What are Some Strategies You Can use in Contract Management

Contract management can seem pretty straightforward at first you look over the contract and then sign it, right? Unfortunately, there’s more to it than that, as contracts often come with specific requirements that need to be met to keep the deal going forward. The overall goal of contract management is to ensure that both parties are honouring their end of the agreement, which can be tricky if both parties aren’t fully aware of what their duties are or how they’re expected to meet them.

1: The Basics of Contract Management

Contracts help protect your business and ensure that the terms of an agreement are carried out, while they also help you better understand the needs of your customer. Below is a list of five basic contracting principles to keep in mind when drafting a contract:

2: The Benefits of Using a Contract Management Strategy

Contracts are important tools for businesses to stay on the right side of the law and be able to protect themselves from liability. That’s why a business needs to invest in contracts. One way to do this is through a contract management strategy, which includes:

3: The Different Types of Contract Management Strategies

a) If the relationship with the customer is long-term, then it’s a good idea to have them sign an agreement each year. This will ensure that they know the terms of their service and give you a chance to review any changes they want to make.
b) If the product or service is not expensive, consider having customers pay upfront rather than upon delivery.
c) Have contracts be as short as possible so it’s easier for both parties to understand what is expected of them.
d) Contracts should be reviewed at least every three years. The passage of time may change how certain clauses apply and could even render them invalid. You should also consult with legal professionals about the legality of certain clauses and include time limits for when disputes must be resolved by.
e) Contracts should include instructions on how disputes should be handled and which jurisdiction will govern those proceedings
f) Contracts should include confidentiality agreements that protect all information about both parties during discussions about the contract or after it has been completed.

4: How to Choose the Right Contract Management Strategy for your Business

There are two types of contract management: reactive and proactive. The decision as to which type to choose is based on what stage your business is currently at. If your business is still starting, then it might be best to go with the reactive approach. With this strategy, you wait until a problem arises before taking action, often after the damage has been done. The proactive approach, on the other hand, takes care of the problems before they happen by identifying the potential risks ahead of time and setting up preventative measures to head them off in the past. To decide which one best suits your company’s needs, think about how much time you have available for additional work.

5: Tips for Implementing a Contract Management Strategy

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