When a company does not manage its contracts appropriately, it can experience a host of different problems. These problems can include the loss of clients and the loss of sales. Contract management is not a difficult concept. You just need to ensure that the right person is in charge of managing the contracts your company signs so the proper oversight is provided.
All companies should have a contract management plan in place. The plan needs to be comprehensive and set forth a system for managing the contracts your company signs and uses to operate on a daily basis. The plan also needs to cover how each department will manage its own contracts, report issues and work with the contract management team.
The person or department in charge of managing the contracts should put together a process so every employee handles contracts the same way. Companies that have employees handling contracts differently will run into problems down the road. A workflow must be specified, as well as who is to handle each step in the workflow, so that nothing important is skipped.
The people responsible for managing the contracts at your company should keep detailed records of every contract signed. This includes all addendums, changing in the contractual agreement and how renewals for service contracts are supposed to be handled. All start and end dates for every contract should also be recorded.
If your company has had difficulty with managing contracts to the point where disputes have occurred, an experienced business organization attorney in Orange County can provide the guidance your business needs.