Ridgefield, CT – 13th Feb 2026 – New research from World Commerce & Contracting (WorldCC), conducted in partnership with Ironclad, finds that organizations lose an average of 11% of contract value after signature, a phenomenon described as “post-signature value leakage.” For large enterprises with $500 million in annual contracted spend, this equates to as much as $55 million in lost value each year.
Photo Courtesy of: WorldCC
The findings are detailed in the report Closing the Procurement Value Gap: How Smarter Contracting Can Prevent 11% Value Leakage, which examines how value is lost during the post-award phase of the contracting lifecycle. The research shows that losses do not primarily stem from poor negotiation, but from weaknesses in how contracts are implemented, governed, and managed after they are signed.
According to the report, value leakage accumulates through multiple operational failures, including unauthorized scope changes, missed or incorrect price adjustments, untracked performance obligations, and innovation commitments that are negotiated but never activated. These “micro-leaks” collectively result in significant financial impact across large contract portfolios.
A key driver identified in the research is what WorldCC terms the “handover gap” – the point at which procurement and legal teams exit once a contract is executed, leaving delivery and operational teams without sufficient commercial context or accountability for managing contractual commitments.
“This is a wake-up call for the C-suite,” said Tim Cummins, President of WorldCC. “The 11% gap isn’t just a procurement problem; it’s a structural failure that leaves innovation on the table and money in the drain.”
The research highlights that the most severe capability gaps contributing to value leakage are process maturity and clarity of responsibilities, followed by weaknesses in governance, operating models, and capability development.
WorldCC estimates that organizations which modernize their contracting approach can recover between 2% and 3% of total spend in the first year alone, and between 5% and 10% over a three-year period. For high-spend enterprises, this represents a potential recovery of $25 million to $50 million over time.
“This research shows that most value is won or lost after the contract is signed,” Cummins said. “If organizations want to protect commercial outcomes, they need to treat contracts as living assets, not static documents.”
Dan Springer, Chief Executive Officer of Ironclad, said the findings highlight the role of technology in improving post-award performance. “Most organizations have already negotiated significant value into their contracts, but much of it remains unrealized. AI-powered contract management systems make it possible to track obligations, monitor performance, and manage contracts as active commercial assets throughout their lifecycle.”
The report outlines a series of recommendations to reduce value leakage, including redesigning contracting operating models, improving post-award governance, strengthening accountability across functions, and adopting the Contract Management Standard™. It also emphasizes the role of integrated contract lifecycle management (CLM) technology and artificial intelligence in improving obligation tracking, performance monitoring, and renewal management.
The study is based on WorldCC research, practitioner interviews, and benchmarking data from the Commerce & Contract Management Institute (CCM Institute). It forms part of WorldCC’s broader research agenda focused on improving commercial performance, governance, and contracting practices across industries and regions.
The full report, Closing the Procurement Value Gap: How Smarter Contracting Can Prevent 11% Value Leakage, is available for download at: https://info.worldcc.com/closing-the-procurement-value-gap
About World Commerce & Contracting (WorldCC)
World Commerce & Contracting is a not-for-profit global membership association dedicated to helping organizations achieve high-performing and trusted trading relationships. With more than 75,000 members from over 20,000 organizations across 180 countries, WorldCC supports professionals involved in commercial and contract management through research, certification, standards development, education, and events. The association focuses on improving the quality and integrity of trading relationships worldwide, promoting better contracting practices that support economic performance, governance, and social outcomes.
Contact Information
Kate Hodgins
Commerce & Contract Management Institute,
Email: info@ccm.institute
Website: https://ccm.institute/