Contracting under geopolitical uncertainty

This report examines how geopolitical uncertainty is increasingly disrupting supply chains, commercial relationships, and contract performance. Based on a 2026 survey, 94% of respondents reported experiencing geopolitical disruption in the past 12 months, with many organizations facing pricing pressure, supply shortages, delivery delays, and regulatory challenges. However, only 31% believed their contracts were adequate to manage these disruptions effectively. Common gaps included weak price adjustment provisions, poor risk allocation, and limited hardship or adaptation mechanisms.

The findings suggest that the main weakness lies not only in contract terms but in fragmented contracting processes, disconnected data, and poor early risk visibility. Most organizations manage disruption through renegotiation and collaboration rather than formal legal remedies, highlighting the importance of strong relationships, adaptive contracts, and effective governance. The report concludes that resilience in volatile markets depends on adaptive contract design, stronger cross-functional alignment, and improved early warning capabilities.

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