An introduction to contract management
Whether they’re working in the public or private sector, organisations face increasing pressure to reduce costs and improve financial performance. With the impact of regulation and globalisation, contract volumes and their complexity have increased pressure on efficient contract management.
Managing contracts so that all obligations are fulfilled from both sides has long been crucial, but changes in documentation, regulation and compliance increase pressure on companies to ensure their contract management system is coping with the demands.
There is a recognition that automation is increasingly seen as a method of improving contractual processes and satisfying compliance requirements in addition to analytical needs.
This has led to a more formal approach to contract management structures and an increase in the use and availability of software applications designed to cope with these needs found at sites such as https://www.contractswise.com/.
Contract management involves service and delivery and expectations on benefits and value for both parties. Equally important is that both parties understand the obligations that the agreement imposes on either side. Contract management eases these potential bumps in the road, and efficient solutions will involve the technology to spot any issues early during the contract. This will ensure there are no surprise disputes and that any that do arise will be dealt with in a professional manner.
Advice on such eventualities can be found by visiting the Chartered Institute of Procurement and Supply website.
Managing ongoing contracts is crucial, so it is vital to have a contract management framework in place to monitor the agreement and ensure that all aspects of delivery on both sides are free of friction in order to avoid conflict. At the outset, it is important to ensure that an entry-level agreement is set up, allowing both parties to understand how the contract can be successfully delivered.
A contract management system will automate many of the processes that would otherwise take up many hours of a contract manager’s time and increase efficiency across the organisation.
Once this has been put in place, the day-to-day monitoring of the agreement can begin, ensuring that a dialogue exists between the parties to the contract. This allows them to oversee the development of their agreement and make sure that neither side is in breach of the original terms and conditions of the contract.