A firm hires a contract manager to arrange and secure their respective agreements. The contract manager is connected with contract management.
To understand contract manager better, you have to know contract management first.
What is Contract Management?
Contract management is a procedure for handling agreements from the initial day until their completion. It includes reviewing each section of contracts throughout the entire period and verifying each party’s obligation fulfilment.
In the current era, contract management helps a company to stand out in a highly competitive industry. It uses management services driven by technology. Contract managers deal with negotiation, execution, and tracking of agreements.
What does a Contract Manager do?
A company is not required to perform the entire contract handling by itself. It connects with contract management platforms that work with updated management software, like CLM solutions. Based on this, the contract manager delivers work to the client company.
Roles and Responsibilities of a Contract Manager
- Drafts, tracks, updates, and reviews contracts according to different scales and verticals.
- Ensures crucial contract management services-
- By mitigating conflicts,
- Offering legal suggestions
- Renewing and reconstructing/ redrafting agreements.
- A contract manager accesses project performance records. Also, ensures work compliance with mentioned terms and conditions.
- It prepares and assembles reports on contractual work updates.
- Such managers review the current contract status of the agreement.
- It makes changes and revisions in contracts required according to shifted national legal regulations. Also, maintains both-ways of communication with internal and external stakeholders.
What are the Responsibilities of a Contract Manager?
A deal has a six-stage contract lifecycle. A contract manager maintains all the stages of this lifecycle. Let’s get through the primary tasks of a contract manager.
Stage 1: Contract creation
Generation of an automated version of the agreement. It involves all parties and their requirements.
Stage 2: Negotiation and collaboration
Contract requirements are negotiated. The deal fixes some do’s and don’ts. Each company’s terms and policies are reviewed during the agreement’s lifecycle.
Stage 3: Review and approval
The prepared agreement is sent to the involved parties. Each firm checks the contract and approves it likewise.
Stage 4: Administration and implementation
It includes e-signage by involved parties. Work is started, stepwise processes take place. Moreover, the contract manager begins monitoring the process.
Stage 5: Status management and renewal
Tracking the ongoing status of the contract. Renewal of contract period when required.
Stage 6: Reporting and tracking
It is the step that involves report formation. Work progress is tracked, based on which reporting is done.
Importance of a Contract Manager
Have a look into the following points to understand a contract manager’s benefits:
- It makes deals between companies and their partners collaborative. Several contracts can function simultaneously.
- Hiring a contract manager helps in cutting off manual work required for contracts. It saves time for companies.
- Using CLM software as a contract manager helps record a deal’s entire lifecycle. This triggers increased work visibility.
- CLM software tracks changes in legal terms. The involved parties easily get such information. Contract renewal takes place accordingly. Hence, it reduces the cost and risk of legal violations.
- Contract managers help companies to ease their workflow. Companies can use valid data in decision-making. This boosts the company’s reputation and performance.
How can a Contract Manager Help your Company?
A contract manager affects a firm’s operations and finances directly. Your company can earn better deals and ensure profitable projects. Contract management platforms like sirion.ai work through software. This enables efficient workflow and high maximum generation through deals.
Your company’s project take-up potential can grow. The firm can increase its collaboration potential. Contract management is now available in automated versions. This automacy is trendy as well as effective for companies.
Your firm can gain high contractual knowledge. Thus, your company can attain more future agreements. You can profitably encourage present and future partnerships.
Conclusion
Contract managers handle work agreements systematically. It maintains an active workflow for companies. Hiring a contract manager is one of the smartest decisions a firm can make for its success. Operating a business in 2025 requires upgrades. Thus, CLM software enables numerous operative encouragements.