4 Things Every Contract Manager Should Know

Contract managers are one of the moving parts of successful business partnerships

Contract managers are one of the moving parts of successful business partnerships. They are responsible for overseeing the entire contract management process. Without a competent one, witnessing a fruitful partnership after the expiry of an agreement can be slim to none.

If you are searching for the right contract manager, there are various things they should know if they are to significantly increase the chances of a successful contract.

In this article, we will discuss the things that every contract manager should know, which will help you craft the right questions to ask during an interview. The guide will also help aspiring contract managers know what they need to know to improve their chances of getting hired and being successful in their careers.

Let us dive into details.

1. Contract Management Software Knowledge is A Must-Have

The world is quickly evolving, with digitization taking over. For companies, these changes have seeped into every aspect of business processes, including contract management.

The number of companies using cabinets and other storage equipment to store large piles of written agreements is significantly going down. That method of storage was time consuming and tasking, to say the least.

For these reasons, developers built contract management software to ease the headaches associated with manually handling thousands of contracts.

https://www.contractsafe.com/ is one such contract management platform that stores thousands of contracts on a single repository. That way, it makes it easy to manage all contracts.

For instance, you can use the search tool to find a contract within seconds. Even if you do not remember the contract’s name, you can simply key in any text or sets of numbers written in the agreement, and the software will sift through the plethora of contracts, finding the specific one you want in a matter of seconds.

Furthermore, the application has a reminder feature that allows you to set alerts for important dates and events in relation to each contract. That way, you can say goodbye to missed deadlines and other inconveniences that may hurt the partnership.

So, a contract manager with contract management software knowledge is an asset as they will leverage these and other functionalities of the application to streamline processes.

2. Drafting and Executing Contracts

Drafting contracts is a sensitive project. Many companies, especially those entering into partnerships with other renowned organizations, will often outsource contract drafting to companies that specialize in that. The reason is, corporate partnerships are complex, and drafting the intricate details of the contract needs a large team.

However, that doesn’t mean that a contract manager can get away with a lack of contract drafting knowledge.

Sometimes, a company may need to draft a simple or urgent contract. Also, start-up businesses operating on a shoestring budget, for instance, may not have the adequate financial muscle to outsource such tasks.

As such, the contract manager you hire should have adequate knowledge on how to go about the process from the drafting to the execution stages. They should also understand how to write clauses, among other things.

Additionally, contract managers should comprehend boilerplate language and legal jargon and know how to use them appropriately. That way, you can rest assured of a professional contract.

3. Your Business Processes

No two businesses are the same.

Even for businesses that sell the same products, each company has practices and processes that are unique to them.

For an efficient contract management process, the project manager you choose should understand the ins and outs of your business. They should know all the processes, the supply chain management, safety protocols, and many more.

Fully comprehending the business comes with its benefits.

Take an example of a large company with a couple of departments. When drafting agreements, a contract manager needs to write them with a clear understanding of each department's processes. The IT, HR, and the finance department, for instance, will need contracts unique to the services they offer. So, hiring a contract manager who understands your scope of business allows the company to have contracts that align with its goals and objectives.

4. Conducting Compliance Reviews

The government and other regulatory bodies are regularly reviewing compliance requirements. These Federal and State requirements are put in place to safeguard the interest of companies, the safety of their employees, and consumers.

Failing to comply with these regulations can result in hefty fines and in the worst-case scenario, have the operating license revoked.

For these reasons, it is vital to hire a contract manager who understands contract compliance requirements and knows how to conduct reviews. They have to pro-actively track compliance to these laws and to the contract itself. Meaning, they should also be keen on ensuring all parties are operating as required. That way, they protect the business against risks that may be detrimental to the partnership or the company’s longevity.