By Analytix Editorial Team
Contract management systems are a vital component of startups and small businesses. A contract management system reduces the dependence on manpower and is an ideal set-up where staff is limited and dedicating a resource to manage contracts alone is near impossible.
Why have contract management at all?
Contract management is all about defining the terms and conditions of contracts clearly, documenting them, carrying out negotiations and keeping track of any changes to existing contracts. If not managed well, contracts can quickly escalate into a chaotic situation involving missed deadlines and ultimately both business and money loss. Breaches in contracts are also a breach in the trust invested into the project execution by both parties.
For a startup, or even a small business, it is common to carry out contract management as part of other duties being multi-tasked. However, this can lead to a lack of clarity on the project objectives and obligations.
Instead, a robust contract management system offers more advantages for less cost than a dedicated human resource assigned to the task would.
What does contract management involve?
Typically, contract management systems involve keeping track of elements related to the contract at hand. Apart from tracking and documenting invoices, orders, etc., all specifications of the contract, including project execution details and even technical details and terms and conditions, are noted by the contract management system. Other details can include assessment of risks, possible hindrances to the project, details of financing, etc.
Usually, contract management deals with a huge quantum of data, leading to a process that is time consuming and detail-oriented. But when taken over by a system designed for it, contract management can take care of the data, including details of the implementation of the contract.
An ideal contract management system includes, among other elements:
At Analytix, the commitment to aiding startups extends to enhancing existing efficiencies in everyday operations as well. Our new Contract Management System helps businesses manage not only their contracts and projects better, but also ensure stronger and better business relationships based on trust and confidence.