The importance of contract management & negotiations

Organisations in both the public and private sectors are facing increasing pressure to reduce costs and improve financial and operational performance. New regulatory requirements, globalisation, increases in contract volumes and complexity have resulted in an increasing recognition of the importance and benefits of effective contract management.

The growing recognition of the need to automate and improve contractual processes and satisfy increasing compliance and analytical needs has also led to an increase in the adoption of more formal and structured contract management procedures.

It is worthwhile noting that contract management is successful if:

• Your expected business benefits and value for money are being achieved
• Your supplier is co-operative and responsive
• Your organisation understands its obligations under the contract
• Your organisation has no surprises therefore reducing disputes
• Your organisation has processes in place for a professional and objective debate over changes and any issues arising.
• Your organisations efficiencies are being realised.