Contract controlling

What is meant by Contract controlling?

The term "contract controlling" refers to the monitoring and management of all contract-related activities within a company to ensure that contractual obligations are met, risks are minimized, and financial goals are achieved. Contract controlling involves analyzing and evaluating contracts in terms of compliance, performance, and profitability. It serves as a central tool for optimizing contract management and supporting corporate decision-making.

Typical software functions in the area of "contract controlling":

1. Contract Fulfillment Monitoring: Automated tracking and verification of compliance with contractual obligations and deadlines.
2. Risk Analysis: Identification and assessment of risks that may arise from existing contracts, including financial and legal risks.
3. Cost and Revenue Analysis: Analysis of the financial aspects of contracts to assess profitability and economic efficiency.
4. Reporting and Dashboards: Provision of reports and visual representations (e.g., dashboards) for real-time monitoring of contract performance.
5. Contract Change Management: Tracking and managing contract changes, including adjusting contract terms and documentation.
6. Notification Systems: Automated reminders and alerts, such as for contract expiration, payment deadlines, or upcoming negotiations.

Examples of "contract controlling":

1. Fulfillment Status: A dashboard displays the current status of contract fulfillment, such as whether all agreed-upon services have been delivered.
2. Cost Overrun: An analysis reveals that project costs exceed the contractually agreed budget, requiring cost control measures.
3. Risk Scorecard: A system evaluates the risks associated with a particular contract and provides an overall rating (e.g., low, medium, high).
4. Contract Renewal: An automatic notification informs that a contract is about to expire, requiring a decision on renewal.
5. Revenue Forecast: A forecast of expected revenues is generated based on contract terms to support financial planning.
6. Compliance Report: A report analyzes whether all compliance requirements have been met and what actions may be necessary.