Business Ideas

Top 10 Tips on How to Manage a Contract

Top 10 Tips on How to Manage a Contract

The outcome of a contract is solely dependent on how you manage the contract after getting it. Here are top ten tips to guide you in managing your contract and making the best out of it.

10. The right contract:

Ensure that you get the right contract first. Once you have the right contract, ensure that you put in place the frameworks that will help in building a good relationship and good rapport among all involved parties. It might be hard for you manage the contract much later if you don’t do this from the start.

9. Managing the contract actively:

There are three major areas that you should focus on when it comes to managing the contract successfully namely service delivery management, rapport management and contract administration. You shouldn’t allow the wrong hands or inequality in the management of any of those areas because they are all equal and important to the contract.

How to Manage a Contract

8. Entrenching service levels into the contract:

You should create an appendix called Service Level Agreement to the contract that will help you solve problems and allow continuity of the contract. However, as you create the levels remember there are certain costs

7. Gauge quality against quantity:

You should create assessment standards that measure wholeness, availability, competence, consistency, flexibility and appropriateness. By being able to measure all these aspects of the business, you’ll be able to balance the quality and quantity of the contract’s productivity.

6. Ensuring value for money:

This basically refers to the comparison between two major aspects of the contract namely service quality and value received. Support improvement and continuous enhancements from the contractor. In doing the price comparisons you have to include all the costs involved in the contract.

5. Managing your risks:

Managing the uncertainties of outcome or risks is very vital in any contract. In other words, you ought to manage and control some of the factors that might inhibit the execution of the contract to the end.

4. Managing the relationship:

For successful relationships, there has to be communal trust, honesty and understanding plus a combined approach to managing delivery. Good communication helps a lot in fostering peace and harmony.

3. Dealing with issues promptly:

Never should you overlook problems however negligible they might seem because they might grow and fester. Good dispute resolution programs will help in solving conflicts and thus avoiding escalation of a crisis that might affect the contract as a whole. Aim to curb and solve problems always.

2. Administration of the contract:

Don’t underestimate the significance of administration of the contract. It’s basically defined by the kind of relationship built between the provider and the customer. The administration procedures should be clear on the responsibilities of all the involved parties. Parties should also be well informed about expiry dates.

1. Documenting everything:

Besides ensuring that all parties involved in the contract have the right versions of up-to-date documents, you ought to set up systems that enable smooth documentation of everything. All changes have to be controlled by the right persons and everything documented. Remember in case of anything, seeking legal redress without the right documents is almost impossible!

Business Ideas

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