Things You Should Know About Contract Management

Before you can move from paper-based contracts to digital contracts, you need a comprehensive plan for contract management. Here are some things to keep in mind:

Preparing for contract management

If you’re preparing for a new contract management role, here are three things you should know. Each business is different, but there are some common themes. Out-of-the-box fields include key contact details, business departments, dollar values, and key dates. These are the types of details you’ll need to enter and document during the contract creation process. These should be included in the template for ease of use.

Define the responsibilities of the contract manager. Define his or her job description and provide clear reporting lines. Document all agreed-upon terms and conditions. Make sure the contract manager has sufficient authority. Providers should have regular structured communication routes between the contract manager and the subcontractor. Also, they should have clear expectations of the contract, as well as involvement from stakeholders. Develop a contract management guide. Once the contract has been awarded, the contract manager should start working with the team.

Tools available for contract management

There are many different contract management tools available today. Some are incredibly simple, while others offer advanced features. Here are some examples. Depending on your needs, you can choose between free tools and enterprise-level solutions. Some contract management tools even allow for collaboration. Conga provides a cloud-based service that enables your company to set up a clause library, collaborate with clients, redline documents, and approve contracts without the help of a legal department.

A great contract management tool should be user-friendly and easy to learn. It should also support role-based permissions, customized access, and encryption of data in transit. Encryption of data at rest and in transit is essential for the protection of confidential information. Make sure to look for this feature when evaluating contract management software. Some tools even offer live chat support during business hours. To find the best contract management tool, you should conduct a thorough analysis of your team’s needs.

Cost of contract management

The cost of contract management solutions can vary widely depending on features and functionality. Some contract management solutions offer premium features, but these may come at a higher price. The cost of such features may include e-signing, AI automation tools, and integrations with third party services. The cost of such features can vary greatly, from a few dollars to several thousand dollars per month. When looking for contract management solutions, keep these factors in mind.

KPIs for contract management

When creating a KPI for contract management, it is important to define what “active management” means for your business. There are several ways to define “active management,” including strategic importance, financial value, and the availability of alternatives. These metrics should be regularly reviewed and refined to reflect the organization’s progress. However, it is also important to remember that there’s no single perfect KPI for contract management. Instead, choose a set of metrics that measure the most important aspects of contract management.

To establish these metrics, your contract management platform should host all company processes, people, and documents. There are many ways to measure these metrics, including the number of expiring contracts that don’t have a renewal date. You can also track the number of inappropriate signature approvals, delayed approvals, and disputes resolved. For service contracts, the TRV provides a dashboard that highlights outstanding invoices, unbilled amounts, and loan amounts. These metrics can be very useful in determining the overall performance of your contract.