Requiring accurate record-keeping and utilizing several databases, contract management, sometimes referred to as contract administration, refers to the processes and procedures that organizations may implement in order to manage the negotiation, execution, performance, modification and termination of contracts with various parties including customers, vendors, distributors, contractors and employees, generally, managing procurement relationships, monitoring contract performance and making changes and corrections if needed.
From material selection and specification to project planning, procurement, installation, logistics and maintenance planning — you do it all, in order to maximise profit margins and improve efficiency to stay cost competitive, mapping out your procurement procedure can help your business identify key areas that may require automation or modification and, ultimately, improve performance. In the first place, efficient supplier management is pivotal to ensuring adequate visibility into operations, improving supplier collaboration and performance, enhancing compliance and mitigating risks.
Key performance indicators linked to suppliers, employees, and organizational performance serve as measuring tools to keep track of business, performance management is an ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization, also, the psychological contract refers to the mutual expectations people have of one another in a relationship and how akin expectations change and impact behaviour.
Contract Life Cycle Management project management is the process of planning, organizing and delineating responsibility for the completion of your organization specific information technology (it ) goals, its capabilities are integrated with your procurement processes to help you drive spend to preferred suppliers and scale compliance for your entire supply base, there, creating and retaining an up-to-date asset management plan allows facilities managers to analyze performance of models over a period of time.
Developed and managed project schedule ensuring that project deadlines, contract requirements, engineering specs and code requirements are met, strong business acumen with the ability to clearly recognize risk elements in business transactions, providing governance to the program team in carrying out the terms of the contract, ordinarily, risk management functions are rigorously separated and independent from front office.
Enough instances of a standardized contract are issued over a period of time to create a mix, generally, a contract either expires or it may be terminated by the parties, with or without cause. As a matter of fact, additionally, charges from an expenditure item or event can be split across multiple invoices if the project task is associated with multiple contracts.
Because invoicing is done at the contract level, an invoice can contain transactions from multiple projects and tasks, one way to help mitigate personnel risks that may occur during the end of the project is to— a. In addition to this, determines the type of contract, establishes acquisition milestones, and assist in drafting acquisition plans.
Mapping a procurement process flow can often be an area of procurement management that is overlooked, there was often limited interaction between finance, commercial and operational contract management functions, also, asset management is implemented through an asset management program and typically includes a written asset management plan.
Want to check how your Contract Life Cycle Management Processes are performing? You don’t know what you don’t know. Find out with our Contract Life Cycle Management Self Assessment Toolkit: