Contract management is essential to the economic health of a company and requires the collaboration of different internal actors. The legal department and the operational departments are users of the contract and must coordinate to obtain effective results. Focus on contract management and the job of contract manager in this article.

 

What is contract management?

Contract management is the activity of managing and monitoring a contract throughout its life cycle, through the coordination of internal methods and resources.

→ Read also: Everything you need to know about contract management

The Contract Manager

Contrary to popular belief, the contract manager is not a company lawyer. Their job is to monitor the proper execution of contracts by carefully identifying risks or opportunities for the company. These contract professionals, who are very present in Anglo-Saxon companies, represent real added value for the company.

→ Read also: Contract Managers: practices and future prospects

The challenges of contract management

Contracts are complex objects that can reveal great opportunities when properly monitored, but can also be very negative for the company. The contract is a performance tool and its mismanagement can lead to a 10% loss of turnover, according to a study by the IACCM (The Global Contract Management Association). It is important to monitor the contract, even when it is signed, to ensure that it is properly enforced by all parties.

 

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