Having a well written contract with your vendor is a critical aspect in your vendor manager life cycle. The contract is important as it sets forth the terms and conditions of the relationship with the vendor. Vendor contracts are legal agreements that clearly set forth the provisions and conditions of the work or services that the vendor provides. Because the contract is the foundation for the relationship with the vendor, a complete contract review should be done before the agreement is signed.
Strunk has created a Contract Review feature in our Vendor Manager solution to help ensure your contract does not have any gaps and that each provision is understood with clear expectations. Contract Review will assist in clearly identifying what each party’s role is and who is responsible for each area. This will prevent any issue between the financial institution and the vendor. Regulations require that contracts contain key provisions such as confidentiality, service level agreements, and mutual rights and responsibilities. A thorough review of your vendor contract should be done both prior to signing a new contract and while reviewing existing contracts for renewals. Strunk’s Vendor Contract Review will help clients address significant risk controls and regulatory compliance within each of their vendors activities.