improve compliance. CIPS highlights that effective contract management ensures there’s clarity and accountability around contractual obligations, reducing the risk of non-compliance. 

Research from the Aberdeen Group also supports this. Best-in-Class organisations are nearly three times more likely to have transactions that are compliant with their contracts.  
 
It just goes to show that by having all your contracts stored centrally, you gain instant oversight and easier auditability. Ensuring compliance becomes less stressful and more straightforward. 

Improved financial control and cost savings 

Centralised contract data gives your finance team a clearer picture of your organisation's financial obligations, payment schedules, and contractual terms. This improved visibility helps prevent common financial pitfalls like duplicated payments, missed invoices, or unintended overpayments. 
 
According to a report by KPMG, inefficient contract management processes can lead to the loss of up to 40% of a contract's value. By centralising your contracts, you turn them into financial assets rather than liabilities. 

Stronger collaboration across teams 

Contracts rarely involve just one department. Finance, procurement, legal, and operations often need to collaborate closely. A centralised platform helps everyone work seamlessly together, eliminating the confusion of email trails and version-control nightmares. 

Practically speaking, a centralised system makes it easier to share information, gather approvals quickly, and ensure everyone’s aligned and informed - so you and your teams can make quicker, smarter decisions. 

Real-time insights for better decisions 

Finally, a contract management system like Joblogic gives you valuable oversight into vendor performance, contract profitability, and negotiation opportunities. Instead of contracts being static documents filed away and forgotten, they become dynamic business tools. 
 
Real-time dashboards can help you to pick out patterns and data that’ll help your business proactively renegotiate terms, spot cost-saving opportunities, and even identify potential risks before they become problems. 

In other words, centralised data gives you the power not just to react but to proactively shape your organisation’s future. 

Streamline, simplify, succeed 

Contracts are the backbone of every successful business, and managing them properly keeps your organisation remains compliant, profitable, and strategically agile. Centralising your contract management will save your business valuable time, improve its financial health, and strengthen your partnerships. 

At Joblogic, we've already seen how our centralised contract management software can transform how your business manages contracts - simplifying processes, minimising risks, and delivering measurable results. 
 
If you're ready to leave inefficiencies behind and gain full control over your contracts, it's time to see what Joblogic can do for you! Book your free demo today and start turning your contract management into a competitive advantage.