KPILegal, Risk & Compliance

Contract Renewal On-Time Rate

Percentage of contracts renewed before their expiry date

What is Contract Renewal On-Time Rate?

Contract renewal on-time rate is the percentage of contracts renewed before they expire. It shows how well an organisation manages its contracts, avoiding gaps in coverage.

Contracts that lapse can leave the organisation without protection or service, or on worse terms.

How this KPI is measured

Function
Legal, Risk & Compliance
Sub-function
Contracts Management
Industry
All Industries
Type
Lagging
Impact
Risk
Unit
%
Measurement frequency
Monthly / Quarterly
Formula
(Contracts renewed before expiry / Total contracts due for renewal) × 100

How to calculate it

Divide contracts renewed before expiry by total contracts due for renewal, and multiply by 100.

For example, if 180 of 200 contracts due were renewed before expiry, the rate is 90%.

Maintain a contract register with expiry dates, notice periods and owners, and start renewals early enough to negotiate.

Where it is used

  • Avoiding lapses

    Keep cover in place.

  • Improving negotiation

    Allow time to renegotiate.

  • Managing legal workload

    Plan ahead.

How to improve it

Tips and common mistakes

  • Watch automatic renewal clauses and notice periods.
  • Renew on good terms, not just on time.
  • Keep a central record.

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