Your company may need to terminate a contract for any number\nof reasons. Is it possible to maintain a business relationship with another\norganization after ending a contract?\n\n\n\nYes!\n\n\n\nIt\u2019s a small world, and you never know when you will need to\nwork with a vendor again, or you never know where the individuals you work with\nat one vendor will turn up later on. \n\n\n\nIf you handle the contract termination professionally, you\ncan preserve the underlying business relationship. However, you need to\nremember you can only control your actions. You cannot control the reactions of\nthe other party. \n\n\n\nTone Matters\n\n\n\nThe words you use and the way you couch those words will set\nthe tone for the relationship going forward. Being professional doesn\u2019t mean\nbeing cold or brusque. You should still be\npolite in all of your communications. \n\n\n\nDon\u2019t cancel a contract out of anger, even if the other\nparty has failed to uphold their part of the deal. \n\n\n\nState the Facts\n\n\n\nOne mistake some contract managers make in trying to salvage\na business relationship is to be too nice. Instead of giving the real reason\nfor the termination, they tell the vendor that they did a great job, but the company\nneeds to move in another direction.\n\n\n\nIf there has been a breach of contract, claiming the vendor\ndid a good job could hurt your company if there is any litigation.\n\n\n\nYou should stick to the facts. But, you should try and state\nthe facts without getting personal or accusatory. You shouldn\u2019t make legal conclusions\nin your communications. \n\n\n\nInstead of stating that the vendor breached the contract,\nyou should simply state that you are terminating the contract because the\nvendor\u2019s failure to make the last delivery caused the company to look elsewhere\nto fulfill its needs.\n\n\n\nExplain the Numbers\n\n\n\nNumbers have a powerful psychological effect. Numbers are\nseen as neutral. People are also more likely to agree with a statement backed\nup with numbers. Explain the numbers behind the contract termination.\n\n\n\nMake sure you are being honest, and not fudging the numbers to make the termination easier to take. You need to remember anything you communicate to the other party could be used in court. \n\n\n\nGet online in minutes, implement in hours, realize ROI in weeks! Easy-to-use, helps you increase productivity, contracts & revenue. Available anywhere, anytime & on any device.Try a Free Demo today!\n\n\n\nComplete Your\nObligations\n\n\n\nIf you want to salvage a business relationship, make sure to\ntie up loose ends quickly. Complete all of your outstanding obligations,\nincluding making any payments that are still outstanding. The cleaner and\nquicker the break, the more likely you will be able to do business with the\nother party in the future. \n\n\n\nNurture Your\nConnection\n\n\n\nBusiness relationships aren\u2019t about companies\u2014they are about\npeople. To maintain a business relationship, you need to nurture your\nconnection to the people on the other side. \n\n\n\nIf your organization sends out cards or small gifts at the\nend of the year, include the contacts at the company that you terminated the\ncontract with. If the relationship is important, send an email a month after\nthe termination to check in on the people you worked with. \n\n\n\nThese small personal actions will help keep the business\nrelationship alive because it shows the decision wasn\u2019t personal\u2014it was just\nbusiness.