If a business relationship with an employee, contractor, freelancer, supplier or another company is properly managed, the company is growing and can concentrate on business rather than issues.
Contract management consists of a few phases:
Early phase - the idea or the project is being negotiated and the contract is being drafted
Mid-phase - the project or job has been awarded
Post-award phase - when the contract is being supervised and managed for performance
If the contract management is properly handled then the contract’s value is not deteriorating, the suppliers are accessible and the service delivery is timely and adequate.
Successful contract management does not mean just drafting a contract, but means supervising the compliance and resolution of the problems if they arise, monitoring changes or breaches of contract, budget control, reporting, working out dispute resolution procedures, auditing and performance evaluation, anticipating business needs.
Contract administration (before signing a contract) and contract management (after signing a contract) are two phases of the contracting process. In order to secure that your company’s contracts and documents are drafted, formed, executed, organized, maintained and supervised according to company standards, it’s imperative to have solid contract administration and contract management people in place.