Effective Contract Management Essay

Sarah states that advanced bless focussing is to prevent the high cost of the make out penalty clause, should dictate severally move made with a promise entity. Part of effective contract management is developing comprehensive grooming programs that inform employees of the benefits of following the price of the contract. For example, purchasing employees at Sarahs society are informed of the motley ports that an promise with a vender can benefit the political party to save money. Without this reporting, the two side of meats have no way of monitoring the benefits of the agreement and developing any changes to make when the agreement comes up for renewal. Effective reporting also keeps track quantities that help twain sides monitor their usage and determine when contract limits may have been met. Sarahs company relies on contracts with suppliers to keep her business running efficiently. Shippers, vendors, and financial institutions etcetera all require a high level o f contract management to maintain efficient relationships with all of them. Understanding the effect of a good contract administration is essential in business making decisions that would maximise revenues and minimize risks.A contract is drawn up to create the guidelines for a business relationship. When parties abide by the name of a contract, the company gains from the benefits that it has to offer. save poor contract administration can cause businesses to violate terms of the contract, which can lead to penalties, fines and a potential lawsuit. Good contract management is to prevent the high cost of the contract penalty clause, should dictate each move made with a contracted entity. Part of effective contract management is developing comprehensive training programs that inform employees of the benefits of following the terms of the contract. For example, in my company the purchasing people are informed of the various ways that an agreement with a vendor can benefit the compan y and how it will save the company money. Without this reporting, the two sides have no way of monitoring the benefits of the agreement and developing any changes to make when the agreement comes up for renewal. Effective reporting also keeps track of quantities that help each side monitor their usage and determine when contract limits may have been met.