Contract = Agreement + Enforceable.
Contract management, refers to the processes and procedures that companies may implement in order to manage the negotiation, execution, performance, modification and termination of contracts with various parties including customers, vendors, distributors, contractors, employees etc.
WHY Contract Management: The answer to this question is that contracts need to be methodically managed in order to ensure that financial and operational risk is minimized and performance maximized.
Contract management can be a time-consuming task, but if properly managed, can be one of the most lucrative areas for building business relationships and generating revenue.
First analyze and evaluate all existing contracting processes, and then categorize each by the following criteria:
Level of Risk – High , Medium and Low
Value to the Organization- In terms of transaction and volume
Routine Agreements & Contracts vs. New/Infrequent Contracts
Draft questionnaire, contract checklists and draft templates accordingly.
Contracts are legally enforceable documents that should not be approached lightly. It’s important to be organized and prepared with the right resources.
WHAT achieved by the contract Management: