Top 10 Pitfalls in Contract Management: Part 2

6. Lack of Flexibility

In contract management, the sixth largest problem is the lack of flexibility and efficient mechanisms for performance management. Rather than deal proactively with alterations to a contract, most of the time, parties wait until something goes wrong, resulting in blame to the other persons involved. Shifting to online contract management provides an open, transparent, and easy to use platform which helps facilitate a way to avoid this lack of flexibility. Concord provides a clear and user-friendly interface to draft, edit, and share the contracts each company drafts.

7. Misunderstanding

The seventh most common issue is misunderstanding of elements within contracts. Some common contracts are drafted by lawyers, for lawyers, becoming bogged down with jargon that is difficult for anyone without a legal degree to understand. About 90% of people associated with or involved in a contract have said it is difficult to comprehend the complexity of the contracts and the agreements made within them. Concord allows those involved or affected by the contract to participate clearly see the drafting and editing of the contract, make comments, and engage in a dialogue with the other parties that will be permanently attached to the contract. By working so closely with the contracts, each party can execute a drafting style and structure that makes sense to them. This ensures proper understanding of the agreements each party is entering into before they are signed.

8. Poor Handoffs

The next largest pitfall is poor handover from the team who drafts and manages the deal to the implementation team. Very often the party that receives the contract has no association with it prior to its application. The transparency provided by online contract management software enhances the ease with which information can be shared, allowing for an easy way to keep the implementation team involved from the beginning. This helps to guarantee the commitments and obligations being made are understood prior to its implementation.

9. Limited Resources

The ninth pitfall of contract management has been its limited use of technology, resulting in the loss of efficiency and quality in both performance and analysis. Concord Worldwide has completely eliminated that inefficiency by creating and offering an online contract management system where companies can upload or draft legal documents on an account and share those documents with any party involved. Concord follows specific legal procedures and privacy policies that increase the ability of a business to efficiently and swiftly manage contracts. This smooth online platform has eliminated the hassles and headaches.

10. Poor Governance and Post-Award Process

The final and culminating pitfall of contract management is poor governance and post-award processes. Previously there have been inadequate resources to maintain and follow up with the legal deals made within a contract. As it is imperative that agreements have been met and both parties collaborate effectively, online contract management technology is useful in its ability to ensure the mutually desired result. With cloud technology, each party involved in the contract process can receive updates on the status of a contract and any edits or comments made on it.

 

Online contract management technology eliminates the majority of these pitfalls as they offer a single place in which one can draft, negotiate, sign and execute their contracts. The management system is simple to use and promotes effective communication by all parties involved, thus inhibiting either person’s chance for risk or error.

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 1