Managing contract times in Verified CM is important to ensure correct contract management and avoid problems with overlooked renewals.
Time registration in Verified CM
- Under "Contract Times" and the field "Conditions", specify the type of contract time: fixed, until further notice, automatic extension, or other. (You’ll find more information regarding each contract type below.)
- Enter the start date and, if necessary, the end date and any notice period.
Note! For contracts with automatic renewal, Verified CM automatically creates a reminder to review the contract before the extension occurs.
Contract types in Verified CM
All contracts have different time frames. Below you will find a description of the different contract times.
Fixed Contract Time
Contracts with a specific period have both a start and end date.
There is often no notice period, but it sometimes happens that termination can occur within the fixed contract time. Fixed contract time is common for contracts with a fixed delivery and with a clear delivery date.
Contracts that run until further notice
Have only a start date and terminate at the end of the notice. The contract runs until further notice and terminates when one of the parties terminates the contract.
Automatic renewal
Contracts that are extended if they are not terminated contain start and end dates with notice period. A characteristic of these contracts is that if none of the parties terminates the contract, it is extended for an additional contract period. These contracts are often used for subscriptions or rental agreements.
Note that there are also contracts with the possibility of extension, but where the extension does not happen automatically. These contracts have start and end dates, but allow for extension
If one of the contract parties indicates within a certain period that they want to invoke an extension of the contract.
It is important to note that these contracts are treated as contracts with a fixed contract time; use a "Task" to keep track of possible extensions. Contracts such as IT support contracts often have terms where an extension can be invoked by the party receiving the support.
Lack of Contract Times (Other)
In this category of contracts, there is no specific contract time. The contract often concerns general corporate documents or a transaction at a certain time, but there is no specific contract time. However, there are still guarantees and legal conditions that apply to the contract, but there is no specified specific contract time. Examples of such contracts are purchase agreements for products without specific time frames.
Example: purchase of a TV or computer for the company.
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