Contract Management

What is contract management?

Contract management is the process of creating, implementing, and reviewing contracts. Whether this is between a business and supplier, or partner, contract management is an essential part of your business. As your business grows, contract management can become complex. Therefore, the need for effective strategies and processes is important.

How does contract management work?

Whether your business is a start-up or a much bigger organisation, contract management works in the same way.

Contract management can be split into two key stages:

• Pre-award stage
• Post-award stage

Pre-award stage

The pre-award stage is any work that takes place prior to a contract being signed. During this stage, it’s important to ask yourself:

• Why is the contract being established?
• Will the supplier be able to deliver?
• How will the contract work once it’s been awarded?

Keeping in mind these questions will help you form a successful contract.

Post-award stage

The post-award stage is where contract management and maintenance come in. This can be divided into three stages:

• Service Delivery: Ensuring service is delivered with the agreed performance and quality levels.
• Supplier Relationship: Maintaining and developing an open and constructive relationship
• Contract Administration: Formal management of the contract