How To Work The Contract Management Process

You know the basic information about contract management and the ink is dry on your contracts but do you know how to make your system run more effectively? If the answer is no then you may need to read on.

Contract management is crucial but it isn’t easy. You need meticulous observance, attention to detail and somewhere to store all records securely. Regardless of if you have hundreds of contracts or just tens, you need a system which holds all contractual obligations and prepares you for knowing how to renegotiate ahead of expiration.

Easy administration is the goal for any business, and processes like contract management need to be simple to create and use. Here are some key things to help the system run smoother.

Security – Nowhere is this more critical than when using signed documents. Keep them locked away in storage when on paper and always have them in secure online storage with protection through a password. Never give away the document for someone to review, always use a copy. Protecting documents and securing the contents is done through this.

Organization – As with everything in business, you need to keep your contracts organised. Get them in your contract management system, and in a spreadsheet to keep all critical information at hand. Key things to remember are origination date, contact information, provisions of the contract, payment address and contract termination date. By being organised, all of the information that you need will be at hand.

Dates – Any contract will set out certain dates whereby things need to be completed or there will be renewal and termination at certain times. A contracts calendar is a good idea so that everybody knows what is happening with the contract and alerts can be sent to all employees when necessary.

Responsibilities – Projects need to be checked periodically. To make sure that there is no deviation from contractual obligations you need to make sure that you’re up to date with the company’s responsibilities. Remove outside interference and involve upper management to keep the strategy focused.

Renewal – Renewing a contract is just as important as getting it in the first place. Be sure to know a few months ahead of the renewal date what exactly is happening and begin to gather documents and achievements that will help in renewing a contract. Discount rates, sales figures and participants is something that needs to be packaged into a document.

Prioritize – There’s a hierarchy in everything in life, and contract management is no different. Be sure to distribute management and responsibility on a matter of urgency. As with anything in business, you will often realise that while some contracts are routine others will be tough to monitor.

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