When you enter into a relationship with a supplier, the start date of your contract is not always easy to determine. But it is important to know this clearly. Because from when is your supplier allowed to charge you costs? From when can you expect invoices? The date of signing your contract is not always equal to the start date of your contract. It's important to know exactly when your contract expires, so you also need to know the exact start date. What can be stated in your contract in such cases?
Next Billing Cycle
It may be that the start date is determined at the start of the next billing cycle after signing the contract. But whose signature is decisive? That of the customer, or that of the supplier? Both don't always sign on the same date. Moreover, we also often see contracts where only one signature is mentioned. Be sure to watch out for this.
Start Upon Delivery
Sometimes the start date is determined on the date of delivery of a certain good. That can be fine. But who in your organization still knows that date so many years later? And what if something is delivered in parts? Is the start date then the delivery of the first part? Or the date when the delivery was complete?
Service Performance
The start date of a contract can also be on the date of performance of a service. But again: who still knows that date after so many years? And does the contract start at the beginning of the services? Or upon completion of a certain part of them? You need to know all of that clearly.
So you'd better make sure the start date is explicitly stated in your contract. Moreover, it's particularly difficult to determine the end date and the correct cancellation period of a contract if you don't know the correct start date. It's therefore advisable to manage your contracts in a contract management system, so you have a clear overview at any time. Don't feel like investing in it? No problem, there are professionals who can help you with this. Contact us if you want to know more about this.