Contract Management is the agreement to manage contract formation, execution, and analysis of financial and operational performance. However, time-consuming it might be for the businesses, contract management facilitates the need for an active contract system.
In this article at Zycus, Jijnyasa Patowarya shares her opinion about the ideal way of running contract management and some best practices to reap favorable returns.
Standard Operating Process
In a bid to suffice the need for expert advice, organizations arrange a contract for services from other firms. To have a standardized process for contract management, each step entails planning and supervision. Involvement of the groups below is pivotal to support project contracts like a strong pillar:
- Legal Aid: This group is ideally involved in creating legal agreements. The legal team is engaged in verifying if the right regulations and laws are included in the contract. For example, the UK organizations are ensuring that all the deals abide by the new GDPR rules, replacing the previous Data Protection Act.
- Contract Managers: This role needs skills to negotiate with new contracts. Drafting the best contract plan with the vendors, organizing, and executing non-disclosure agreements are some other essentials of this role. The contract managers should be involved in the project, way ahead to evaluate vendor proposals, and to establish contact with the right supplier.
- Procurement Division: The procurement team is accountable for everything, right from preparing the bidding documents, dealing with supplier queries, and shortlisting vendors. Hence, they must have in-depth knowledge of the project needs.
- Vendors Management Team: It is a broader role, majorly valuable to the project managers. The vendor managers establish a healthy relationship with the suppliers to manage several project requirements.
- Project Manager: This is a crucial role in executing the contract. By getting the desired work done within schedule and budget, the project managers ensure if the contract deliverables carried out well or not. They monitor risk management, project scheduling, and planning. They are trained to counter potential issues or defects in the contract.
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