In many companies, contract review becomes a last-minute problem.
Sales and estimation teams work until the deadline. Suppliers and subcontractors are pushed for final prices. The proposal is almost ready and then management is asked to review everything.
The problem is not the review.
The problem is when, what, and how we review.
1. Bid Review Starts with Bid Qualification
Not every opportunity should follow the same review process.
A direct client bid may require closer attention to contractual conditions, financial terms, liabilities, penalties, warranties, bonds and other risks.
But a bid through an EPC contractor may follow a completely different sales cycle, with multiple revisions and negotiations.
It makes little sense to involve finance and senior management in every quotation revision.
What is needed is segmentation and guidelines:
- How do we qualify the opportunity?
- Which risks must be identified?
- What pricing strategy applies?
- What terms are acceptable?
- What assumptions are allowed?
- When should a risk be escalated?
- Who has the authority to approve?
Governance should create clarity, not stop momentum.
2. Authority Should Match the Risk
A strong Authority Matrix gives teams the freedom to manage normal business while ensuring the right level of management involvement.
For example:
- Small / Standard → Business Unit Approval
- Medium / Higher Risk → Management Review
- Major / Strategic / Mega → Top Management or Board Review
This is not about a lack of trust.
It is about clarity, communication and engagement.
When major projects are reviewed by senior leadership, stakeholders understand the opportunity, the risks and the commitments. This creates alignment and often secures the support needed later during execution.
At the same time, sales teams need enough authority to move quickly on smaller and medium opportunities.
3. Contract Review — After Award
Winning the project is not the end.
Compare:
- What we bid
- What we negotiated
- What we signed
Then review scope, milestones, variations, penalties, warranties, liabilities, bonds, and other obligations.
The key question:
Did the final contract change the risk or profitability of our original bid?
If yes, address it before signing, not after execution begins.
The Bigger Lesson
Contract governance is about reviewing the right opportunity, at the right level, at the right time.
And remember:
Some industries cannot be won without accepting reasonable assumptions and risks.
The objective is not to eliminate every risk.
It is to understand, price, mitigate and approve the right risks.
How Can ImproFact Help?
Stop building processes that slow your business down.
Instead, create frameworks that provide the right authority to move fast while maintaining the controls needed to protect your bottom line.
Improve your bid and contract governance with ImproFact, where improvement meets excellence