Contract Management

Does anyone verify if the signers for the contract are authorized to sign the contract (i.e. corporate resolution giving authority to sign)? If so, does the vendor management team (centralized program) verify or does the department head (decentralized team) verify who is authorized to sign the contract. 

Best option is that Legal require an authorized signer's representation/list etc. from the counterparty to the arrangement (i.e. the vendor). 

Next best options are vendor management (another group independent of the arrangement), other similar groups and lastly the vendor owner. 

It's not just best practice to ensure that the signer is authorized. Many a company has rued the day when their arrangement was voided because the other side's signer was authorized to make that deal.

Have a great day.

Does anyone verify if the signers for the contract are authorized to sign the contract (i.e. corporate resolution giving authority to sign)? If so, does the vendor management team (centralized program) verify or does the department head (decentralized team) verify who is authorized to sign the contract. 

Our VM team was running into that exact issue.  Our Senior Leadership Team drafted a new Delegation of Authority Policy that clearly states who can sign a contract & what their signing limit is.  We centralize the process & Vendor Management initiates the electronic signature for a majority of contracts (exception if the vendor must initiate). 

Best option is that Legal require an authorized signer's representation/list etc. from the counterparty to the arrangement (i.e. the vendor). 

Next best options are vendor management (another group independent of the arrangement), other similar groups and lastly the vendor owner. 

It's not just best practice to ensure that the signer is authorized. Many a company has rued the day when their arrangement was voided because the other side's signer was authorized to make that deal.

Have a great day.

Does anyone verify if the signers for the contract are authorized to sign the contract (i.e. corporate resolution giving authority to sign)? If so, does the vendor management team (centralized program) verify or does the department head (decentralized team) verify who is authorized to sign the contract. 

Our VM team was running into that exact issue.  Our Senior Leadership Team drafted a new Delegation of Authority Policy that clearly states who can sign a contract & what their signing limit is.  We centralize the process & Vendor Management initiates the electronic signature for a majority of contracts (exception if the vendor must initiate). 

Best option is that Legal require an authorized signer's representation/list etc. from the counterparty to the arrangement (i.e. the vendor). 

Next best options are vendor management (another group independent of the arrangement), other similar groups and lastly the vendor owner. 

It's not just best practice to ensure that the signer is authorized. Many a company has rued the day when their arrangement was voided because the other side's signer was authorized to make that deal.

Have a great day.

Does anyone verify if the signers for the contract are authorized to sign the contract (i.e. corporate resolution giving authority to sign)? If so, does the vendor management team (centralized program) verify or does the department head (decentralized team) verify who is authorized to sign the contract. 

We are currently drafting our Signature Authorization Policy as well as getting a system put in place for vendor and contract management. I second, if anyone has an examples on how they structured this that would be very helpful! 

Our VM team was running into that exact issue.  Our Senior Leadership Team drafted a new Delegation of Authority Policy that clearly states who can sign a contract & what their signing limit is.  We centralize the process & Vendor Management initiates the electronic signature for a majority of contracts (exception if the vendor must initiate). 

Best option is that Legal require an authorized signer's representation/list etc. from the counterparty to the arrangement (i.e. the vendor). 

Next best options are vendor management (another group independent of the arrangement), other similar groups and lastly the vendor owner. 

It's not just best practice to ensure that the signer is authorized. Many a company has rued the day when their arrangement was voided because the other side's signer was authorized to make that deal.

Have a great day.

Does anyone verify if the signers for the contract are authorized to sign the contract (i.e. corporate resolution giving authority to sign)? If so, does the vendor management team (centralized program) verify or does the department head (decentralized team) verify who is authorized to sign the contract. 

At my previous company, only select people had access to DocuSign which made it easier to have people come through vendor management for signature. 

To every contract, we attached an excel sheet which included the Business Owner and all required signing authorities as well as details of the contract (Term, Financial and what the contract was for). Signatories would sign both the excel sheet and the final signing authority would sign the contract. Note that it went in a specific order so business owner would sign before the contract signer or before the CEO of that was required.

We are currently drafting our Signature Authorization Policy as well as getting a system put in place for vendor and contract management. I second, if anyone has an examples on how they structured this that would be very helpful! 

Our VM team was running into that exact issue.  Our Senior Leadership Team drafted a new Delegation of Authority Policy that clearly states who can sign a contract & what their signing limit is.  We centralize the process & Vendor Management initiates the electronic signature for a majority of contracts (exception if the vendor must initiate). 

Best option is that Legal require an authorized signer's representation/list etc. from the counterparty to the arrangement (i.e. the vendor). 

Next best options are vendor management (another group independent of the arrangement), other similar groups and lastly the vendor owner. 

It's not just best practice to ensure that the signer is authorized. Many a company has rued the day when their arrangement was voided because the other side's signer was authorized to make that deal.

Have a great day.

Does anyone verify if the signers for the contract are authorized to sign the contract (i.e. corporate resolution giving authority to sign)? If so, does the vendor management team (centralized program) verify or does the department head (decentralized team) verify who is authorized to sign the contract. 

We are currently drafting our Signature Authorization Policy as well as getting a system put in place for vendor and contract management. I second, if anyone has an examples on how they structured this that would be very helpful! 

Our VM team was running into that exact issue.  Our Senior Leadership Team drafted a new Delegation of Authority Policy that clearly states who can sign a contract & what their signing limit is.  We centralize the process & Vendor Management initiates the electronic signature for a majority of contracts (exception if the vendor must initiate). 

Best option is that Legal require an authorized signer's representation/list etc. from the counterparty to the arrangement (i.e. the vendor). 

Next best options are vendor management (another group independent of the arrangement), other similar groups and lastly the vendor owner. 

It's not just best practice to ensure that the signer is authorized. Many a company has rued the day when their arrangement was voided because the other side's signer was authorized to make that deal.

Have a great day.

Does anyone verify if the signers for the contract are authorized to sign the contract (i.e. corporate resolution giving authority to sign)? If so, does the vendor management team (centralized program) verify or does the department head (decentralized team) verify who is authorized to sign the contract.