We’ve outlined five crucial tools contract managers need to arm themselves with to traverse the always-shifting landscape of contract management best practices moving forward, as new developments and choices for effective contract management are constantly emerging.
You can also seek help from a HubSpot contract management solution to get effective tips for principles Of contract management in 2023. Continue reading to know more.
Secure Contract Repository System
Tools for digital contracts and document storage have been used by top companies to increase productivity. However, a lot of people continue to use inadequate manual methods that include emails, messy digital storage, and filing cabinets for paper paperwork. With these techniques, it is nearly hard to enforce contract archiving and retention regulations, maintain version control, observe deadlines, remain on top of milestones, or keep contracts safe.
Although maintaining contracts may seem like a straightforward process, organizations are missing out if they don’t have access to a secure contract repository, which is a crucial component in enabling them to lower risk, maintain control over their contracts, and enhance contract performance.
Check the background
Never sign or agree to anything without first researching the other party’s legal history. Although everyone is entitled to the benefit of the doubt, it’s crucial to prove that each party is legally qualified to enter into a commercial partnership. Consider carefully the ties and obligations that already exist if there are any, and assess how a new agreement would affect them.
Construct the Contract Lifecycle
Utilize your contract management system to adapt the lifetime of your contracts to the unique requirements of the contractual relationship. Starting by writing the scope statement and then determining the necessary papers is a smart strategy. The appropriate processes, deliverables, and review intervals can then be set up from there. It’s crucial to identify the essential details your business requires from the other party at this point to create a precise and comprehensive contract.
Agree on the Review Process
Take preventative action if getting the answers to those questions could pose significant bottlenecks. Make sure you allot enough time for the drafting, review, discussion, revision, and completion of deliverables because clients frequently want expedited schedules. Decide on the length of the review sessions during the start meeting. Make sure to hold parties accountable for revisions that are made on time and mention that extra review time will affect the next procedures and deadlines. You should also put such agreements in writing.
Automate Contract Performance Tracking
Beyond the acceptance and signing of an agreed-upon contractual arrangement, future-focused contract management demands actionable insights on how to enhance contract processes. To manage contracts better in 2023, firms should automate contract performance tracking and other processes.
Modern contract management software can offer thorough audit trails and performance data. Task notifications, alarms, and CLIN (contract line-item number) capability, which includes sub-contract flow-downs, can all be used to manage the contract lifecycle. For thorough control, you may also set up contract tracking routines with email notifications.
