Why Vendor Contracts Should Be Living Documents, Not Filing Cabinet Clutter

Too often, law firms treat vendor contracts as one-and-done transactions. The terms are negotiated, the ink dries, the document is filed away, and then forgotten until renewal.

But contracts aren’t just legal formalities. They’re operational tools that, when actively managed, drive performance, control costs, and enforce accountability. When ignored, they quietly lose relevance and value.

It’s time to shift the mindset. Contracts should be living documents.

What Happens After the Signature

A well-negotiated agreement feels like a win. But the real work starts after execution: vendors begin delivering (or not), invoices arrive, and service expectations get tested.

The firms that revisit their contracts throughout the term, not just at renewal, are better positioned to catch drift, measure compliance, and adapt terms as needs evolve.

The Risk of a “Set It and Forget It” Approach

When contracts sit dormant, here’s what typically happens:

• Scope expands without clarity

• Invoices slowly drift from agreed rates

• Performance standards go stale

• Escalation paths become outdated or ignored

By the time leadership notices, the firm has already absorbed the impact, through overcharges, inefficiencies, or missed opportunities to correct course.

Is Your Contract Still Working for You?

It’s not always obvious. But there are warning signs:

• Service complaints from attorneys or staff

• Recurring invoice disputes or “surprise” charges

• Vendors resisting requests for data or reporting

• Changes in firm structure that aren’t reflected in terms

If any of these ring true, it’s time for a deeper look.

Why Mid-Cycle Reviews Matter

Waiting until renewal is often too late to drive meaningful change. Mid-cycle contract reviews give your firm the chance to:

• Benchmark current pricing

• Clarify service expectations

• Address inefficiencies while there’s time to correct them

• Re-negotiate or extend terms when it serves your interest

This isn’t about micromanaging. It’s about using the contract as the performance tool it was meant to be.

Case in Point: Reclaiming Control Mid-Contract

A 300-attorney regional firm engaged Mattern to assess an active outsourcing contract they hadn’t reviewed since signing. Service issues had been mounting, but leadership lacked clear data. Mid-cycle, we audited contract adherence, benchmarked pricing, and surfaced gaps in reporting and escalation. Working within the existing term, we renegotiated SLAs, added quarterly performance reviews, and established real-time tracking for deliverables. The result: restored accountability, an 18% cost correction, and a vendor relationship realigned to the firm’s evolving needs, without waiting for renewal.

Building Vendor Accountability Into the Relationship

Contracts only drive value if they’re part of an ongoing conversation. That means:

• Clear, measurable SLAs

• Regular performance check-ins

• Defined escalation paths that actually work

• A culture where vendors know you’re paying attention

Passive contract management invites passive vendor performance.

Make Contract Oversight a Habit, Not a Project

This isn’t just about one agreement. It’s about creating an operational rhythm where contracts are reviewed, referenced, and enforced.

Start by:

• Assigning internal contract owners

• Building reviews into quarterly vendor check-ins

• Auditing invoices against contract terms regularly

• Tracking KPIs with transparency

The more proactive your process, the more leverage and results you gain.

The Mattern Perspective

Vendor contracts shouldn’t gather dust. When used properly, they’re one of your most effective levers for performance and cost control.

If it’s been a while since your firm revisited its vendor agreements, now is the time to take a closer look. Contact info@matternassoc.com to get started.