Contract Management For Procurement In Houston
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Contract management software makes creating a contract easy and automated. Contract management software also known as contract lifecycle management, wires automation into the contract management process.
Solid procurement contracts include payment dates and terms, outline performance control measures, and discuss what should happen in the event of a dispute between the two parties.
However, these two critical departments may not always be on the same page due to their unique goals. While contract managers are concerned with making sure contracts are approved by their legal team, procurement specialists are more concerned with acquiring products/services efficiently.
The Stages of Contract Management This may involve: co-ordinating communication between the current and new supplier; providing information; planning. The normal working period of the contract. This may involve solving any issues that may arise e.g. supply problems.
The terms procurement, purchasing, sourcing and supply chain are often used interchangeably. However, there are important distinctions between them.
To recap, procurement is the process of acquiring the supplies you need to run your business operations. On the other hand, supply chain management encompasses how those supplies are transformed into finished products and delivered to the end-users.
The seven essential elements of a contract are: Offer. Acceptance. Consideration. Legally competent parties. Meeting of the minds. Terms of the contract. Legality of purpose.
Contract Management is concerned with the continuous review and management of the contractual terms and/or service level agreement secured through the procurement process to ensure suppliers and partners deliver the outcomes agreed.
The basic elements required for the agreement to be a legally enforceable contract are: mutual assent , expressed by a valid offer and acceptance ; adequate consideration ; capacity ; and legality .
Contract lifecycle management for each agreement consists of seven high-level stages: Inception: Identifying Contract Requirements and Stakeholders. Contract Negotiation: Drafting and Agreeing on Terms. Execution: Signing and Finalising Agreements. Start-Up: Extracting and Documenting Contract Metadata.
