How often should contracts be reviewed for compliance?

Regular review of contracts for compliance is essential to ensure that all parties are adhering to the terms and conditions outlined in the agreement. Conducting these reviews regularly, typically at least annually, allows for the identification of any potential issues or changes in circumstances that may affect the contract's execution. This proactive approach helps to mitigate risks, maintain compliance with legal and regulatory requirements, and foster good relationships between contracting parties.

In addition, contracts often have specific terms that may outline conditions under which certain reviews must occur. Regular reviews help ensure that all obligations are being met and that both parties are fulfilling their responsibilities as expected. By doing so, it becomes easier to address concerns before they escalate into disputes, thereby facilitating smoother contract administration and management.