Managing contracts seems like a difficult task when some files go missing while others are scattered all over a workplace. A contract manager needs to adopt certain critical principles to deliver more value to the project. A contract can be in the form of a document or a plethora of written paperwork explaining the contractual relationship. One of the many duties of a contract manager is to draft the agreement and other related materials. They have to come up with a checklist of the necessary steps so that the management process is not just written down but clearly outlined. As such, organizational skills are critical to the whole process.
Features of a Well-Organized Contract Repository
When dealing with voluminous records, data organization becomes a critical aspect of management. Contracts come with all sorts of appended documents, including charts, tables, glossaries, etc. Deadlines must not be missed, and every task must be completed in good time. Thus, a contract manager needs the right tools to keep up with the moving stages of the contract portfolio. Having Precisely contract management software is one of the best strategies to keep a close eye on what is happening in the company. Let’s see how this software helps to build an effective repository for a business contract.
Contract management software uses a digital classification system to develop a list of contracts that is neither too long nor too short. Traditionally, managers categorize contract types into ‘expenses’ and ‘revenue’ which are too simplistic, though functional. A scheme with a list of 30 major and minor contracts is unrealistic for most companies looking to perform effective reporting. The best range is five to 15, including such categories as:
- Business Development
- Equipment and Supplies
- Real Estate
Another classification method takes care of the documents that have to be managed, e.g., correspondence, agreement, invoices, addendum, amendment, license, work schedule, insurance certificate, letter of intent, MoU, purchase order, etc.
Each contract needs a database that can be accessed online. Thanks to Precisely solutions, businesses can store their files in safe cloud-based locations to save time and resources. There is no need for hard drives or scrambling for vulnerable file-sharing networks. Depending on the budget and specific company needs, Precisely creates a tailored solution with robust data security standards and allows access to multiple users.
Proper Naming Scheme
A digital contract repository provides a proper file naming strategy for every document that uploads into the system. Key stakeholders need to follow the designated naming method to save time when locating the records.
Once a company incorporates contract management software, it is good to keep tight rules regarding who should access what data. This minimizes confusion and the chances of contract information being misappropriated.