Small companies are being advised that significant financial savings can be made by re-negotiating existing contracts.

A report published by international management consultancy The Gap Partnership proposes that the value held within contracts signed six months ago or more has shifted significantly.

Small firms should re-negotiate contracts to reflect the changing financial situation so the contract accurately reflect the risks and uncertainty of the current economic climate.

"Failing to re-negotiate your contracts translates to paying over the odds. The recession has changed what represents value and now is the time to re-visit deals agreed before summer last year," said Steve Gates, managing partner of The Gap Partnership.