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The Importance of Contract Management Murrah And Killough PLLC

Contract management is the process for managing a contract’s lifecycle, from review and negotiation to execution to compliance and maintenance. Implementing a contract management system for your company will ensure all contracts follow the proper procedures from start to finish, streamlining the contracting process and mitigating risk.

A contract management system becomes even more important as your business and the number of contracts you enter into grow. Various deadlines, terms, amendments, and obligations are challenging and complex to maintain. Implementing an effective contract management system will achieve benefits including but not limited to:

1. Protecting the company’s interests

Streamlining a contract review process that passes through the appropriate personnel will reduce the likelihood of agreeing to a contractual term or provision that is adverse to the company’s interest.

2. Understanding commitments of the company’s resources

A company’s contract information database will show where resources, such as money, are allocated. Using a data-driven analysis from the contract management system, companies can adjust resources for their benefit.

3. Identifying obligations on the company

To avoid a potential breach of contract, companies should understand and identify the scope of all of the obligations assumed by the company from the contract. This can be achieved by implementing an initial analysis and documentation process under the contract management system.

4. Ensuring execution by appropriate and authorized personnel

Defining the proper personnel for various types of contracts will ensure every contract has authorized execution. Without authorized execution, your company may be subject to liability.

We can help strategize with your company to improve its contract management system.

Contact us today to set up a training for your company.

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