Contract management is the systematic management of contracts throughout their entire lifecycle: drafting, negotiating, signing, executing, monitoring, renewing, and terminating. In our practice, we see that many internationally operating companies manage dozens or hundreds of contracts without structure. As a result, they run risks, miss renewal opportunities, and liabilities remain invisible. Good contract management is not an administrative detail but a strategic instrument.
What is the legal problem?
Working internationally with hundreds of contracts in different languages, currencies, and jurisdictions requires control over content, duration, and risks. Without central registration, those responsible miss critical deadlines. Renewals that take effect automatically bind you to unfavorable terms. Liability risks accumulate. Without reporting, legal costs and risks remain invisible to management and shareholders.
What does the law say?
No specific law mandates contract management, but various frameworks make it indispensable. The GDPR (Regulation 2016/679) requires an overview of processing operations and transfers under Article 30. NIS2 (Directive 2022/2555), CSDDD (Directive 2024/1760), and CSRD (Directive 2022/2464) mandate chain management and reporting. For listed companies, internal control requirements apply under the Corporate Governance Code and the Financial Supervision Act (Wft).
ISO 9001 and ISO 27001 contain requirements for document control and supplier management. For sectors such as finance, additional Wft supervision applies; for healthcare, the Wkkgz.
What risks do companies face?
Missed notice periods lead to unwanted renewals. Invisible liability only surfaces during claims. Non-compliance with compliance obligations leads to fines (up to 4 percent of turnover under the GDPR, 5 percent under CSDDD). Without governance, conflicting contractual logic arises between entities. A merger or acquisition often exposes a lack of contract management, which depresses the transaction price or requires indemnifications.
Practical example from our practice
We assisted a Dutch multinational with an internal contract audit. Result: 12 percent of distribution contracts lacked a choice of law clause, 7 percent were automatically renewed under unfavorable conditions, and 23 Data Protection Authorizations (DPAs) were missing under Article 28 of the GDPR. The restructuring took nine months and approximately 380,000 euros in legal costs. With the implementation of a CLM system featuring automated alerts for notice periods and periodic audits, the following contracts were centrally managed. Estimated savings: 250,000 euros per year.
What can you do?
Implement a central contract database with metadata (duration, notice period, choice of law, ceiling). Work with standard templates per contract type. Appoint a contract owner per agreement. Schedule periodic audits and compliance reviews. Integrate legal, finance, sales, and procurement. Use Contract Lifecycle Management software for larger portfolios. See also our article on The contract checklist for international business.