When handling multiple contracts at the same time, it is good to have a contract management framework that can provide a clear and standardized approach on how the business manages and administers contracts. Contract management framework may be observed using a standardized template and language for every contract. It can also refer to the specific process adapted by the business to ensure the smooth flow of transactions and agreements. It is important to keep in mind that the contract management framework is not the same as the framework agreement.


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What are the key elements of contract management?

When building a contract management system, contract managers should always consider and incorporate the four key elements of contract management. These key elements include validated supplier data, use of contract management system, use of notifications, notes, and document trail, and continuous monitoring of supplier status.


What are the main elements that should be included in the contract management plan and why?

The most important agreements in the Contract Management Plan are: clearly defined output, performance levels and objective information requirements; sanctions for missed terms; and proper understanding of roles and responsibilities in monitoring and information provision.


What is the lifecycle of a contract?

The contract life cycle is the evolutionary process in which a contract is drafted, reviewed, signed and executed. The "life cycle" is a model by which the complicated journey of a contract is divided into different phases, which include planning, implementation, pre-contract, handover, contract, pre-renewal, and post contract.


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


What is meant by contract management?

Contract management is the process of managing agreements from inception, execution, and termination/renewal. An effective contract management can help businesses streamline the different phases of contract lifecycle easier and more efficiently, reducing time and costs. 


Why do we need contract management?

A tangible contract management feature helps manage obligations effectively, saving the two parties a lot of time and effort while providing clear advantages in terms of business strategies and procedures. Contracts dictate every aspect of important business strategies and relationships, so it is important to have proper contract management in place to maximize efficiency and performance and minimize costs and risks.


What are contract management skills?

To ensure expectations are set realistically and milestones are met, a contract manager should possess skills in negotiating and influencing the other party. It is also important that a contract manager has effective communication and project management skills, as well as the ability to lead others and manage potential risks.


More on this topic: What are the top 5 contracting skills?


What are contractual frameworks?

A framework is an agreement with suppliers to establish terms for contracts that can be awarded during the term of the agreement. In other words, it is a general term for agreements that lay down conditions for making certain purchases and call-offs.


What is the difference between a framework agreement and a contract?

A framework agreement refers to the overarching agreement between purchasing and supplying parties that outlines the principles under which contracts can be placed. Whereas a contract is a commitment between a buyer and a supplier for the supply and payment of goods, services, and works. While contracts usually include the specific costs, project scope, and timelines, framework agreement rarely provides any specific commitment in terms of the value of the project. 


Who can use a framework agreement?

Framework agreements are usually used in larger projects or in a multi supplier agreement. The goal of framework agreement is to establish a long term relationship with the other party as either the buyer or the seller. When it comes to contract negotiations, frameworks are commonly used during the bidding process or call-off. Interested parties may apply and send their framework bid during the competition. When the bid is accepted, the winning party will then enter into a long-term framework agreement with the business.


More on this topic: https://support.zendoc.com/a/solutions/articles/70000327614


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.

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