Contract life cycle management is the process of systematically and efficiently managing contract creation, execution and analysis for maximising operational and financial performance and minimising risk.
Importance of contract management
The growing recognition of the need to automate and improve contractual processes and satisfy increasing compliance and analytical needs has also led to an increase in the adoption of more formal and structured contract management procedures and an increase in the availability of software applications designed to address these needs. contract management would be regarded as successful if:
- the arrangements for service delivery continue to be satisfactory to both parties, and the expected business benefits and value for money are being realised
- the expected business benefits and value for money are being achieved
- the supplier is co-operative and responsive
- the organisation understands its obligations under the contract
- there are no disputes
- there are no surprises
- a professional and objective debate over changes and issues arising can behad
- efficiencies are being realised.
References
Elsey, R.D. (2007). Contract management guide. The Chartered Institute of Purchasing & supply.
CIPS (2005). Contract management: A range of practical guides and toolkits – Office of Government Commerce Corporate Social Responsibility.
