What is meant by Contract management?
"Contract management" refers to the efficient administration of contracts throughout their entire lifecycle. This includes the creation, negotiation, approval, implementation, monitoring, and archiving of contracts. The goal of contract management is to ensure compliance with contract terms, minimize risks, and enhance collaboration between the contracting parties.
Typical functions of software in the "contract management" domain are:
- Contract administration: The software enables centralized storage and management of contract documents, including contract drafts, changes, addenda, and terms.
- Contract monitoring: The software supports the monitoring of contract deadlines, milestones, and deliverables to ensure compliance with all contract terms.
- Notifications and reminders: The software sends automatic notifications and reminders to relevant parties when specific contract deadlines or milestones are approaching or exceeded.
- Negotiation management: The software facilitates collaboration in contract negotiations by tracking change proposals, comments, and versions during the negotiation process.
- Compliance management: The software supports compliance with legal and regulatory requirements by monitoring and documenting compliance with contract terms.
- Risk management: The software assists in identifying, assessing, and monitoring contract risks, as well as developing strategies for risk mitigation.
- Reporting and analysis: The software enables the creation of reports and analyses on contract performance, costs, risks, and trends to support decision-making processes.
- Integration with other systems: The software seamlessly integrates with other enterprise systems such as CRM (Customer Relationship Management) or ERP (Enterprise Resource Planning) to facilitate data exchange and process integration.
