Contract Management For Procurement In Maryland
Description
Form popularity
FAQ
A: The role of a contract manager in procurement is to oversee and manage the contractual agreements between the organisation and its suppliers. They ensure compliance, mitigate risks and monitor the performance and fulfilment of contractual obligations.
Procurement management focuses on securing favorable terms and contracts while contract management ensures the delivery of promised value throughout the contract's lifecycle.
The contract procurement process refers to a series of steps and procedures undertaken by a business or an organization when purchasing products and services. Procurement is a crucial function as it helps organizations acquire the resources (products, goods, services, etc.) they need to operate fluidly.
The key stages of the contract management process in procurement include: Pre-award stage. Contract drafting and negotiation. Contract execution and implementation.
Contracts and Procurement's sourcing concentrate on direct products and solutions, while Procurement focuses on indirect items and services. In larger companies, these agreements are usually developed by a legal or contract monitoring team, bypassing Procurement.
Your finance team plays a crucial role in contract management, as they manage all the financial aspects of your company's contracts. From budgeting to invoicing, they're focused on avoiding financial risk and dips in revenue.
Contract management is an integral part of any procurement cycle.
How to implement contract management activities Step 1: Transition activities, if any. Step 2: Review the draft contract management plan. Step 3: Review the contract's budget. Step 4: Resources to support contract management. Step 5: Finalise and implement the contract management plan.
Most Commonly: The Finance Team. This is the most common way of handling contract management in small companies. Typically the finance department is responsible for collecting contracts from vendors and customers, making sure that they are filled out correctly, and that they are filed appropriately.
Ultimately, the administration of a contract is the responsibility of the contracting officer who is the only person who may modify the contract or take action to enter into or change a contractual commitment on behalf of the U.S. Government.
