What Are The Steps Involved In Contract Management Process In Procurement?

Introduction

Are you involved in procurement and wondering how to effectively manage contracts? Look no further! In this blog post, we will delve into the steps involved in contract management process for procurement. From identifying stakeholders to monitoring performance, we’ll cover it all. So grab a cup of coffee and join us on this journey towards successful contract management in procurement.

The Steps Involved In Contract Management Process

There are various steps involved in contract management process and these steps are as follows:

1. Identification of the requirement: The first step towards effective contract management is to identify the requirement. The requirement can be identified through a number of means such as market research, feasibility study, etc.

2. Drafting of the contract: Once the requirement is identified, the next step is to draft the contract. The contract should be drafted keeping in mind the objectives of both the parties involved. It should be clear and concise so that there is no scope for misunderstanding later on.

3. Negotiation of the contract: After drafting the contract, it needs to be negotiated between both the parties involved. This step is important to reach a consensus on all the terms and conditions mentioned in the contract.

4. Execution of the contract: Once both the parties have agreed upon all the terms and conditions of the contract, it needs to be executed accordingly. Both parties need to fulfil their obligations mentioned in the contract.

5. Monitoring of the contract: After execution, it is important to monitor the progress of work as per schedule mentioned in the contract. Any deviations from this schedule need to be addressed immediately so that corrective measures can be taken accordingly.

6. Termination of the contract: Once all deliverables mentioned in the contract have been completed successfully, then only it can be terminated mutually by boththe partiesinvolved.

Conclusion

Contract management process in procurement is a critical part of any business. The steps involved ensure that all parties are legally and financially accountable for the goods or services being provided. Taking the time to create an effective contract management process can help to protect both the supplier and buyer from unforeseen risks, while also ensuring that they receive what they expect in a timely fashion. Understanding these steps can be beneficial regardless of whether you are procuring goods or services yourself, or if you have outsourced it to another company.