Contract Management - the basis for your commercial success
Contract management forms the foundation of a company's commercial and legal activities. The execution, administration and analysis of contracts is part of the daily work of many departments and thus also part of the potential for risk that arises from contracts in many configurations.
Why has contract management become a prerequisite for commercial success in any company? The Wikipedia (www.wikipedia.org) article on contract management sheds light on this question:
"Contract management or contract administration is the management of contracts made with customers, vendors, partners, or employees. Contract management includes negotiating the terms and conditions in contracts and ensuring compliance with the terms and conditions, as well as documenting and agreeing any changes that may arise during its implementation or execution. It can be summarized as the process of systematically and efficiently managing contract creating, execution, and analysis for the purpose of maximizing financial and operational performance and minimizing risk.
Common commercial contracts include employment letters, sales invoices, purchase orders, and utility contracts. Complex contracts are often necessary for construction projects, goods or services that are highly regulated, goods or services with detailed technical specifications, intellectual property (IP) agreements, and international trade.
A study has found that 42% of enterprises indicated that the top driver for improvements in the management of contracts is the pressure to better assess and mitigate risks. In addition, nearly 65% of enterprises report that contract lifecycle management (CLM) has improved exposure to financial and legal risk. [...]
The business-standard contract management model, as employed by many organizations in the United States, typically exercises purview over the following business disciplines:
» Authoring and negotiation
» Baseline management
» Commitment management
» Communication management
» Contract visibility and awareness
» Document management
» Growth (for Sales-side contracts)
» Issue and change management
» Savings (for Procurement-side contracts)
» Service level agreement compliance
» Transaction compliance"
Contract management. (2008, November 17). In Wikipedia, The Free Encyclopedia. Retrieved 09:36, November 18, 2008, from http://en.wikipedia.org/w/index.php?title=Contract_management&oldid=252376840
With the product suite LCM – Legal Contract Management for contract management and its various modules, The Quality Group has developed valuable off-the-shelf systems which assist you each day as an information and risk management system by simplifying your internal responsibilities. |
