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Contract Management

Contract management is the process of managing contract creation, execution, and analysis to reduce financial risk and improve performance. It involves authorizing contracts, monitoring commitments, and ensuring compliance. Contract management can be divided into pre-contract, execution, and post-award phases. It is important for managing obligations effectively and dictating business strategies. Contract management software can aid in administration for complex contracts with multiple parties.

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Saad Irfan
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51 views3 pages

Contract Management

Contract management is the process of managing contract creation, execution, and analysis to reduce financial risk and improve performance. It involves authorizing contracts, monitoring commitments, and ensuring compliance. Contract management can be divided into pre-contract, execution, and post-award phases. It is important for managing obligations effectively and dictating business strategies. Contract management software can aid in administration for complex contracts with multiple parties.

Uploaded by

Saad Irfan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CONSTRUCTION MANAGEMENT | ASSIGNMENT

CONTRACT MANAGEMENT

Definition:
Contract management is the process of managing contract creation, execution and analysis to
maximize operational and financial performance at an organization, all while reducing financial
risk. Organizations encounter an ever-increasing amount of pressure to reduce costs and improve
company performance.

Application of contract management:


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, outsourcing and international trade. Larger contracts require the
effective use of contract management software to aid administration among multiple parties.

Areas of contract management


The business-standard contract management model, as employed by many organizations in the
United States, typically exercises purview over the following business disciplines:
 Authorizing and negotiation
 Baseline management
 Commitment management
 Communication management.
 Contract visibility and awareness
 Document management
 Growth
 Contract compliance

Phases of contract management


Contract management can be divided into three phases namely
 pre- contract phase
 contract execution phase
 post award phase (often referred to as contract compliance/governance)

Importance of contract management:


A tangible contract management function assists in managing obligations in an effective manner;
this saves the two parties significant time and effort and provides benefits in terms of business
strategies and procedures. Contracts dictate every aspect of key business strategies and
relationships.
CONSTRUCTION MANAGEMENT | ASSIGNMENT

Contract Management lifecycle:

Contract management in civil work:


A construction contract is a mutual or legally binding agreement between 2 parties based on
policies and conditions recorded in document form. The two parties involved are one or more
owners, and one or more contractors.

Contract Management in Procurement:


Contract management is an integral part of the procurement cycle. A contract management plan
assists contract managers to properly manage contracts by addressing transition management,
performance monitoring and by helping to ensure that both parties fulfil their commercial and
contractual commitments.
CONSTRUCTION MANAGEMENT | ASSIGNMENT

Contract Management Software Reviews


Featured Contract Management Software Reviews:
 Agiloft Review.
 Updraft Review
 Concord Review. ...
 Onit Contract Administration and Contract Review & Approval Review.
 Contract Safe Review.
 Coupa Contract Lifecycle Management Review.
 Great Minds Software Contract Advantage Review.
 Blueridge Software Contract Assistant Review.

Responsibilities of the Contracts manager:


Responsibilities of the Contracts manager include the financial monitoring and control of the
contracts, ensuring Health, Safety, Environmental and Quality compliance is maintained and the
Company's procedures and objectives are achieved.

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