The Contract Management Process

Contract management is the process that outlines strategies, techniques and principles that companies use to streamline their contracting processes. Contract management entails a lot, from ensuring that contract obligations are met and reporting to analyzing the contract information.

The process of managing contracts can be broken down into the following stages:

1. Contract Drafting

Contracts are vital in the conduct of business and the establishing of boundaries in relationships. The contracting process is often long and tiring which can lead to roadblocks and delays. Fortunately, the advancement of technology has made the process easier. Digital collaboration, automated reviews and modified contracts have reduced timeframes for drafting significantly. JAGGAER contracts is a contract management software, has the ability to reduce mistakes through auto-generation.

2. Contract Negotiation

Negotiating terms and conditions is the next step in managing contracts. It can be a complex task, which is cross-departmental and could include multiple versions of contracts. The goal is to create a mutually acceptable agreement that is acceptable to both parties and in line with the legal and commercial policies. Contract management software can speed up the contract negotiation and writing process by providing templates as well as clauses and other pre-approved text. It can also automate the review and approval processes by facilitating digital collaboration and allowing teams submit their reviews anytime and from anywhere. It’s also simple to use electronic signatures in CPQ to speed up the execution process, which has been shown to reduce the turnaround time of contracts by up to 80 percent.

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