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Stage One: Contract PreparationIdentify Your Needs, Establish Goals, Set Expectations, and Define Risk. Stage Two: Author the Contract. Stage Three: Negotiate the Contract. Stage Four: Get Approval Before Finalizing the Contract. Stage Five: Execute the Contract. Stage Six: Keep Up With Amendments and Revisions.
Contract management includes negotiating the terms and conditions in contracts and ensuring compliance with the terms and conditions, as well as documenting and agreeing on any changes or amendments that may arise during its implementation or execution.
The contract management process is the interaction between the vendor and the purchaser that ensures that both parties meet their respective obligations in any procurement relationship. The aim is to meet the operational, functional and business objectives required by the contract and provide a profitable interaction.
Contract management is the process of managing contract creation, execution, and analysis to maximize operational and financial performance at an organization, all while reducing financial risk. Organizations encounter an ever-increasing amount of pressure to reduce costs and improve company performance.
Stage One: Contract PreparationIdentify Your Needs, Establish Goals, Set Expectations, and Define Risk. Stage Two: Author the Contract. Stage Three: Negotiate the Contract. Stage Four: Get Approval Before Finalizing the Contract. Stage Five: Execute the Contract. Stage Six: Keep Up With Amendments and Revisions.
A great contract manager is the bridge between the business and the supplier. To ensure expectations are set realistically and milestones achieved, the following are essential tools in every contract manager's toolkit: negotiation and influencing smarts. Effective communication and project management skills.
Contract managers often serve as the key point of contact between a business and third parties to ensure timely review and approval of any variations. They also provide recommendations and negotiate directly with customer attorneys or purchasing staff to craft a final document that is satisfactory to all parties.
Contract management provides tangible value. Unlike other business fields, contract management provides you with the opportunity to develop tangible skills that are valuable to potential employers. For example, the ACCM certification is a common requirement for several contract management-related positions.
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