Contracts and partnerships are an essential part of today’s business culture. Contract management is becoming an integral part of project management, and business in general and is essential to the efficient working of any business entity. It helps in reducing the costs and risk to the parties involved in the contract.
It is the process that empowers both parties to a contract to meet their obligations in order to deliver the objectives mentioned in the contract. It is a process in which contracts are managed from the process of the formation till the signing of the contracts and beyond. This process includes aims and objectives of the parties, various indicators of performance, legal sanctions, future changes to the contracts and other pre-requites of a contract. It can be summarized as the process of systematically and efficiently managing contract creation, execution, and analysis for the purpose of maximizing financial and operational performance and minimizing risk. The question faced by many Corporations and other business entity is how to get about using a system of contract management. The process of establishing a system of contract management usually takes about a year. At completion of each step there are huge savings on cost and time and also results in increased profits.
Contracts and partnerships are an essential part of today’s business culture. Contract management is becoming an integral part of project management, and...
Contract Management is important for the parties because:
It set standards for the services, performance or goods provided by one party to the other party.
The Contract Management System should be such that it yields more benefits rather than adding on to your present set of troubles and the system should consist of...
Service delivery management is concerned with ensuring the service is being fully delivered as agreed between the parties...
Standardized Processes and Procedures: This ensures that the contracts are all created, maintained and monitored in a standardised manner and reduces the risk on the parties...
In order to explain what contract management we must analyze the aspects and features of Contract management itself and these are: