In building a contract management system, managers should consider the size and type of business engagements and agreements their company gets. Smaller businesses who only handle a handful of contracts per month can take the manual approach in building a system while larger enterprises that take 10 or more contracts every week need an automated contract management system. Both manual and automated contract management can significantly increase business performance and efficiency. However, the simpler and more accessible automated management contracts can have a better and more tangible result. 


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What are the key elements of contract management?

Contract management can make or break a business. When it comes to managing contracts, managers always see to it that the company’s expected business benefits and financial returns are being achieved. They also want the provider to fully cooperate and respond to the needs of the organization. Contract managers make sure that the provisions of services in the contract are satisfactory for both parties and that there are no contractual disputes or misunderstandings. 


What is effective contract management?

Having an effective contract management process means that you have identified and implemented the best and most efficient ways to sign contracts. Whether the people involved prefer e-signatures or manual signatures, find out which works best and allows you to execute contracts faster.


What is the goal of contract management?

The purpose of contract management is to ensure that all parties included in the contract fully comply with their respective obligations in the most efficient and effective manner possible, delivering the required commercial and operational results of the contract and providing profitable gains.


More on this topic: What is end-to-end contract management?


What makes a good contract management system?

The characteristics of a good contract management system include: Storage of the company's standardized contracts. A central workflow management system to facilitate and manage the preparation and execution of new contracts. Flexibility to deal with the relationship with a supplier and its interactions.


What are the roles and responsibilities of a contract manager?

Contract managers oversee projects carried out in partnership between one organization and another. They are responsible for coordinating all aspects of the project, from reviewing and approving contract terms to coordinating deadlines, approving budgets, and more.


What does good contract management look like?

A successful contract management strategy is expected to garner business benefits, improve efficiency and reduce cost. The provider is cooperative and responsive. Your organization understands your obligations under the contract. There are no disputes or surprises.


More on this topic: How do you build a contract management system?


What are the steps in contract management?

The contract management lifecycle is divided into seven stages. Implementing a proper contract management system can help in having easier and more efficient transitions between the different phases, which include planning, implementation, pre-contract, handover, contract, pre-renewal, and post contract.


What are the 3 types of contracts?

There are numerous types of contract which are generally divided into three categories. 

Fixed price contract refers to the types of contract in which the costs are already known before the implementation of the agreement. This type of contract is riskier for the seller than the buyer. 

Cost-reimbursable contract pertains to the types of contracts in which the buyer pays for the actual cost of the work. Aside from the materials, equipment, and labor cost, the buyer may add a fixed fee or incentive for doing the work. 

Time and materials contract refers to the agreement in which the buyer pays for the cost of time and materials spent in the duration of the project or contract.


What are the 3 common types of contracts used in business?

Aside from the three major types of contracts between businesses, most business contracts fall into one of three categories: general business contracts, sales-related contracts, and employment contracts. 

General business contract covers how the business is structured and how the stakeholders are protected. Common types of general business contract include partnership agreement, indemnity agreement, nondisclosure agreement, and property and equipment lease.

Sales-related contract focuses on the legal agreements applied in the exchange of goods or services. Most common types of sales-related contracts are bills of sale, purchase order, and security agreement. 

Employment contract refers to the legal documentation of the employment relationships within the business. It includes general employment contract, noncompete agreement, and independent contractor agreement. 


More on this topic: What are the types of e-contract?


What is the best contract management system?

The kind of contract management system that should be implemented depends on the needs of the business. Small businesses may opt for the basic softwares, offering only centralized data repository, e-signature, and secure access. Meanwhile, larger enterprises may need a more powerful contract management system that will help draft, monitor, and store past, present, and future contracts. 


How do you keep track of contracts?

Contract management systems should be able to maintain a database of all signed and active contracts. Keep a summary of all the key information about your contracts. Key information includes start date, end date, renewal type, duties and obligations, notices, payment dates, etc. Track contract performance and measure quantifiable gains and losses related to it.


How do I choose a contract management system?

When choosing a contract management system, businesses should look for software that is relatively easy to use and can be customized based on the needs of the business. It is also better to implement a system that allows collaboration, amendment, and sharing. Other factors that should be considered include risk management capacity, secure delivery, and capable centralized storage.


So, who’s the best contract management system?

Some content management systems available in the market offer an end-to-end solution to small businesses while others focus on a specific part of the contract lifecycle. If your business already has a centralized data repository and stable contract management, it is better to opt for a contract management system that can help in post-award. Zendoc has one of the most powerful AI in the market capable of contract discovery, search, and notification. The AI-powered search capabilities of Zendoc can help contract managers easily retrieve past and current contracts using key terms. It can also send automated alerts and notifications of every milestone of the contract, including deadlines, awards, expiration, and more.


More on this topic: What are the best contract management software for 2021?


About Zendoc

Zendoc is a full-service AI-powered contract automation system that not only organizes all of your agreements into a single database but keeps you up-to-date on what you need to do to extract as much value from your contracts as possible. You don’t have to worry about forgetting your obligations because you don’t have to remember them in the first place.

Try Zendoc today for free!


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