Looking for the best ways on how to manage contracts? Look no more, for we got you covered!
Are you one of the start-up companies that’s seeking for the best way on how to manage contracts? Then we should be able to help you with that. Managing contracts is as easy as 123 if you know the way on how to effectively manage them. Always remember that having a successful contract signing shall benefit you and the other party as well, for it shall straighten out the things that make both parties different.
So without further ado, here are the most effective way on how to manage contracts.
- Give a considerable amount of time in reviewing and initiating the contract
- By doing so, it shall help both parties to edit the whole contract in a such a way that shall benefit both of them. Unnecessaries should be deleted, deliverables should be included, and penalties may be added if one doesn’t deliver something in a specific timeframe.
- Performance during contract agreements should be authorized
- Whenever probable, a definitive agreement should be signed prior to the effective date of the relationship it memorializes. Both parties may lose bargaining power by conducting business without a signed contract, and such a course of action may increase the likelihood of misunderstandings and disputes between the parties.
- Managing the contract effectively
- All contracts should be accredited to a contract manager, who may or may not be the contract drafter or the signature authority. The contract manager is the official accountable for tracking and performing the execution of the contract and addressing any other issues that arise under the contract.
- Things that an effective contract contains:
- A copy of the final, fully-executed contract.
- All changes (including change orders and work orders) to the agreement should be formally executed in accordance with the terms of the contract and attached to the agreement.
- All correspondence or other documents related to the contract. If there are performance problems with the contract, the problems should be documented in memos to the file or in correspondence to the vendor.
- All certificates of insurance should be kept in the file.
- A diary or tickler “compliance” file should be established to keep all certificates of insurance up to date, verify timely performance if time is of the essence to the agreement, and to allow timely renewal, if applicable, of the agreement.
- Any extensions to the agreement should be formally executed in accordance with the terms of the agreement and attached to the agreement.