The process of managing contracts is the set of strategies, tactics and philosophies used by businesses to improve their contracting procedures. From ensuring that contract obligations are fulfilled and monitoring contract data There’s a lot that goes into managing contracts, especially once they’ve been drawn up and signed.
The contract management process can be broken into the following phases:
1. Contract Drafting
Contracts are essential to the running of business and the establishing of boundaries in relationships. However, the process of contracting can be lengthy and time-consuming that can cause roadblocks and delays. Modern technology has made it more efficient. Digital collaboration automation, automated review, and tracked changes have drastically reduced the time it takes to draft contracts. JAGGAER contracts are a special contract management software, has the ability to reduce errors through auto-generation.
2. Contract Negotiation
Negotiating terms and conditions is the next step in contract management. This is a difficult, cross-departmental task and may include multiple versions of contracts. The goal is to create an agreement that is mutually agreed upon and is acceptable to both parties and in line with commercial and legal policy. Contract management software can speed up the drafting and negotiation process by offering users approved templates as well as clauses and other pre-approved language. It can also automate and streamline the process of reviewing and approving by facilitating digital collaboration and allowing teams to submit their reviews from any location at any time. It’s also easy to utilize electronic signatures in CPQ to expedite the executing process, which has been shown to reduce the time it takes to complete contracts by up to 80 percent.
