are the one of the most important aspects of a business or other entity. The contract establishes the applicable
warranty, indemnifications, limitation of liability, scope of work, schedule, period of performance, terms and conditions,
prices, requirements, references, specifications, assumptions, service levels, tasks, deliverables, reporting, and
other provisions governing a contractual relationship. Today, many companies and other entities are requiring proactive
contracts management for improved contractual visibility, efficiency, economics, risk minimization, control, and
Contracts management (according to CMBOK 3rd Edition) is the process of managing contracts,
deliverables, deadlines, and contracts terms and conditions while ensuring customer satisfaction. It does not end
when the contract is awarded. Contracts management is a mature profession, but still growing. It covers pre-award,
award, and post-award. CMBOK 3rd Edition indicates (to some extent) that contracts management also includes certain
specialized knowledge areas (R&D, A&E/Construction, IT, Major Systems, Services, International, State/Local,
Supply Chain, PBA, Government Property, Security, Environmental, FMS) and certain business areas (Management, Marketing,
Financial Analysis, Accounting, Budgeting, Economics, Leadership).
. NCMA describes “Contracts Management” as follows: Contracts management is
a profession that includes many positions along the buying and selling chain, including jobs within the federal
government, industry, commercial businesses, academia, and more. Contracts management professionals strive to: (1)
Manage customer and supplier expectations and relationships, (2) Control risk and cost, and (3)
Contribute to organizational success. Contracts management integrates a broad set of business disciplines and involves
working closely with all areas and departments within an organization.
management involves the proactive management of a wide variety of commercial, international, government, collaborative,
consortial, relationship, and other agreements in accordance with best practices, applicable entity policies
and procedures, compliance programs, applicable laws, and the other requirements of the parties. It generally encompasses
contract planning, contract designing, contract drafting, contract negotiation, contract modification, contract
administration, use of best practices, contract close-out, contract assessment, lessons learned activities, and
other similar items.
Contracts management can help to improve contractual performance, reduce contractual
risk, improve customer/provider satisfaction, and enhance the contractual economics for the following types
of entities: (1) sellers of products; (2) purchasers of products; (3) services providers; (4) purchasers
of services; (5) licensors or licensees of software, technology, and processes; and (6) the parties to other
types of agreements.
For example, here are just some of the types of contracts that are appropriate
for professional contract management by reviewing, analyzing, red-lining, planning, designing, drafting,
executing, amending, administering, applying best practices, closing-out, terminating, and assessing/score-carding:
(1) For the Seller - - One-way & bilateral NDAs; teaming agreements; binding & non-binding
letters of intent; memorandums of agreement/understanding; joint cooperation agreements; strategic alliance agreements,
partnering agreements; services agreements; consulting agreements; environmental services agreements, business
process outsourcing agreements; IT outsourcing agreements; products agreements; master agreements with
individual work orders; statements of work; seller's terms & conditions of sale; assignment agreements;
(2) For the Buyer - - One-way & bilateral NDAs; teaming agreements; binding
& non-binding letters of intent; memorandums of agreement/understanding, joint cooperation agreements; strategic
alliance agreements; partnering agreements, services agreements; consulting agreements; products agreements; master
agreements with individual work orders; statements of work; buyer's terms & conditions of purchase;
assignment agreements; subcontracts; sourcing documents; requests for information/quotes/proposals; and preferred
provider partnering programs/agreements.
(3) For the [Software] Licensor - - One-way & bilateral
NDAs; beta test agreements; evaluation agreements; end user agreements; shrink wrap/click wrap agreements;
pure reseller agreements; integrator agreements; value added reseller agreements; OEM agreements; ASP/SaaS agreements;
support agreements; maintenance agreements; training agreements; software consulting services agreements; lease of
a license agreements; source code license agreements; escrow agreements; technology transfer agreements; and patent/know-how
(4) For the [Software] Licensee - - One-way & bilateral NDAs; beta test
agreements; evaluation agreements; end user agreements; shrink wrap/click wrap agreements; pure reseller agreements;
integrator agreements; value added reseller agreements; OEM agreements; ASP/SaaS agreements; support agreements;
maintenance agreements; training agreements; software consulting services agreements; lease of a license agreements;
source code license agreements; escrow agreements; technology transfer agreements; and patent/know-how licenses.
(5) Any other type of Agreement.
Effective contracts management needs to have the following four
foundational aspects: (1) centralized storage; (2) controlled access; (3) automated notifications; and (4)
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