The contract management process is the collection of strategies, methods and rules that are used by businesses to simplify their contracting processes. Contract management is a broad area including ensuring that the contract’s obligations are met, and reporting, to analyzing contract information.
The contract management process can be broken down into the following stages:
1. Contract Drafting
No matter if you’re creating a Non-Disclosure Agreement, Master Service Agreement or Statement of Work, contracts are essential for conducting business and establishing safeguards for relationships. The process of contracting is usually time-consuming and exhausting which can lead to delays and obstacles. Fortunately, technology has made the process simpler. Digital collaboration with automated review and tracked changes have drastically shortened contract drafting cycles. In addition the use of software for managing contracts like JAGGAER Contracts can aid in reducing manual errors by generating auto-generated.
2. Contract Negotiation
Negotiating terms and conditions is the next step in contract management. This can be a challenging, cross-departmental task and may comprise multiple versions of contracts. The goal is to reach a mutually acceptable agreement that will dataroom index satisfy both parties and is compatible with legal and commercial policy. Contract management software can speed up the contract negotiation and drafting process by providing templates including clauses, clauses, and pre-approved text. It can also automate and streamline the process of reviewing and approving by facilitating collaboration via digital technology and allowing teams to submit reviews from any location anytime. It’s also simple to use electronic signatures within CPQ to speed up the executing process, which has been shown to reduce turnaround times for contracts by as much as 80%.