How to Review a Contract When You Are Paying

When your company is paying under a contract, you're in the buyer's position. Here's what to watch for.

Payment Terms

• When does the obligation to pay arise? Upon signing? Upon completion? In installments?
• Is there an advance payment? What percentage?
• Are payments tied to specific deliverables (milestones)?

Scope of Work

• Is the scope of work described concretely enough?
• Can you unambiguously determine what constitutes completed work?
• Are there acceptance criteria?

Termination

• Can you terminate the contract early?
• What are the conditions? 30 days notice? Penalty?
• What happens to prepayments upon termination?

Liability

• Is the contractor's liability capped? At what amount?
• Does the cap cover typical risks?
• Are there carve-outs from the liability limitation?

Hidden Fees

• Are there additional charges beyond the main price?
• Who pays taxes and fees?
• Is price indexation provided for?

SmartSplitAI Contract Review checks these items automatically, from your payer perspective.