It is no secret that companies in the oil and gas industry enter into contracts that have the potential to be very lucrative. Regardless of where a company is in the production and distribution chain, oil and gas continue to be pretty solid moneymakers. But, because the firms involved are seeking to maximize their profits, they often try to find creative ways to structure agreements. If companies aren't careful, they may end up agreeing to terms that will gradually erode their own earnings. Here are some of the top things to look out for in these sorts of contracts:Read More
Successful contract administration requires some serious planning and meticulous oversight. Regardless of whether a company’s portfolio has 50 contracts or 500, there will be a lot of details and deadlines to monitor. As a result, it is crucial for a company to have a solid contract management team in place, and one that is capable of overseeing any and all contracts that are added to the portfolio. Here are the top 5 best practices for contract administration:Read More
Successful companies are on a constant hunt for ways to bring in additional money. They spend a great deal of time, energy, and resources researching additional avenues through which they can increase their profit.
However, what many companies fail to realize is that there is a simple way to do just that—a way to increase their bottom line, and it is right in front of them. The key to bringing additional money into a company can be found in reworking a part of the company that already exists: contracts.
Most management processes rely heavily on analyzing data and tweaking processes to improve efficiency and profitability, and contract management is no exception to this reality. Reviewing both contracts themselves as well as the spreadsheets that summarize the data contained within those contracts is a routine facet of the contract management process. However, for companies that have not yet implemented an online contract database via a custom-built contract management solution, this review process is likely beyond tedious. Creating spreadsheets in certain software may work when dealing with a small portfolio, but these documents are very difficult to maintain as the business expands. Companies seeking to capitalize on their contracting relationships need to invest in a dynamic solution that offers a custom reporting feature. These custom reports just may be the secret weapon to staying on track and here is why:Read More
Compliance is a tricky facet of running a business well and maintaining a robust contract portfolio. Understanding the many nuances will take time, and although attaining proficiency in the subject is certainly feasible, developing true expertise will require diligent research on many topics, as well as consistent involvement in the process over a fairly significant period of time.To help professionals get up to speed on the ins and outs of compliance management and understand what it will take to create the right corporate culture that will facilitate the creation and maintenance of an effective compliance program, here is a list of some books on the matter that are worth reading.Read More
Contracting is a standard practice among most businesses, and attorneys for the parties to the agreement often handle all or at least some aspects of the contracting process. As a result, busy company leaders may not take the time to read the contracts and their accompanying documents very carefully. Ideally, there will be a contract management team in place to oversee the portfolio. Regardless of whether there is a formal team or not, someone will have to take the lead on keeping track of contractual matters. This can be a daunting task, although there are plenty of useful and affordable software solutions available that can make the process much simpler. One of many things to consider is how often certain contracts should be reviewed and/or updated. This will obviously vary depending on the nature and scope of each agreement. However, the following is a general guideline as to when to update certain types of contract:Read More
For many businesses, their contract portfolios likely contain various types of agreements. Larger enterprises may have the resources to employ separate teams to oversee distinct categories, but smaller businesses probably have a much smaller team handling the entire portfolio. In either scenario, there will be times when certain batches of agreements need to be analyzed. As a result, it is very important to invest in and utilize practical contract management software that offers customizable report creation. With the right business solution, here is how to create custom contract reports in under 7 minutes:Read More
Companies with sizable contract portfolios will regularly enter into, revise, renew, and terminate their many contractual agreements. Sometimes contract terminations occur under less than ideal circumstances, but that simply comes with the territory. However, just because a contract between two parties must come to an end, for whatever reason, this does not mean that the business relationship must completely end along with it. In fact, it is always wise to maintain cordial relationships with business partners, as situations may change such that a revival of the partnership is in order. Here is how to end a contract without ending the business relationship:Read More
Poor organization has been the downfall of countless companies, with millions of dollars wasted due to negligence or simple carelessness. The cost of such poor organization obviously depends on the size of a company and the industry it serves. Nonetheless, for companies in which contracting forms an integral facet of the business, poor contract management may have catastrophic financial consequences. After all, the fallout associated with contract failures can have a host of legal ramifications, the vast majority of which tend to be quite costly. Here are some simple examples of how poor contract organization and management can result in major cost leakage:Read More
Contract management software is a must have for companies with a busy contract portfolio. These days, there are practical and affordable solutions that likely meet the needs of virtually any type of company that is actively engaged in contracting. Depending on your company’s size or sector, there are probably going to be certain features that are more important to have than others. However, there are some specific features that will be useful for just about everyone. Here are the most important features that your company’s contract management software simply must provide:Read More