Contracts & Pricing

Evergreen Contract

Also known as: Auto-renewing contract

An evergreen contract is an agreement that automatically renews at the end of each term unless one party gives notice to cancel or change it.

Evergreen clauses keep a contract running continuously — often rolling over for successive fixed periods — which suits stable, ongoing services where re-tendering every cycle would waste effort. The convenience is real, but so is the risk: without active review, prices drift, terms date and better alternatives go untested because the contract simply renews on its own.

The practical control is a diarised notice period and a contract register that flags each renewal well before the deadline. That gives buyers a genuine choice — renegotiate, benchmark the market, or exit — rather than defaulting by inertia. Treating each auto-renewal as a decision point, not an administrative event, keeps evergreen arrangements competitive.

Frequently asked questions

What is an evergreen contract?
An evergreen contract automatically renews at the end of each term unless a party gives notice to cancel or renegotiate, keeping the agreement running without a fresh signing.
What is the risk of an evergreen contract?
Auto-renewal can lock you into stale pricing and terms if no one reviews it. Tracking notice periods in a contract register turns each renewal into a deliberate decision.

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