What is Contract management?

The contract management is also called as the contract administration. This management deals with the management on contracts that is made with the customers, vendors, partners, employees etc… The contract management includes neglecting the terms and conditions of the contract. It also ensures the compliance with the terms and conditions and also agrees any change with the documents when it is implemented or executed. In other words, it can be said that contract management as the effective way of managing the process both in a systematic and effective way and also analyzing the maximum output of the finance.

Contract types:

Contract is an agreement that binds two parties under law. The parties who are identified in the agreement have to fulfill all the terms and conditions that are mentioned in the agreement. In the olden days, the contract was achieved through signature or performance between two parties. But with the advance of the science the claims of the contract have also improved. The contracts have been differentiated into various types depending upon the type agreement they prefer. They are the sales contract, purchasing contracts, partnership agreements, trade agreements and intellectual property agreements.

Areas of contract management:

The contract management involves various areas under its application that are typically used. The various areas involved are as follows.

  • Authoring and negotiation
  • Baseline management
  • Commitment management
  • Communication management
  • Contract visibility and awareness
  • Document management
  • Growth of sales side
  • Issue and change management
  • Savings of contract
  • Service level agreement
  • Transaction compliance

These are some of the areas applied under the contract management technique for its application.