We’ve made it to the end of another year! The ContractWorks team is looking forward to an exciting 2020, but we also think it’s important to look back and reflect on the last 12 months of contract management news, tips, and best practices.
This article covers some of the top ContractWorks blog posts from 2019, including posts on the stages of contract management, contract breaches, contract monitoring best practices, and more.
7 Essential Stages of Contract Management
Effective contract management is about more than simply drafting, approving, signing, and storing corporate agreements. To deliver optimal results, your process should include a series of steps that give you the insight needed to determine which contracts to prioritize, how to best implement and execute, and what to do when it comes time to renew.
To ensure your contract management practices are putting you in a position to succeed, you should be sure the following stages are built into your process:
Read more about each of these stages in this February blog post.
4 Types of Breaches of Contract You Need to Be Aware Of
Any time you enter into a legal agreement, you accept some level of risk that the contract won’t be executed exactly as indicated in the agreed upon terms. As the volume of contracts increases, so do the chances you’ll eventually run into a scenario where a contract doesn’t deliver on everything agreed to by all parties.
To help mitigate contract risk and protect your business, it’s important to understand the different types of contract breaches and how to recognize that a breach occurred.
Here are the four main contract breach classifications:
Material Breach of Contract
Minor Breach of Contract
Anticipatory Breach of Contract
Actual Breach of Contract
This blog post from June explains the differences and offers tips to help reduce your risk of contract breach.
3 Contract Monitoring Best Practices You Can Implement Now
Another way to reduce contract risk and ensure your agreements are delivering the intended value is to implement a few contract monitoring best practices.
Once your contracts have been signed and the parties involved have started delivering against them, there are a few questions you’ll want to ask.
Is the contract performing as intended?
Are any adjustments needed to keep the deliverables on track?
Is there anything we learned from this contract that would cause us to do something differently next time?
These three best practices below can alleviate some common pain points and improve your contract management process:
Formalize your handover process
Make monitoring-related tasks part of your schedule
Establish a monitoring scorecard for each new contract
Read more about each of these practices in this July post.
4 Tips to Ensure Successful Contract Management Implementation
According to the International Association of Contract and Commercial Management (IACCM), improving contract management can improve profitability by nearly 10 percent annually.
It’s clear that having strong contract management practices and procedures is good for your business, but how do you get there?
Here are four contract management implementation tips to help you realize more value from your contract portfolio and reduce unnecessary risks:
Develop an implementation plan
Have a formal handover process
Use a dedicated contract management software solution
Understanding the Impact of a Records Management System
Putting a system in place to track and monitor your most important corporate documents is a critical step for any business, regardless of size. Some of the benefits of having a records management system include:
Access to the information you need, when you need it
Better contract management
Improved document security
Reduced risk of compliance penalties and other costs
It’s estimated that more than 70 percent of companies are unable to locate at least 10 percent of their contracts, which is a pretty staggering number. The first step in fixing that issue is to take an organized and systematic approach to records management. It might seem overwhelming to gather and organize all of your documents, especially if they are scattered across multiple offices, hard drives, and filing cabinets, but the benefits of doing so far outweigh the initial burden.
Read more about the impacts of a records management system in this January blog post.
The Buyer's Guide to Contract Management Software
Quickly identify solutions to your specific contract management challenges.