What is Contract Management?
We can define contract as a written document, which determines the conditions to be followed by parties that will be involved to performance of a project. Generally a contract is a document ensuring a work to be started. On the other hand contract management is mostly considered only as a legal process.
A successful Contract and Project Management ensures the works to be completed with minimum variation and as much in compliance with contract documentation as possible. Bimser’s Contract Management software solution offers various opportunities, such as cost saving and effectiveness, competitiveness, high quality service delivery, accountability, specialization and flexibility and assists to eliminate some risks arising out of profit orientation, such as loss of reputation, management difficulties and lack of technical staff. Contract management has a process and lifecycle within project management. In this process, the contracts are
The parties involving to this process are:
- Procurement (Purchasing) management
- Legal and legislation
- Financial (accounting and finance)
- Other relevant units
Procurement (supplying) is supply of a good or service by a company, person or organization. With eBA Contract Management software, you can manage the processes of creating, renewing and ending all contracts that arise out of all procurement activities of an organization.
Supplier Purchasing Contract
Procurement can be shortly defined as the purchasing of a product from a supplier at the lowest cost as much as possible. To have a good purchasing deal, a contract, by which the conditions agreed between the parties will be documented, must be signed.
You can easily control the procurement process end-to-end with eBA Workflow Management system and you can also control Supplier Purchasing Contracts with eBA Contract Management. This would not only accelerate purchasing procedures with the same supplier, but would also help you to save time and cost. Fields, such as payment terms, delivery terms and delivery address are retrieved from relevant purchasing contract and then exported to the purchase order.
Contract Management Procedure
Contract Management process intersects with tender and procurement processes. It must be ensured within Project Management that all works to be performed are determined by contracts before proceeding to project execution stage.
Contract Manager within Project Management process must develop and/or mature various sample contracts in accordance with the purpose and contract management procedure, based on his/her experience.
Particular attention must be paid on special articles to be included to the contracts to be signed with subcontractors and suppliers. Care must be taken to not to use any unfavorable article and statement for employers against subcontractors and suppliers.
Fields that must certainly be available in the drafts of contracts are as follows:
- Parties (Employer, Worker*, other)
- Work Description
- Duration of Work
- Price of Work
- Payment Method
- Advance Payment
- Materials and services to be provided by Employer
- Worker’s Liabilities
- Penalties to be applied to Worker in case of delay
Contract Tracking Software
Contracts within the organization related with all companies are registered together with their parameters and costs with eBA Contract Management software. The contract lifecycle that begins after the contract request is as follows:
- creating a draft
- following approval stages
- creation of versions by relevant business units after writing their notes and comments
- tracking legal conformity
- tracking the contract expiration date.
It is possible to manage all these stages and to access relevant information, such as who is causing the contracts to be waited and for how long, the reason of waiting, etc. through eBA workflow management system. It is ensured that such created contracts are accessed by staff from anywhere, based on their authorizations. Contracts are controlled by triggering reminders for the contracts that are going to expire or have already expired. Contract tracking software enables to access the documents together with their metadata and it is also possible to search any word within the contracts. Authorized users can view the entire system statistically thanks to visual reports.
With eBA Contract Management Solution:
- Complex business relationships between organizations and the corporate are managed
- Filters, principles, risks and rules are created to audit compliance with the contract
- Different types of contracts are managed in the form of templates, such as renting, service, sales, information technology, maintenance contract, etc.
- Contracts are updated without manual interruption
- Contract costs are reported
- Contract expiration dates are tracked
- Visibility, account and accessibility of contracts are improved by implementing Contract Management Solution
- Which business units create legally binding documents with a multi-functional team are found by evaluating contract management maturity of the organization
- Contract development process is accelerated by using templates together with libraries, e-signatures and automated workflows
- Contracts are accessed through all platforms (IOS , Android, PC) immediately from a single point with simple authorizations.