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3 Effective Contract Management Tips for Organizations

Updated: Aug 10, 2023

 

Effective contract management is crucial to an organization’s overall success, particularly when dealing with large scale or major projects. Contract-related losses occurring from missed deadlines, unclear deliverables, and over charges can significantly impact a company’s bottom line.


Understanding not only how to structure contracts, but how to manage the deliverables of a contract after it is put in place can substantially improve your projects profitability.


Here are three quick tips to help out:


1- Have a contract implementation plan with a formal handover process in place

Oftentimes the person in your organization negotiating contracts won’t be the only person overseeing the implementation of those contracts. After spending hours and hours negotiating the terms and deliverables of a contract, it’s frustrating to see those negotiations go to waste due to lack of communication during the implementation process.

It’s important to have a clear implementation plan in place that includes a formal handover process for all of your organization’s major contracts. This helps ensure that all of the stakeholders involved in the project are familiar with the deliverables and timelines that were originally negotiated.

2- Embrace technology and document storage

Contract management and document storage tools can be a huge help in effectively managing your organization’s contracts. These tools will help to compare contractor specifications and terms during the bidding process, and also provide for quick access and reference to contracts and documents throughout the entire project lifecycle.

3- Establish a plan to review your contract management process frequently

There is no one size fits all when it comes to contract management. Understanding which processes work best for your organization will take time, effort, and experience. It’s important to have a plan in place to periodically review your organization’s contract management processes to understand what’s working and what isn’t. Identifying where past contracts have gone wrong can provide valuable insight that will help you better manage and negotiate your organization’s contracts moving forward.



Posted on August 18, 2021

Facilities Management




National Grid




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