Contract management oversees agreements from creation to execution, ensuring all parties fulfill their obligations while maximizing financial and operational performance and minimizing risk. It includes negotiating terms, ensuring compliance, and documenting changes during implementation. Effective contract management aligns agreements with business goals, enhances compliance, and improves operational efficiency. Key aspects of contract management are:
Lifecycle Stages:
Contract management spans the entire contract lifecycle, including pre-contract, execution, and post-award phases.
Activities:
Core activities include authoring, negotiation, baseline management, communication, and ensuring contract visibility and compliance.
Responsibilities:
Contract managers draft, review, store, and organize contracts, ensuring documents reach the right people at the right time. They also manage risks and track progress.
Contract management is crucial due to the complexity and detailed technical specifications often involved. It ensures that all parties adhere to the terms, manages risks, tracks progress, and facilitates smooth execution. Standard contract forms specify who should be appointed as a contract manager. For example, under the ICE conditions of the contract, the Employer has to appoint an engineer to design the Works Orders, supervise the carrying out of the Works, and generally administer the contract.