Top 10 Pitfalls in Contract Management: Part 1

1. Lack of Clarity

One of the biggest difficulties in contract management is the lack of clarity and scope on the goals or agreements both parties are entering into. Without clear objectives, contracts become daunting and can lead to premature signing. Concord Worldwide offers a service that provides both parties with a summary of the main services and conditions outlined in the contract. With this service, it makes reviewing a contract quicker and optimizes communication between both parties, therefore preventing the opportunity for a claim or dispute to be opened.

2. Level of Involvement

The second largest pitfall of contract management is the level of involvement of each party. In order to decrease extended lead times and wrongful forms of contract, Concord allows the party drafting the document to privately invite the other involved persons to edit or review the contract before it is executed. Within the bounds of Concord’s privacy policy, both parties have the ability to view and edit the document within their means before it is signed and deemed legally binding. This feature prevents potential disagreement and the drafting of an inappropriate contract.

3. Failure to Engage

The third big source of problems in contract management is the failure to engage all stakeholders in the process. This is an issue specifically in public sector contracts as the people affected by the contract are numerous. Again, Concord allows the drafter of the contract to involve all appropriate parties in the reviewing process. This prevents misaligned interests between the parties and helps hinder future opposition between those involved.

4. Protracted Negotiations

The fourth complication of contract management is protracted negotiations. Difficulty or miscommunication in the creation process ushers in delayed revenues, extended lead times, competitive exposure and the potential loss of money for both companies. To thwart frustration, missed opportunities or rushed negotiations between parties, Concord’s upgraded service allows for both parties involved to track the other’s involvement in the process. Each person has the ability to view the edits made by a specific party and also to comment on a particular section of the contract to offer alternate terms or wording. Concord’s online contract management systems helps facilitate the editing and reviewing process to prevent any opportunity for any disorder.

5. Focus on the Wrong Terms and Risks

The fifth pitfall occurs when both parties focus on the wrong terms and risks in a contract. With Concord’s online management system, companies can create and import their contracts and edit them directly online. The high involvement level allows companies to focus on aspects of the contract that may present a risk to either party and subsequently alter them before they are executed. This prevents loss of economic benefit and the creation of a contract that can potentially do harm to a company.

To learn more, fill out the form on this page to chat with one of our contract management specialists, or call us at 844-693-7446.

 

CLICK HERE for part 2