Guide to Contract Management
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The document is a guide to management contracts, outlining essential principles and practices for effective contract administration. Key topics include metadata tracking, automated alerts, continuous management of contract lifecycles, and compliance with legal requirements. It emphasizes the importance of centralizing contract data and customizing reports to enhance risk management and operational efficiency.
Guide to Contract Management
- 1. Guide to Management Contract Berkman | Solutions ! 10260 SW Greenburg Road, 4th floor Portland OR 97223 United States ! 1 (855) 517-2193 North America +1 (503) 517-4293 Worldwide www.BerkmanSolutions.com [email protected]
- 3. ! Simplicity 1 before complexity "
- 4. Metada1ta tracking Alert automation Routine reports
- 5. ! Data 2 with documents "
- 6. All cont2ract data All documents One location
- 7. ! Custom 3 over canned "
- 8. Your labels Your fields 3 Your reports Your alerts
- 9. ! Alerts 4 not notes "
- 10. Automa4tic alerts Tailored rules Global & specific
- 11. ! Reports 5 not files "
- 12. Access5 all data Custom layout Scheduled reports
- 13. Basic metadata #
- 14. Title Start date The title of the contract is usually at the top of the agreement Either the effective date or the execution date of the contract Type of contract End date 5 — 15 contract categories are critical for reporting and analysis The date the contract expires, unless it is evergreen Description Notice date A short summary of the contract’s purpose, without repeating other data For auto-renewal contracts, the date notice is due to prevent renewal Party Business unit The legal name of your organization, whether parent, subsidiary, or affiliate The internal department or division that the contract benefits Counterparty Responsible person The other party to the contract The business person with direct responsibility for the relationship
- 16. Lifecycle Tasks The history of the agreement based on every major stage The activity to preserve rights, to meet obligations, or to provide information New contract Audit The start of the contractual relationship Conduct or respond to an audit pursuant to the contract Each amendment Certificate An amendment is a significant event, even if the change is small Obtain or provide insurance certificates or performance bonds Approvals Report Each internal approval is a lifecycle event for the contract Provide or receive reports to internal constituents or to the counterparty Review Review an aspect of the contract or the counterparty
- 18. Assets Terms The subject of a contract, such as a building or intellectual property The distinct transactions described in the contract Title Summary A short title for tracking the asset and related reports A short title and categorization: (income v. expense; asset v. liability) Categories Payment type Accounts receivable, equipment, inventory, real estate, etc. Categorize transactions: fixed price, reimbursement, incentive, time, etc. Description Timing Summary information: asset ID, value, owner, rights holder Payments are contingent, one-time, or recurring (+ the frequency) Location Amount The place where the asset is located or the identification method The amount for each transaction in the contract
- 19. ! Example Company A (the party) sells (financial term 1) a piece of industrial equipment (the asset) to Company B (the counterparty) for $1,000,000 (financial amount). Company B leases (financial term 2) the equipment back to Company A for 12 months for 12 equal payments of $100,000 (financial amount). "
- 20. Legal & compliance &
- 21. Legal Compliance The important provisions as a matter of policy or for the specific deal The obligations from external sources, often federal, state, or local law Summary Summary Provision number and title in the contract A short title and categorization of the regulatory or compliance issue Categories Reference Performance, condition, assignment, covenant, condition, etc. Maintain inventory of regulatory requirements for easy reference Obligation type Risk type Performance obligations either require, permit, or prohibit action Breach of contract, civil damages, criminal liability, injunction, etc. Text Review Isolate the text of the specific provision for easy reference Record the results of periodic compliance reviews of contracts
- 23. Sched(ule notices for key dates
- 24. Notify) 30 days before expiration
- 26. Reports + & analysis
- 27. Desig,n once. Reuse many times
- 31. ! Contract management is risk management "
- 32. Guide to Management Contract Berkman | Solutions ! 10260 SW Greenburg Road, 4th floor Portland OR 97223 United States ! 1 (855) 517-2193 North America +1 (503) 517-4293 Worldwide www.BerkmanSolutions.com [email protected]