What is contract management process?
Contract management is the process of managing contract creation, execution and analysis to maximize operational and financial performance at an organization, all while reducing financial risk. Organizations encounter an ever-increasing amount of pressure to reduce costs and improve company performance.
What is the difference between contract administration and contract management?
The key difference lies in the timing of these tasks. Contract administrators work out how the contract is worded before the parties agree to the arrangement, while contract managers make sure that each party has the capabilities to carry out their contractual obligations after the agreement is signed.
What is Contract Management in Procurement?
Contract management is an integral part of the procurement cycle. A contract management plan assists contract managers to properly manage contracts by addressing transition management, performance monitoring and by helping to ensure that both parties fulfil their commercial and contractual commitments.
What does a contract manager do?
Contract management or contract administration is the management of contracts made with customers, vendors, partners, or employees. The personnel involved in contract administration required to negotiate, support and manage effective contracts are often expensive to train and retain.
Why is contract management important?
Managing contract risk is an important part of the contract management process. ... In order to promote operational efficiency, capitalize on opportunities, maximize growth, and mitigate risks associated with contracts, companies must implement and maintain an organized contract management process.
What are the benefits of contract management?
Efficient contract management also frees up valuable employees to move away from administrative work and become more strategic. Not spending time entering numbers or typing out emails allows employees to spend more time focusing on increasing revenue, getting more deals, and maintaining compliance.
