If you are a business owner or manager, understanding the ins and outs of contract administration is essential for success. Planning and executing contracts properly can help you avoid making costly mistakes.
New to the process of contract management and administration? This article will discuss the essentials of contract administration and how you can execute contracts like a pro. So, let’s get started!
What Is Contract Administration?
By simple definition, contract administration entails the process of planning, creating, and executing contracts. It is often confused with contract management, which is more focused on implementing the contract after it has been finalized. Contract administration happens before any agreement is finalized and signed between parties.
A comprehensive contract administration process is essential for businesses of all sizes. It helps to protect all parties involved, reduce risks, and ensure that contracts are executed successfully.
The Importance of Effective Contract Administration
Contract administration is an essential part of any business transaction. It ensures that the parties involved clearly understand their rights and responsibilities throughout the contract’s duration. Properly administered contracts also help to protect all parties from potential disputes arising from unclear or vague language.
Contracts are used for a variety of purposes. This includes buying and selling goods, leasing property, entering into employment agreements or partnerships, and other business relationships. It’s crucial for each party to know their expectations and how their performance will be evaluated.
Tips for Managing the Execution of a Contract
Several steps must be taken to ensure that the process runs smoothly. Here are some tips to help you manage and oversee the execution of a contract:
- Make sure the contract is clear and well-drafted. Before signing off on any contract, ensure that both parties agree on all terms and conditions. The contract should be clear and concise without any ambiguities.
- Monitor deadlines and performance expectations. It’s important to keep track of deadlines and other performance expectations to ensure that the contract is being properly executed.
- Track changes to the contract. Over time, the terms of the contract may need to be amended due to changing circumstances. Make sure to document all changes so that everyone will be up-to-date regarding the current terms of the agreement.
- Develop a dispute resolution plan. Even with the best planning, issues can arise when executing a contract. Having a dispute resolution plan in place can help to quickly address any problems that may come about.
- Communicate regularly. Regular communication between the parties is essential for successful contract execution. Make sure to establish an effective method of communication, such as phone calls, emails, or video conferences. This is to keep everyone on the same page throughout the contract.
The Benefits of a Strong Contract Administration Process
Having a strong contract administration process in place can make all the difference in the success of a business. A well-run contract administration process helps to ensure that all parties involved are protected.
Furthermore, it helps:
- Identify any potential problems and can act as a roadmap to resolve them quickly and efficiently.
- Improve the timeliness of contract delivery and reduce expenses by ensuring that all parties are held accountable.
- Build trust between parties by creating a common set of expectations and guidelines for the entire duration of the contract.
- Provide greater visibility, transparency, and contract oversight into the entire lifecycle of a contract.
Best Practices When Managing Changes to the Contract
Changes to contracts are often necessary and can be difficult to navigate. It is important to have a system to handle these changes efficiently and effectively. Here are some best practices and considerations when managing changes to a contract:
- Establish a procedure for how changes will be requested, evaluated, and approved. All parties involved should document and clearly communicate this process.
- Make sure that all proposed changes are thoroughly discussed and reviewed by all parties before being implemented.
- Ensure that any agreed-upon changes are documented in writing and signed off on by both parties.
- Carefully consider the implications of the change. Is it in the best interests of both parties? Will it impact other parts of the contract?
- Pay close attention to deadlines associated with the change. Be aware of the potential for time-sensitive consequences if the change is not approved in a timely manner.
- Remain open to compromise when it comes to making changes. Some modifications may require negotiation in order to reach an agreeable solution.
- Consider using an electronic signature solution to sign documents. Ensure security by doing this before and after any changes have been made. eSignature tools such as Fill are your partner to securely administer contracts.
Fill: A Seamless eSignature Tool for Contract Administration
Signing contracts has never been this easy with Fill, an eSignature solution for paperless contract signing. With Fill, you can sign contracts in seconds while being assured that they’re tamper-proof and legally binding.
Aside from effortlessly signing contracts, Fill also boasts the following features:
- Free templates for contract management
- Real-time audit trails and logs
- A secure cloud-based storage
- Compliance with HIPAA, GLBA, and GDPR
- 256-bit end-to-end encryption
- Instant alerts and email notifications
Ready to scale up your business with our seamless eSignature solution?
Administer contracts efficiently using Fill. Sign up for free today.
