Contract management is an essential part of every business deal. It can greatly help in outlining what is to be expected from both parties and mitigate any potential risk and misunderstandings. Having a comprehensive knowledge of the different phases of contract management can help in saving valuable time, manpower, and resources. The primary goal of contract management is to minimize the time spent in doing administrative tasks and maximize strategies that can accelerate and automate agreements and deals.
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What is the process of contracting?
The process of contracting may differ depending on the company or type of agreement. However, the first step of every contract management is knowing what type of contract is needed in the agreement. Having the right type of contract also means using the proper form and template. After choosing the proper form or template, the contract manager will gather all the necessary information relating to the agreement in the contract.
Business owners usually find a negotiator for the contract, but, in some instances, the contract manager may also take on the role of the negotiator. After the contract is drafted, it is then sent to relevant parties for the review process. If the terms and conditions of the contract are acceptable to all parties involved, the contract will then be signed and enforced.
What are the steps in correct signing?
There’s a lot more in contract signing than just affixing your signature in a piece of paper. Don’t let your guard down just because the negotiation is over. When the final contract is presented to you for signing, check whether the terms and conditions are the ones agreed upon during negotiations.
Also, it is advised to check the date in the contract, as well as if all parties involved have affixed their signatures. If the authorized signatory is not present, make sure that the other party has the authority to sign the contract. Most importantly, each party should keep an original copy of the contract.
More on this topic: What is end-to-end contract management?
What should a contract management plan include?
A contract management plan contains all the important information about contract management. The plan defines systems, responsibilities and processes to ensure that the parties comply with the terms during the term of the contract. Contract management plan starts prior to the enactment of the contract.
Important information and arrangements included in the contract management plan are the key contacts, roles of all parties involved, strategies in dealing potential issues, performance benchmarks, key dates, possible risks, privacy assessments, communication strategies, reporting requirements, contract delivery requirements, and record management.
More on this topic: What are the best contract management softwares 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.