Contract Managers Must Create and Deploy Communication Strategies Related to Due Diligence

Jim Bergman

Effective contract management relies on clear, structured communication. When it comes to due diligence, contract managers must not only gather and analyze information but also ensure that stakeholders understand risks, compliance requirements, and contractual obligations. A well-developed communication strategy enhances transparency, mitigates risks, and strengthens business relationships.

The Role of Communication in Due Diligence

Due diligence involves assessing financial stability, legal compliance, reputational risks, and operational capabilities before finalizing contracts. While contract managers are responsible for conducting this analysis, their success depends on how effectively they communicate findings and recommendations. Failure to establish a communication framework can lead to misunderstandings, overlooked risks, and costly missteps.

Key Strategies for Effective Communication in Due Diligence

  1. Develop a Structured Communication Plan
    Contract managers should define how due diligence findings will be shared, who needs to be informed, and the preferred communication channels. Establishing a cadence for updates ensures stakeholders remain engaged and aligned.
  2. Use Clear and Concise Reporting Methods
    Summarizing due diligence insights in an accessible format—such as dashboards, executive summaries, or risk matrices—helps decision-makers quickly assess contract viability. Avoid technical jargon and focus on actionable insights.
  3. Facilitate Cross-Departmental Collaboration
    Due diligence is a multidisciplinary effort involving legal, finance, compliance, and procurement teams. Encouraging open dialogue through meetings, shared documents, and collaborative platforms ensures a well-rounded risk assessment.
  4. Implement Proactive Risk Communication
    Instead of reacting to contract-related risks, contract managers should proactively communicate potential issues before they escalate. Early warnings and mitigation strategies help stakeholders make informed decisions.
  5. Leverage Technology to Streamline Communication
    Digital contract management platforms, AI-driven analytics tools, and automated alerts improve the efficiency of due diligence communication. Real-time updates ensure that relevant parties receive timely information.
  6. Ensure Accountability and Documentation
    Clearly documenting discussions, risk assessments, and stakeholder feedback strengthens due diligence integrity. Maintaining a record of communications ensures compliance and provides a reference for future contract evaluations.

Conclusion

Contract managers play a pivotal role in driving due diligence effectiveness—but without a strong communication strategy, even the most thorough assessments may fail to influence decision-making. By deploying structured communication plans, facilitating collaboration, and leveraging technology, contract managers can enhance transparency, mitigate risks, and reinforce contract integrity. A well-executed communication strategy is not just a best practice; it is essential for ensuring contract success.

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Published by Jim Bergman

Jim Bergman is a commercial contract professional with global experience spanning the USA, Latin America, UK, Europe, China, South Korea, Japan, India, SE Asia, the Middle East, Africa and Australia. He has worked on a wide range of direct and indirect spend categories in numerous sectors, developing a deep knowledge of services, goods and technology procurement and sales. Across this wide array of commodity and services experience, Jim has found the keys to success in maximizing value for money through customer-supplier relationships founded on innovative category management and strategic sourcing practices, key performance metrics and measures, as well as Total Cost of Ownership principles and collaborative contracting tenets. He has shared his knowledge through advisory engagements, as well as in developing and delivering training programs both on-line and in classrooms, in both open-enrollment and internal environments. Jim has assisted his clients through all phases and steps of contracting, negotiation, strategic sourcing and bidding processes, demonstrating value generation in excess of $250 million. His audiences and clients have included over 7,000 attorneys and commercial professionals students from over 1,000 corporations and public-sector entities.

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