Contract Management is the process of managing the execution, performance, modification, negotiation, and termination of the contracts with the parties. It involves negotiation and compliance of the terms and conditions of the contract and also documentation and affirmation of changes or modification which may arise during the execution of the contracts. It can be treated as an asset or a liability based on the type of digital and integrated process. It can be a common commercial contract, e.g., employment letter, sales invoice, purchase order, utility contract, etc. or complex contract, e.g., Intellectual Property agreement, international trade agreement, etc.
Contract management is a typical process having several stages, which are—
- Initial requests
- Authoring contracts
- Negotiating the contract
- Approving the contract
- Obligation management
- Amendments and revisions
- Auditing and reporting
There are some important key steps followed in a contract management life cycle during the transaction or purchase of goods or services in every business. These important key steps include compliance, schedule, quality, delivery, and payment. It is the duty of the contract manager to ensure that these steps have been followed properly. A poor contract management can lead to contractually imposed fines, litigation and legal fees, customer attrition, soured business relationships, missed opportunities for renewal, loss of goodwill, issues with supply and workflow, etc.
Contract Analytics help in identifying similarities and differences in the agreement with respect to the terms of the clauses and the language used. It facilitates valuable performance insights in all spheres of the contract. A contract analyst usually keeps track of a few important elements in a contract like details of the contracting parties, a timeline of the contract, renewal terms, warranties, termination, and pricing. The process provides transparency in every stage of contract management lifecycle within the scope of identifying inefficiencies and finding opportunities for improvement without wasting extra time.
Contract Maintenance is the process of keeping the contract documentation updated and check its relevancy. The maintenance of a contract must be performed in such a way that it ensures the changes in the contract are fully documented. It involves sending and receiving of notifications on dates, revisions, and amendments so that accuracy and efficiency of contracts can be maintained.
Gracious offers a wide range of corporate legal services, like contract management, analytics, and maintenance, however, we are not limited to these services only. We handle contract visibility & awareness, authoring & negotiating, and communication management through the nine stages. Contact our Sales Representative to know more about our services.