The process of managing contracts is the set of strategies, tactics and rules that are used by businesses to simplify their contracting processes. From ensuring that contract obligations are met and monitoring contract data There’s a lot that goes into managing contracts, especially after they’ve been written and executed.
The contract management process can be broken down into stages:
1. Contract Drafting
If you’re writing a Non-Disclosure Agreement, Master Service Agreement or Statement of Work, contracts are crucial to running a business and establishing guardrails for relationships. The process of contracting can be long and tiring and can cause delays and obstacles. Modern technology has made it much easier. Digital collaboration, automated reviews and modified contracts have reduced timeframes for drafting significantly. JAGGAER contracts, a specialized contract management software, has the ability to minimize errors by auto-generation.
2. Contract Negotiation
The next step in the process of contract management is negotiating terms and conditions. This can be a complicated cross-departmental task that often includes multiple versions of the contract. The goal is to come up with a solution that is acceptable for both parties and also complies with commercial and legal guidelines. Contract management software can help speed up the drafting and negotiation process by providing users with approved templates, clauses and other pre-approved language. It can also automate and streamline the process of reviewing and approving by facilitating digital collaboration and permitting teams to submit their reviews from any location at any time. It’s also simple to utilize electronic signatures in CPQ to speed up the executing process and has been proven to cut contract turnaround times by as much as 80 percent.