A new global report, “Smarter Contracts, Better Margins,” has uncovered a critical financial disconnect in the way contracts are managed. It offers a clear, actionable roadmap for businesses to recover millions and turn their contracts into strategic financial assets.
The research, a collaboration between the Commerce and Contract Management Institute, World Commerce & Contracting (WorldCC), and Icertis, surveyed nearly 200 businesses across industries. The findings are stark: while contracts underpin every revenue stream and cost commitment, they are too often treated solely as risk documents rather than as strategic financial assets. This narrow approach costs companies millions, while those that embrace contracts as sources of financial intelligence are already outperforming their peers by an average of 5.4% of contract value.
Seventy percent of survey respondents acknowledged this disconnect between contracts and financial oversight, leaving millions in value on the table for companies with multi-million-dollar portfolios. The report’s primary call to action is for leaders to reframe contracts as financial instruments that drive commercial advantage, not simply mitigate risk. It provides a clear blueprint for how to do so, demonstrating that this is not a marginal issue but a profitability imperative.
“For too long, contracts have been viewed primarily as legal safeguards rather than as drivers of financial performance,” said Tim Cummins, President of WorldCC and Executive Director of the Commerce and Contract Management Institute. “This research is a wake-up call: contracts are financial instruments. By aligning legal, commercial, and finance functions, organizations can unlock hidden value and materially improve business outcomes.”
The report argues that the disconnect stems from outdated practices. Traditional contracts, designed for a more predictable business environment, no longer match the needs of today’s volatile markets. In contrast, adaptive contracts—those with indexed pricing, performance-based triggers, and cross-functional governance—enable organizations to respond more quickly to disruption and protect margins.
Technology is another critical driver of change. The research highlights how modern Contract Lifecycle Management (CLM) systems, when integrated with Enterprise Resource Planning (ERP) and Financial Planning & Analysis (FP&A) platforms, deliver near-real-time visibility into contract performance and exposure. By embedding financial intelligence throughout the contract lifecycle, organizations can turn contracts into living sources of commercial insight, directly traceable to financial results.
“Our research shows that organizations that embed financial acumen into the contracting process are better positioned to respond to complexity, protect margins, and accelerate
growth,” said Sally Guyer, WorldCC CEO. “The solutions are here, and this report provides the blueprint to act.”
“This report makes it clear that the old ways of managing contracts no longer suffice. Organizations must close the gap between legal protections and financial performance if they want to remain competitive in today’s volatile economy," said Bernadette Bulacan, Chief Evangelist, Icertis. "Emerging technologies, especially AI, offer a path forward - turning contracts exclusively from static risk-management documents into strategic financial assets that help leaders optimize capital allocation, protect margins, and accelerate revenue."
The study concludes with a call for leaders to act decisively. Those that move to predictive, intelligence-driven contracting models will not only close the gap between promise and performance but also turn contracts into engines of profitability and resilience.
About World Commerce & Contracting
World Commerce & Contracting is a not-for-profit association dedicated to helping its global members achieve high performing and trusted trading relationships. With 75,000 members from over 20,000 companies across 180 countries worldwide, the association welcomes
everyone with an interest in better contracting: business leaders, practitioners, experts and newcomers. It is independent, provocative and disciplined, existing for its members, the contracting community and society at large. www.worldcc.com
About Icertis
Icertis delivers AI-powered insights and agentic automation to transform static contracts into a strategic enterprise advantage. The Icertis Contract Intelligence platform revolutionizes how enterprises manage their customer, supplier, and partner relationships, enabling businesses to grow revenue, control costs, mitigate risk, and ensure compliance. Today, more than one-third of the Fortune 100 trust Icertis to realize the full potential of millions of business relationships in over 90 countries. www.icertis.com
About the Commerce and Contract Management Institute
The Commerce and Contract Management Institute seeks to improve the world through higher standards in buying and selling. Our rigorous, practical research and insights, both relevant and useful, shape global policy and practice. We help society by driving up standards for the exchange of goods and services, resulting in better trading outcomes in both the private and public sectors. As a not-for-profit organization, we were founded, and
are supported, by World Commerce & Contracting and National Contract Management Association. www.ccm.institute