Contract Administration Software
Contract administration, also know as contract management, is the management of contracts made with customers, vendors, partners, or employees. Contract administration incorporates the following activities: negotiating the terms and conditions in contracts and ensuring compliance, documenting and verifying any changes that may arise during its implementation or execution. The actions of contract management can be summarized as the process of systematically and efficiently managing contract creation, execution, and analysis. Utilizing such a procedure instead of manual administration of contracts will greatly increase financial and operational performance and reduce risk.
A closely related term to contract administration is contract lifecycle management, or CLM. Viewing the whole process of contract management from start to end and allowing that to be the driver of day to day business activities is the mission of contract lifecycle management. Doing so allows most organizations better understanding of their operational, business, financial, and legal risks. This can also help identify bottlenecks in the contract creation and maintenance or execution phase, thereby paving the road for streamlining the operations.
Typical commercial contracts include employment letters (internal contracts), sales invoices (for customers), purchase orders (for suppliers), and utility contracts (overhead activities). These are the generic types of contracts which can be somewhat automated using traditional office productivity solutions. But for most other industries such a generic contract type would not suffice. Complex contracts are frequently required for construction projects, goods or services that are highly regulated or with detailed technical specifications, intellectual property (IP) agreements, and international trade agreements.
Contract administration software can help manage corporate contracts which are of both generic and complex nature. These automation tools allow for quick turnaround time for generic contract creation, something that is difficult to achieve with traditional manual tools such as word or excel. For complex contracts these software tools are absolutely indispensable. They will help the process from contract creation to maintenance, monitoring, compliance and renewal.
Instead of using the inefficient labor intensive manual contract management process, consider contract administration software that can improve tracking and monitoring and provide an end to end solution. They are easy to implement and once set up will allow for stricter compliance monitoring. You can also monitor pricing variations such as price rebates, or compare contractual obligations against changing policies and milestones. Regulatory policies are also included in the tracking part of such software. Use of contract administration software thus greatly reduces the chances of errors through operational oversight and failure of regulatory non-compliance resulting from a lack of updates in policies and procedures. Aside from the improvement in your business risk profile, your customers will love you for the fast cycle time you can offer them with the help of these software tools.