I work for a mid-sized company (almost 500 employees) with a legal team of 3 and am curious about how our approach to contracts compares with others. Every single contract the company signs goes through legal review, and we always have revisions (we have specific terms we typically request). I’m talking every contract, down to the coffee vendor (not to minimize the significance of coffee). Is this normal? Sometimes it feels like a huge waste of time for low-risk concerns.

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It’s not normal.

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Not normal. We (+22,000 employees) have a whole contract department with non-lawyers. They work with simple non-complicated contracts and will usually get Legal involved if it isn't routine or if they have a question.

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A few years ago we made a decision to stop reviewing certain types of contracts, typically low-risk, low-spend, or where we have zero chance of negotiations (e.g. EULAs) You could have a policy in place where contracts below a certain threshold don’t have legal review. Be careful on this though, sometimes risky maintenance contracts could escape review, like window washing.

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I’m at a company of about 250 employees and we also review every agreement. The volume doesn’t sound as high as your, we have templates for most types of agreements that we try to use to manage this (and we try to push all of our vendors/consultants onto our consulting agreement to the extent possible). In my experience, even seemingly low risk agreements can have crazy shit in there, we once had a very small contract that happened to include a pledge of all of the company’s assets...

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A pledge? Wow thats absurd!

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Job security. If the legal approach is like this, then it would make sense to just develop your own forms/addendum, that would save time.

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Following!

I worked for a company that did this

From my perspective, there should be a threshold consideration for what merits full-blown Legal review and what merits simple managerial approval. Some companies have certain built-in thresholds (typically related to either insurance or indemnity) that determine whether a Legal review is triggered; others are done on a more ad-hoc basis. But two things seem clear: you should not be spending valuable lawyer-time on the coffee-vendor, and (as Associate Attorney 1 noted) you should be grateful for the job security! Good luck.

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