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Our client signed a contract with a key supplier that resulted in a significant price decrease. The cover sheet was dated January 1, 2021. Although the term “effective date” was not defined in the contract, the body of the contract contained language stating an effective date of November 1, 2020.

The supplier’s position was that the lower prices should go into effect the day our client signed the contract: March 1, 2021. Our client’s intent was for the decrease to take effect on the stated effective date of November 1, 2020. The price difference amounted to $500,000 for the four-month period in question.


Revenew’s Contract Compliance team identified this issue and assisted our client in achieving a $250,000 recovery settlement. Our Contract Language Risk assessment team also provided specific language to be added to our client’s master purchase agreements, defining the term “effective date” – maximizing savings on future contracts as well.