Contract management is the process that outlines methods, strategies and principles that companies employ to streamline contracting processes. The management of contracts involves a variety of to do with ensuring contract obligations are being met and reporting to analyze contract information.
The contract management process could be broken down into stages:
1. Contract Drafting
Contracts are crucial to the running of business and the establishing of boundaries in relationships. However, the contracting process can be lengthy and time-consuming that can cause delays and roadblocks. Fortunately, the advancement of technology has made the process simpler. Digital collaboration, automated reviews, and tracked changes have reduced contract drafting cycles significantly. JAGGAER contracts, a specific contract management software, has the ability to minimize errors by auto-generation.
2. Contract Negotiation
Negotiating terms and conditions is the next step in the management of contracts. This can be a complicated cross-departmental job and may include multiple versions of contracts. The aim is to come to an agreement that is mutually agreeable and meets the needs of both parties and is in line with commercial and legal policy. Contract management software can facilitate the negotiation and drafting process by providing templates clauses, clauses, and other pre-approved texts. It also facilitates the process of reviewing and approving by facilitating digital collaboration and allowing teams to submit their reviews at any time and from any location. It’s also simple to utilize electronic signatures in CPQ to speed up the executing process as well as to reduce the turnaround time of contracts by as much as 80%.