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The Contract Management Process

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Contract management is the process that outlines strategies, techniques and principles that companies employ to streamline their contracting processes. From ensuring that contractual obligations are met, and reporting on contract data There’s a lot goes into managing contracts, particularly after they’ve been drawn up and signed.

The contract management process can also be broken into phases:

1. Contract Drafting

If you’re writing an Non-Disclosure Agreement, Master Service Agreement or Statement of Work, contracts are essential for conducting business and setting up safeguards for relationships. However, the contracting process can be lengthy and time-consuming which can lead to delays and obstacles. Thankfully, modern technology has made the process simpler. Digital collaboration as well as automated review and tracked changes have drastically reduced the time it takes to draft contracts. In addition the use of software for managing contracts like JAGGAER Contracts can help reduce mistakes made by hand, thanks to auto-generation.

2. Contract Negotiation

The next step in the contract management process is to negotiate terms and conditions. It can be a complex, cross-departmental task and may contain multiple versions of contracts. The goal is to reach an agreement that is mutually agreeable and meets the needs of both parties and is in line with legal and commercial policy. Contract management software can speed up the contract negotiation and the drafting process by providing templates clauses, clauses, and other pre-approved text. It can also automate and streamline the review and approval process by facilitating digital collaboration and allowing teams to submit their reviews from anywhere anytime. It’s also easy to utilize electronic signatures in CPQ to speed up the execution process, which has been shown to reduce the turnaround time of contracts by up to 80 percent.

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