Is Contract Management challenging?

Contract management also known as Contract administration. It is the process and procedures undertaken by companies to regulate the negotiation, execution, performance, modification and termination of contracts with various parties including customers, vendors, distributors, contractors and employees. Contracting is one of the crucial activities in the success of any business. Generally, it is taken as ‘Lawyer’s work’. The contracting parties are directly or indirectly depended on lawyers to govern their Contract.

The process starts from In-house counselling with the clients. In-house counselling sometimes become importantly involved in the negotiation of business issues and do have a great deal of input into the strategy, goals and objectives of a particular Contact Management. For each proposed contractual arrangement, the company should prepare a checklist of the actions that it might be expect to take in order to have a smooth Contracting process. It is essential that you work closely with your clients well in advance to establish mutual expectations regarding the role that you will be expected to play in the negotiation, drafting, finalization and monitoring of a particular contract. Many times, you are responsible for drafting the contract and all related documents. Mangers of the company are typically responsible for identifying and resolving all of the business and risk management issues associated with the contract and the underlying relationship between the parties.

A virtuous contract management process ensures that both the buying organization and the supplier fulfill all of the obligations that they agreed to in signing a contract. Contract depends on Consent. It also helps the buying organization achieve all of the benefits it expected to when contracting with a supplier.

Not having a good contract management process in place has consequences both to the buying organization as well as to the purchaser. If no one is managing the performance of the contract, an organization is likely to fail to meet its goals that it had for the project associated with the contract. Such failures may include delayed timelines, cost overruns, and more.

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