Contract Performance Management
Performance Management is colloquial for a process that systematically ensures that contracts derive optimal value for the business during their lifetime. Critical decisions made by your business depend on the information that is residing in your executed contracts. Companies securely stash away important contracts, which instead should be their daily point of reference.
The most effective strategy for disputes prevention and promoting efficiency in your business is to understand your contractual obligations and the long-term risks of non-compliance.
As lawyers, the purpose of our services to minimize your legal risks. This purpose is the cornerstone on which all legal services are developed and delivered. Our Contract Performance Management advisory and support services aid in identifying, evaluating, and managing contractual rights and obligations. By starting with contract management, clients ease contract negotiations and contract creation; prevent disputes, and allow for effective risk management.
Implementing Contract Management
First, define the contract responsibilities. Who is in charge of the contract creation, the contract approval, the storage/archiving/reporting, renewal, and destruction of contracts?
Second, make it possible for stakeholders to identify and analyze the content of contracts. What are the different kinds of contracts used in your business, what are your standard conditions, and why? Do all players have a consistent understanding of the terms and deliverables of every contract?
“According to a survey conducted by The Global Contract Management Association, companies lose on average 20% of the value expected from a contract, 12% on hard leakage (e.g. invoicing errors and price adjustments), and 8% on soft leakage (eg. delivery failures, poor experience).”
- checklists and link to form agreements, a precedent bank.
- parameters of the company’s contract negotiation positions.
- playbooks track what the company finds acceptable.