4 Tips for Taking Control of a Growing Contract Portfolio

Contract portfolios are larger than ever before, and many organizations are struggling to keep up. According to IBM, Fortune 1000 companies now manage an average of 20,000 to 40,000 active contracts at any given point in time.

While you may not have quite so many contracts on your plate (or maybe you do), having a growing contract portfolio causes issues such as poor contract management performance and a high rate of human error.

Meanwhile, McKinsey & Company estimates that suboptimal contracts and poor processes cause organizations to lose an average of 9 percent of their annual revenue.

The good news is that you don’t have to sit helplessly and watch as your contract portfolio balloons far beyond your control. By following the 4 tips below, you can regain control of your contracts and make your contract management processes more efficient and effective.

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5 Tips for Contract Amendments

Contracts are generally considered rigid, consequence-imposing agreements that require stringent compliance. Although it is true that contracts create a legally binding obligation to perform in a certain manner, they do not have to be written in a completely inflexible fashion. The key to making changes to a contract that will not create unnecessary issues is to go about it in the proper manner. In general, when the parties to an agreement wish to make a change to a term or clause as it exists in the contract, they should do so by negotiating and drafting an amendment. The creation of an amendment is just as important as the creation of the contract itself, as it is changing the nature of the original arrangement. Here are five things to consider when amending a contract:

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The Importance of a Post-Award Kick-Off Meeting in Contract Management

The ink might barely be dry on the documents, but that doesn't mean you can kick back and relax just yet. After signing a contract, it's crucial that you hold a post-award kick-off meeting as soon as possible in order to get everyone on the same page. Below, you'll find an overview of everything you need to know about how to start off your contract on the right foot.

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How to Perform Quantitative Risk Assessment for Oil & Gas

The oil and gas industry is notoriously dangerous and presents a host of safety challenges. Of course, this industry can also be incredibly lucrative and firms within this particular sector can do very well. The key for many companies is to ensure that all possible risks are considered and planned for, as the financial consequences of any mistake or disaster can push even the most well-funded firm to the brink of or even into bankruptcy. Here are some of the important things to consider when performing a quantitative risk assessment:

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Everything You Need to Know About Online Contract Signing

At this point, it is probably more abnormal if a company is not paperless or relying on cloud computing. Technology has made running a business easier than ever, and most leaders are clamoring to find affordable solutions that simplify countless business operations. Granted, there is still some of that old school mentality that there should be hard copies of important documents, but it is probably safe to say that that is the minority viewpoint. Now, most companies have partners and clients fill out and sign documents electronically, including contracts. Here is what you need to know about online contract signing:

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What Every Oil & Gas Company Must Know About Contract Management

For years, oil and gas companies primarily utilized production sharing contracts when partnering with governments or other firms to research and develop natural resources. Lately, however, there has been increasing use of service level agreements to govern these relationships. This type of agreement has various advantages, as well as one particular disadvantage that can be rather significant. Despite their limitations, they are continuing to become the agreement of choice among companies in the oil and gas sector. Here are two reasons these agreements are so popular now, as well as the major drawback to them, and some things that firms must consider before agreeing to this kind of arrangement.

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Contract Changes, Contract Managers, and the Importance of Communication

As we previously mentioned, it is critical for companies to closely track changes to contracts, as such changes tend to alter the deal, augment responsibilities, and lengthen the contracting relationship. Of course, in addition to carefully negotiating necessary changes and paying attention to any changes that are made, it is extremely important to ensure consistent communication throughout the process. Unfortunately, the team who deals with the initial contract negotiations as well as subsequent negotiations relating to needed changes often differs from the team who puts those changes into a written form. And, the team who must actually implement and oversee the changes once they have been finalized and formalized in writing is usually a whole new team. 

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Cloud Security Got you Down? 5 Things to Look for in Providers

Cloud computing has become the way of the world. Computers, mobile phones, wearable devices, and just about everything tech-related all seem to connect to the cloud now. But, when it comes to some company information, it is important to be careful about what is going into the cloud and who is controlling that cloud. This is especially true for contract management software.

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Tips for an Easy Transition to Cloud Contract Management Software

Deciding to transition to a paperless office and implementing cloud-based solutions to facilitate that may seem like an intimidating feat. However, regardless of where your business currently stands, there is no denying that cloud-based applications help to simplify countless business operations, and contract management is no exception.

Here is the why, what, when, and how of making the transition to the contract management cloud:

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Contracting for Startups

Starting a company is an exciting venture, but it can also be an overwhelming experience. There are so many details to consider and decisions to make, like those relating to the initial organizational documents, financial and accounting matters, and hiring.  The importance of contracting (and the resulting contract management) can also be an afterthought though warrants careful attention. 

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