guide to contract management
DESCRIPTION
In less than 30 minutes, this Guide to Contract Management clarifies how to manage contracts. Follow practical steps to control contract risk and improve financial performance. The Guide provides specific recommendations about what contract data to track. Learn about the 5 principles of contract management. These principles elevate contract management from an administrative burden to a vital risk management function.TRANSCRIPT
![Page 1: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/1.jpg)
ManagementContractGuide to
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]
![Page 2: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/2.jpg)
5General principles
![Page 3: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/3.jpg)
1!
"
Simplicity before complexity
![Page 4: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/4.jpg)
1Metadata tracking
Alert automation
Routine reports
![Page 5: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/5.jpg)
2!
Data with documents
"
![Page 6: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/6.jpg)
2All contract data
All documents
One location
![Page 7: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/7.jpg)
3!Custom over canned
"
![Page 8: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/8.jpg)
3Your labels
Your fields
Your reports
Your alerts
![Page 9: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/9.jpg)
4!
Alerts not notes
"
![Page 10: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/10.jpg)
4Automatic alerts
Tailored rules
Global & specific
![Page 11: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/11.jpg)
5!
Reports not files
"
![Page 12: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/12.jpg)
5Access all data
Custom layout
Scheduled reports
![Page 13: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/13.jpg)
#Basic metadata
![Page 14: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/14.jpg)
Title Start dateThe 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 date5 — 15 contract categories are critical for reporting and analysis
The date the contract expires, unless it is evergreen
Description Notice dateA 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 unitThe legal name of your organization, whether parent, subsidiary, or affiliate
The internal department or division that the contract benefits
Counterparty Responsible personThe other party to the contract The business person with direct
responsibility for the relationship
![Page 15: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/15.jpg)
$Continuous management
![Page 16: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/16.jpg)
Lifecycle TasksThe history of the agreement based on every major stage
The activity to preserve rights, to meet obligations, or to provide information
New contract AuditThe start of the contractual relationship
Conduct or respond to an audit pursuant to the contract
Each amendment CertificateAn amendment is a significant event, even if the change is small
Obtain or provide insurance certificates or performance bonds
Approvals ReportEach internal approval is a lifecycle event for the contract
Provide or receive reports to internal constituents or to the counterparty
ReviewReview an aspect of the contract or the counterparty
![Page 17: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/17.jpg)
%Financial management
![Page 18: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/18.jpg)
Assets TermsThe subject of a contract, such as a building or intellectual property
The distinct transactions described in the contract
Title SummaryA short title for tracking the asset and related reports
A short title and categorization: (income v. expense; asset v. liability)
Categories Payment typeAccounts receivable, equipment, inventory, real estate, etc.
Categorize transactions: fixed price, reimbursement, incentive, time, etc.
Description TimingSummary information: asset ID, value, owner, rights holder
Payments are contingent, one-time, or recurring (+ the frequency)
Location AmountThe place where the asset is located or the identification method
The amount for each transaction in the contract
![Page 19: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/19.jpg)
! 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).
"
![Page 20: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/20.jpg)
&Legal & compliance
![Page 21: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/21.jpg)
Legal ComplianceThe important provisions as a matter of policy or for the specific deal
The obligations from external sources, often federal, state, or local law
Summary SummaryProvision number and title in the contract
A short title and categorization of the regulatory or compliance issue
Categories ReferencePerformance, condition, assignment, covenant, condition, etc.
Maintain inventory of regulatory requirements for easy reference
Obligation type Risk typePerformance obligations either require, permit, or prohibit action
Breach of contract, civil damages, criminal liability, injunction, etc.
Text ReviewIsolate the text of the specific provision for easy reference
Record the results of periodic compliance reviews of contracts
![Page 22: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/22.jpg)
'Automated notification
![Page 23: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/23.jpg)
(Schedule notices for key dates
![Page 24: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/24.jpg)
)Notify 30 days before expiration
![Page 25: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/25.jpg)
*Notify before auto-renewal
![Page 26: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/26.jpg)
+Reports & analysis
![Page 27: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/27.jpg)
,Design once. Reuse many times
![Page 28: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/28.jpg)
-Contract list report
![Page 29: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/29.jpg)
-Contract portfolio report
![Page 30: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/30.jpg)
*Schedule automated distribution
![Page 31: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/31.jpg)
!Contract management is risk management
"
![Page 32: Guide to Contract Management](https://reader034.vdocument.in/reader034/viewer/2022051209/54898057b47959ec0c8b599f/html5/thumbnails/32.jpg)
ManagementContractGuide to
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]