Contracts are used in virtually every industry, and many of the contract clauses that are used are applicable across sectors. In fact, there are certain contract clauses that are likely to make an appearance in just about any contract that is drafted. Commercial contracts, in particular, tend to contain a standard set of terms and conditions. Here are six key clauses found in commercial contracts:Read More
The success of most business arrangements is contingent upon the people involved in the deal working well together. With respect to contract management, establishing and cultivating a healthy working relationship is particularly important, as soured contracts often lead to lengthy and costly legal disputes. In far too many instances, a contracting agreement falls apart due to minor mistakes that unnecessarily evolve into much larger issues. Many of these problems stem from poor management techniques, as well as flawed communication processes. Here are five relationship management tips for contract managers to help avoid contracting hassles:Read More
The Electronic Signatures in Global and National Commerce Act (E-Sign Act) was signed into law in 2000. The E-Sign Act ensures that electronic signatures are as legally binding as the traditional, pen-and-paper version. But is it the right alternative for your organization’s contracts? In most cases, yes! Opting for e-signatures can have multiple positive effects on how an organization processes contracts.Read More
Saving on the bottom line has long been an important objective for procurement and contract management. As technological advances expand procurement’s analytical capabilities, this department may play an increasingly active role in other aspects of an organization’s growth.Read More
Contract management within the government involves navigating common challenges for all large organizations, as well as specific considerations beyond those faced in the private sector. Federal contracts are subject to the Federal Acquisition Regulation (FAR) System, which guides acquisition planning, contract formation, and administration. Federal agencies must comply with strict, detailed guidelines that regulate spending, contract evaluation processes, and other aspects of the contract management lifecycle. State and local agencies are subject to certain federal or state laws, but may not be bound to follow FAR regulations when it comes to dealing with contracts.Read More
For most companies engaged in contracting, entering into subcontracts is a routine necessity to ensure that a project is completed in an efficient and timely manner. Even larger companies with a healthy amount of resources at their disposal often find it advantageous to subcontract with another entity that specializes in the provision of a certain good or service. Of course, entering into an agreement with subcontractors can be risky, as their shortcomings or delays can cause a ripple effect across the entire project. Here are some tips for mastering subcontracts:Read More
Mergers and acquisitions are some of the most complicated business events an organization can face. The transaction is complex and time-consuming. There are seemingly endless moving parts to consider. Executives need to integrate or restructure entire business systems, set strategic goals, and assign the right people to direct projects and programs throughout the process. Not to mention that a merger or acquisition often involves transitioning hundreds of employees, and thousands of contracts. If contracts get neglected, they can introduce dangerous risks for the business.Read More
Legal contracts are foundational for companies of any size and industry. By codifying the exact relationship between a business and its customers, contracts place weight behind the promises that both parties make to each other and provide a framework for handling disagreements.
Unfortunately, far too many companies are failing to live up to the best practices and standards of contractual risk management. The International Association for Contract & Commercial Management, for example, estimates that companies lose nine percent of their total revenue every year via poor contract management.
From a complex contracting landscape to scarce investments in good contracting processes, the potential issues that you'll face are significant. The following article will give you an overview of the challenges of contract management and what you need to do to make your processes more efficient and productive.Read More
Contracting with external parties for the provision of goods and services is an inevitability for most companies. Depending on where a vendor is located and the scope of the services needed, long term agreements can become quite costly over time. Procurement professionals know all too well that cutting costs wherever feasible is critical to a business’s profitability and survival. But, when there are limited options available or a company is crunched for time, it may be necessary to enter into a contract with the first firm that presents an offer, irrespective of the projected costs of the arrangement. In these instances, companies must engage in periodic assessments over the life of the contracting relationship to identify potential ways to cut costs. Here are three cost-saving strategies for outsourced contracts:Read More
Outsourcing is the way of the world. Businesses of all sizes frequently find themselves in situations in which they simply do not have the time or resources to take care of all of their operational activities. Thus, it is often necessary to recruit professionals external to the company to help handle certain matters. This is true across sectors and throughout many departments within a business, including the contracting world. In many cases, companies subcontract with other firms to provide a service independent of or in conjunction with their own service delivery. It is clearly risky to outsource certain activities, as it is harder to control for quality, but with the right management approach, it can prove to be quite useful. Here are some tips for managing outsourced contracts:Read More