How is contracting used

The administration phase begins with the award of the contract. The COR does not have the authority to make any material changes to the contract.

Only the OFR contracting officer may approve changes to the contract, to include extending periods of performance. All correspondence or actions relating to the contract are maintained in the OFR contract file, to include final close out or termination documents.

Skip directly to site content Skip directly to page options Skip directly to A-Z link. Section Navigation. Facebook Twitter LinkedIn Syndicate. Contracting Process. Minus Related Pages. Phase I - Planning and Forecasting. To mitigate risk in contract management and create strategic relationships, contracts go through 7 stages of the contract lifecycle. Contract management has taken on a bigger role in day-to-day tasks. Obviously, this occurs as businesses work toward increasing productivity without increasing their employee numbers.

Having a comprehensive understanding of the contract management process minimizes time spent working on administrative tasks. Furthermore, you can maximize strategy to accelerate and automate the deal. Contracts are legally binding documents that should not be approached lightly.

Properly identifying the needs, reasons, and ultimate goals that require a contract makes any decisions down the line much easier. For example, the terms of agreement within a contract should address what happens if the client files for bankruptcy, goes out of business, or sells the company, along with any other contingencies that may arise. Another example is a contract of pricing terms for customers. One goal of this document is to financially protect the business in any scenario, and ensure payment once the tasks outlined in an agreement are complete.

Good contract management ensures that even if a business relationship is strong, each side obtains exactly what is in the contract. Consulting with in-house counsel or an attorney is wise, especially if there are any uncertainties.

Better yet, use a pre-set template drafted by your legal team to ensure all the information is up-to-date and all required clauses and terms are automatically included. Any ambiguity leaves contracts up for interpretation, even down to a comma. State and country laws also need to be taken into consideration.

Rest easy knowing your data is protected by industry-leading security features. Why Choose ContractWorks? See How We Compare. Resource Library. Case Studies. Read how ContractWorks helps customers solve their contract management challenges. Help Center. Latest from the Blog. About ContractWorks. See our current job opportunities and what it's like to work at ContractWorks. Request a Demo. Referral Partner Program. Back to the blog. Here are the seven essential stages of contract management.

Every company has a case for contracts that have the potential to increase revenue and maximize value. How can companies best use them to serve the right purposes and meet goals? Contracts are a vital part of building relationships and completing business transactions. But, what other purposes do they serve? Contracts have many purposes and thus many different reasons for why they are important.

For starters, contracts are the main source of revenue and relationship building for an organization. At their very core, contracts are relationships.

First, two parties agree to work together, and forge a connection that if fostered well and beneficial on both sides, can last years. A contract is the visual representation of that relationship. Contracts also hold each party to their original agreement.

For example, in a SaaS contract, one party agrees to provide the other with software for a specified amount of time. The other side agrees to pay the provider for that same amount of time. First and foremost, a contract is the trail that holds both sides accountable for the terms they set at the beginning of the relationship. Read more about how to start drafting a contract and the basic parts of one here.