5 more steps to effective contract management

Efficient contract management is essential if your business is to be successful. Ensuring that all aspects of the agreement are met and signed off will mean that there will be no breaks in the chain of delivery of your goods or services.

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1. The legal aspects of the supply contract are a starting point which all companies must observe. The understanding of the transaction and the relationship between the parties will be crucial. Individuals within the company who will have to deal with the delivery of the agreement must be aware of their responsibilities. The role of legal counsel can be found at http://www.nortonrosefulbright.com/files/ppt-london-epc-and-insurance-claim-120916.pdf.

2. Once the legalities are in place the drafting process comes into play with a back and forth process between the parties. It is essential to ensure that this is timed properly as any delays can lead to a fracturing of the relationship between the parties. Once this process is completed both parties will want to ensure checklists are ticked off and memoranda are agreed. Third party agreements affecting the contract will also have to be confirmed, and never misunderstand how this may bite into the main contract timeline.

3. Vendor management helps companies to control costs and establish excellence in delivery. Technology can help here, such as that provided by companies such as ContractsWise https://www.contractswise.com/ . Such assessment allows companies to develop their contracts and suit them to the market they are serving. This is double sided in that it also helps clients to achieve their own objectives. In a competitive world, anything which makes the client more comfortable within the relationship is sure to smooth that relationship and lead to continuing business and potentially repeat orders.

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4. Creating a long-term relationship with clients or suppliers is key to ensuring financial benefit for both sides of any contract. From the purchaser’s point of view, constantly changing vendors will only disrupt their own company. A penny saved is not necessarily going to benefit the company in the longer term. Building a strong relationship with suppliers ensures that your own company is not disrupted. Contractual management works both ways and smooth supply chains benefit everyone. Building relationships for the future is beneficial to both parties.

5. Cross-party relationships are crucial in any sector. Ongoing reviews of contractual relationships will ensure long-term contracts are successful.