IVP Question Series: Strategy, Fit, and Risk Questions (3 of 3)
Year one with a global compliance provider usually looks great. The pricing makes sense, the contract is fresh, and everyone is motivated to make the relationship work. Then year two arrives.
Prices increase with little notice or justification. Routine work that seemed included now triggers change orders, that need signature and approval from your CFO (they love an endless stream of change order signatures). Your contract renewal date passed months ago (or years) and nobody mentioned it until you asked. The "simple" process to add a new country or adjust headcount suddenly involves hidden fees you were never told about.
I've watched this pattern repeat: companies sign based on year-one pricing and promises, then get surprised by year-two reality(ask about ‘adjusted for inflation’ increases). The best predictor of future behavior isn't what vendors say in sales, it's what they've actually done with existing clients over time.
This is Part 3 of the IVP(Ideal Vendor Profile) Question, designed to help CFOs, GCs, and Heads of People evaluate global compliance, EOR, payroll, and entity providers before signing. This final section focuses on Pricing, Contracts, Governance, and Exit with 8 questions that surface long-term cost behavior, contract discipline, and what happens when you need to move on.
These questions aren't adversarial. Good providers answer them clearly because they know predictable pricing and clean contracts build trust and reduce churn.
1. What's in scope vs extra
"For accounting, payroll, and entity management, what is included in your standard scope, and what would require a separate SOW or change order? Could you share a few common examples where additional fees apply?"
Why this matters: Reduces surprise charges on routine activities.
2. Linking fees to clear drivers
"Can you link each major fee to a clear driver, such as employee, entity, country, or transaction volume; so we can model our costs over the next several years?"
Why this matters: Enables realistic long-term cost forecasting.
3. Volume and complexity impact on price
"How do changes in headcount, entities, or transaction volumes typically affect your fees and service model?"
Why this matters: Shows how costs will evolve as our footprint changes.
4. History of price changes
"Over the past three years, how often have you adjusted pricing for existing clients, what was the typical size of the increase, and what usually triggered those changes?"
Why this matters: Reveals real pricing behavior beyond year one.
5. Annual caps and new fee types
"What contractual caps or guardrails do you offer on annual increases, and what is your policy for introducing new fee categories to existing clients?"
Why this matters: Protects against unexpected fee/scope creep over time.
6. How renewals and expiries are managed
"What systems and processes do you use to track contract expiry dates, notice periods, and scheduled rate reviews, and how far in advance do you commit to notifying clients?"
Why this matters: Reduces risk of lapsed contracts and rushed renegotiations(usually mean unexpected fee increases).
7. Internal approvals for repricing
"What internal approvals are required before pricing, discounts, or key commercial terms on our account can be changed after we are live?"
Why this matters: Ensures there is governance around mid-term commercial changes.
8. Exit and transition when needs change
"If we later decide to move from EOR to our own entities or to another provider, what is your standard exit and data handover process, and how long does it typically take?"
Why this matters: Confirms there is a structured path to transition if our strategy or your role changes.
What's Next!
This section completes the IVP Question series. All three parts are now available::
Part 1: Strategy, Fit, and Risk
Part 3: Pricing, Contracts, Governance, and Exit
Together, these 32 questions form a complete framework for evaluating global compliance, EOR, payroll, and entity providers before you sign.