Contract Management Process Definition
The contract management process is the system by which an organization manages its contracts. It includes the creation, negotiation, and execution of contracts, as well as the administration and monitoring of those contracts.
The first step in the contract management process is to identify the need for a contract. This may be done by evaluating business processes and identifying areas where a contract could provide more clarity or certainty. Once the need for a contract has been identified, the next step is to develop the terms of the contract. This involves working with stakeholders to identify what should be included in the contract and how it should be structured.
Once the terms of the contract have been developed, it is then time to negotiate with the other party or parties involved. This stage of the process can be complex, as it requires balancing the interests of all parties involved. Once an agreement has been reached, the next step is to execute the contract. This usually involves signing the document and ensuring that all parties have a copy.
After a contract has been executed, it must then be monitored to ensure that all parties are complying with its terms. This may involve periodic check-ins or audits. If there are any issues with compliance, they must be addressed immediately. The final step in the contract management process is to close out the contract when it expires or is no longer needed. This includes archiving all documents and ensuring that any payments that are due have been made
