Best Practices to Improve Your Business's Contract Management

Effective contract management might be companies’ greatest performance tool: according to a review by McKinsey, most businesses have a vast majority of their annual revenues tied to contracts with suppliers and vendors (in some industries – specifically, the utilities, aerospace and defense, and food manufacturing sectors – that number is as high as 90 percent).

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Why You Should Delegate (Some) Legal Contract Responsibilities

Delegating contract management activities to your non-lawyer professionals has a variety of advantages, but it needs to be planned deliberately and strategically. The right delegation strategy can help your reimagine workflows, empower staff, and alleviate drudgery by delegating legal contract responsibility to non-lawyer team members while still maintaining control and mitigating risk.

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Reduce Contractual Risk with Online Contract Management

Contracts are designed to enforce accountabilities and reduce the risks of business relationships. But they can also introduce vulnerabilities to your organization, whether due to unfavorable languages and clauses, missed obligations or other scenarios that can arise during the contract management lifecycle.

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Contract Managers vs Project Managers

Contract managers and project managers are integral members of many business teams. Although their roles and responsibilities are similar, and in some instances may even overlap slightly, these are distinct positions requiring unique knowledge and skills. For simple contracts and projects, it is often possible and economical to utilize one team. However, for more complex endeavors, it is generally best to rely on separate teams with content-specific expertise. Here are some key differences between contract managers and project managers.

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Avoid Time Thieves With Contract Lifecycle Management

Managing tasks and responsibilities associated with tens of thousands – if not more – contracts is, by nature, painstaking work due to complexities within contracts, coordination that must exist between teams and external parties, and a host of other factors. According to research, 78 percent of contract managers say they are under increased pressure to reduce contract-related costs. Additionally, contract managers must often contend with contract inconsistencies, a cumbersome contract management lifecycle, slow business processes, and other risks.

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Three Types of Agile Contracts

Contracts have long been considered fixed instruments with clear mandates and harsh consequences for failure to comply. For years, there was an unwavering rigidity in the way that contracts were negotiated, drafted, and managed. The idea was for parties to recognize the contractually written obligations as fixed, with the rules for performance clearly stated and necessitating near perfect obedience. In general, the price, scope, and duration of the contract were clearly defined, and there was little room, if any, for deviations.

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Contract Management Trends for 2018

Business relationships have grown more complex in recent years, and thus contract management has had to evolve in order to keep up with the times. To understand how technology has affected contract management, you only have to notice how rare it is these days for contracts to be written on paper instead of electronically.

Larger technological developments will continue to change how contract management is practiced -- perhaps on a level as revolutionary as the paperless contract. Now that we're in a new year, it's a good time to reflect on what lies in store for contract management in the near future.

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5 Best Practices for Commercial Contracts

These days, a good contract is one that is adaptable. Companies often spend an inordinate amount of time and money negotiating and drafting legally binding contracts in order to have reliable, fixed agreements with their business partners. But, this does not mean that contracts should not be flexible, as agile contracts allow for better relationships and results. Here are five best practices for handling commercial contracts given the need for adaptability:

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What Are Target Cost Contracts?

When you sign a contract, there's a certain level of risk that you assume. It's always a possibility that either party will fail to hold up its side of the bargain, resulting in dissatisfaction, delays and inefficiencies.

Going over budget is one of the most frequent reasons for broken contracts. Lump-sum contracts and reimbursable contracts are often both unappealing for one of the two parties because they place all of the cost burden on either the contractor or the client, respectively.

In an effort to resolve this standoff, target cost contracts have emerged as a happy medium between these two extremes. So what exactly is a target cost contract, and when is it most useful for contract management?

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4 Steps to Create an Agile Contract

Traditional contracting focused on risk mitigation, allocation of liability, avoidance of conflicts, and significant financial consequences in the event of non-performance or a breach. Although this approach to contracting persists today, there is a growing desire for companies to incorporate a more relaxed mindset when it comes to negotiating and drafting contracts. The agile contract is one that prioritizes flexibility and outcomes over stringent adherence to doing things a certain way and demanding complete obedience. With constant changes in technology and the ease of conducting affairs across state and national borders, companies will have to adapt to new ways of thinking or risk losing business to a company that is able and willing to do so. Here are four steps to take to create agile contracts:

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