NAME - AVISEK MUKHERJEE

DEPARTMENT – CIVIL ENGINEERING

UNIVERSITY ROLL NO. – 10501320060
CLASS ROLL NO. – 31
SEMESTER – 8th SEMESTER
SUBJECT NAME – PROFESSIONAL PRACTICE, LAW & ETHICS
SUBJECT CODE – CE(HS)801
TOPIC NAME – CONTRACTS MANAGEMENT
 CONTRACTS MANAGEMENT

EXECUTIVE SUMMARY

• What is contract management, and why is it important.

• Elements of successful contract management.
• What are the stages of the contract management process.

2
 INDEX

SL.
CONTENTS PAGE NO.
NO.

1 Introduction to Contracts Management 4

2 Elements of Contracts Management 4

3 Stages of the Contracts Management 4

4 Conclusion 5

5 Reference 5

3
Introduction to Contracts Management
Contract management is the process of managing contract creation, execution, and analysis
to maximize operational and financial performance at an organization, all while reducing
financial risk. Organizations encounter an ever-increasing amount of pressure to reduce
costs and improve company performance. Contract management proves to be a very time-
consuming element of business, which facilitates the need for an effective and automated
contract management system.

The fundamentals of contract management

When two companies wish to do business with each other, a contract specifies the activities
entered into by both organizations and the terms through which they will each fulfill their
parts of the agreement. Contracts affect business profitability in a very large way due to the
emphasis on revenue and expenses.

Elements of successful contract management

It isn’t enough that an organization has professionals in place to handle contract management.
Employees must be augmented with the presence of processes and software companions to
satisfy increasing compliance and analytical needs. When a contract management strategy is
successfully implemented, organizations can expect to see:

• The expected business benefits and financial returns are being realized.
• The supplier is cooperative and responsive to the organization’s needs.
• The organization encounters no contract disputes or surprises.
• The delivery of services is satisfactory to both parties.

What are the stages of the contract management process?

While there are many components of contract management, we can summarize the process
by breaking it into five clear stages: creation, collaboration, signing, tracking and renewal.

Creation Tracking
1. Initial requests 6. Obligation management
2. Authoring contracts 7. Revisions and amendments
Collaboration 8. Auditing and reporting
3. Negotiating the contract Renewal
Signing 9. Renewing
4. Approving the contract
5. Execution of the contract

4
Conclusion
Managing contracts is an overlooked form of management. Managers interact frequently
with employees, and some of those discussions and situations naturally relate to
compensation. Some of these conversations will deal with contract management. Other times,
businesses need to manage contract agreements with other businesses. It’s not talked about
much, but contract management is an important business topic.

Reference

• https://www.businessnewsdaily.com/4813-contract-management.html
• https://www.medius.com/glossary/what-is-contract-management/
• https://www.jaggaer.com/blog/what-is-contract-management/
• https://en.wikipedia.org/wiki/Contract_management