Worked example
A payroll vendor's contract renews for one year with 60 days' notice. The owner documents two missed service targets, confirms the current employee count, obtains updated security evidence, prices one alternative and agrees remediation plus revised service credits before approving renewal. The example shows the process, not a recommendation.
Methodology
This checklist combines contractual timing, observed supplier performance, current spend, relevant risk evidence and replacement feasibility. Scale the evidence to the vendor's impact; do not treat a checked box as proof that the underlying risk is acceptable.
Questions
What should I review before renewing a vendor contract?
Review the notice clause, performance against service levels, spend, unresolved issues, security or compliance evidence, concentration risk, alternatives and the approval owner.
Who should own a vendor renewal?
One named business owner should coordinate the decision, with Procurement, Finance, Security, Legal or other reviewers involved according to the vendor's risk and value.
Should every vendor receive the same review?
No. Increase the depth for vendors that are high value, critical to operations, handle sensitive data or are difficult to replace.
More renewal checklists
General template · Software contracts · SaaS renewals · All guides
Related free tools
Vendor Risk Questionnaire · Third-Party Risk Score · Vendor Contract Scanner