#contractmanagementtips

As the COVID-19 crisis continues, many businesses are making critical changes to their operations. These allow them to continue to provide services to their customers and keep their employees working throughout social distancing measures. Your business may need to take a hard look at many aspects of how you manage your employees and your clients. This includes how you manage your contracts throughout the crisis and creating virtual office processes. One important element that you may need to change? Your contract approval processes. 

The Importance of Streamlining Your Contract Approval Processes

Now, more than ever, you need your contact approval processes to move as smoothly as possible. You do not want contracts to get "stuck" while you wait for a specific individual to approve them. Also, you don’t want important clients, vendors, or subcontractors to fall through the cracks while your business makes that critical transition to remote work. Consider these important reasons to streamline your contract approval process: 1. Your clients need fast answers and reassurance.  Many of your clients, during this time, need a fast answer to any questions they have — including questions about the contracts they have pending with your business. You may need to make fast alterations to your contracts to ensure that they meet new industry mandates or requirements, including allowing your customers and vendors alike to maintain social distancing guidelines.  2. Remote-working employees can cause your contract approval processes to take longer.  Remote employees may not all be at their desks as a contract moves to the next stage in the approval process. Many employees are working from home with kids, spouses, pets, and other challenges that prevent them from accomplishing their business days according to their usual responsibilities. As a result, a complex contract approval process may take even longer to execute than normal.  3. Your employees need streamlined processes now as never before.  Because many of your employees are juggling other responsibilities, including caring for children or elderly loved ones, alongside their usual job responsibilities, they need a streamlined contract approval process that will prevent unnecessary work added to their days. 

Revising Your Contract Approval Processes

A completely paperless contract approval system offers incredible advantages for your business. It's even more advantageous in the middle of a situation like the COVID-19 pandemic. Many businesses must make a fast transition to remote work so they can provide a high quality of service to their customers. By transferring to a paperless contract approval system for remote workers, you: Make it easier for your employees to access vital information.  Remote employees don't have the luxury of walking down the hall to go through a paper file. Instead, they need to be able to access that information from home. They also need to be able to move quickly, without waiting for paper documentation, to make it easier for them to complete vital work tasks.  Streamline contract approval processes.  Using paper contract approvals for remote workers can substantially slow down your contract approval process. This will make it harder for you to get the documents your customers, vendors, and subcontractors need in their hands. You might have to physically mail papers back and forth or deal with the need to print and scan documents. With a paperless system, on the other hand, each member of the team can instantly access needed information.  Prevent potential roadblocks due to shelter-in-place orders.  Shelter-in-place orders mean that you can't sit down with a client, vendor, or subcontractor to get your documents signed. You can, however, send those documents via the internet. You can move them through your contract approval process without ever having to come into contact with other people.  Enable easier collaboration between remote workers.  Dealing with paper contracts can make it difficult for remote workers to collaborate with one another on contracts, terms, and implementation. You may not be sure that everyone is dealing with the same document. You might have to scramble to make sure everyone has a copy of the relevant documentation. With remote, paperless contract approval and management, on the other hand, all your employees can easily access the documents they need.  Many businesses already have a solid contract management system in place. But it’s one that, at best, requires a few adjustments to make it possible for them to make the shift to remote, paperless contract management. Others, however, may find themselves starting from scratch as they make the shift to remote work for their employees. Follow these steps to make the transition to a paperless contract approval system for your business and your remote workers. 

1. Use a cloud storage solution for your contracts and related documents.

Cloud storage offers several clear advantages for a remote team. If you've been using a physical storage system or storing your contracts on a local network, it can pose many challenges when most of the team shifts to a remote environment. Using cloud-based contract management software, on the other hand, will: Allow all employees to easily access all the information they need to accomplish their business tasks.  Sales teams need to be able to access sales templates and other information about those contracts. Implementation teams also need ready access to information about deliverables and contact information. Despite roadblocks like shelter-in-place orders, your employees need to be able to access that information on the go.  Maintain awareness of the current version of each contract.  Thanks to cloud storage, you can keep up with all versions of each contract within your contract management system. This includes making it easy for all employees to access the current version of those documents quickly.  Allow multiple employees to work on the same document without the need to save multiple copies.  Cloud contract management solutions substantially improve collaboration in a remote environment. 

2. Create clear policies governing remote access for your paperless contract approval system.

You may need to create new policies to govern remote access to your contracts and other related documents — including how contracts will move through the approval process during this time. Remote contract approval processes may look very different from the physical approvals your employees handled in the past, as may your process for creating new contracts or implementing current ones. Your policies should include: Who can access specific contracts or specific processes.  Your sales team, for example, might need to access new sales templates to allow them to create those new contracts effectively. But your legal team may not need to create contract templates directly. In the rush to go remote, you may not properly assign permissions within your contract management software. As soon as possible, go back and check those permissions to ensure that team members do not have access to secure information they shouldn't be able to see.  How you'll handle electronic signatures.  Electronic signatures carry just as much weight as physical signatures, but you still need to manage and control those documents. What does your e-signature policy currently look like? Does it need to change as you make the shift to remote work, especially in response to an emergency situation?  What processes you'll put in place to allow management to monitor contract approval.  You may need to put more effort into monitoring contract approval processes and ensuring that your contracts are approved in a timely manner. Throughout a crisis that mandates a shift to remote work, you want your contractual partners to know that your business is still operating as efficiently as possible. That includes ensuring that you do not fall behind on contract approvals. Clearly set forth policies governing how you will handle monitoring those contracts to ensure that you don't miss anything important along the way. 

3. Set up reminders and workflows in your paperless contract approval system.

As your company makes the shift to remote work, you also need to make the reminders and workflows your business uses every day virtually. You may already have clear workflows as your contracts move through their pipeline, but you might not have taken the time to clearly set out those workflows in a way that your employees can view at need. As you make the shift to remote work, make sure you put those reminders and workflows into the system. You might, for example, want to automatically move your contracts on to the next phase of the approval process. Alternatively, you might want to set up reminders that let employees know if a contract has spent too much time sitting in their queue. You may also want to consider: Contract Templates Contract templates can provide your sales team with more autonomy and enable them to create contracts that are more likely to be approved as they make their way through the paperless contract approval system. Your contract templates should set out standard terms and the potential terms your business might be willing to accept, including ranges for things like cost. Your contract management system can also put checks and balances in place that will prevent a contract from being created or approved that is outside the acceptable range for your business. Do you already have contract templates in your system? Are you making the shift to remote work in response to a disaster like the COVID-19 pandemic? If so, then you may want to revisit your contract templates to make sure they reflect the current needs of your business and your customers. You may, for example, want to include clauses that will designate how you'll handle potential future social distancing measures. Alternatively, you might want to change your payment terms in light of the current crisis.  Contract Scoring  Now, more than ever, you do not want to expose your business to unnecessary risk. You may want to implement a contract scoring system that identifies any potential dangers or risks to your business related to your business. Contract scoring can identify potential compliance risks. It can also identify excessively large orders or contracts that could damage your business if you cannot meet the terms. Check your contract scoring in the light of your shift to remote work. Then determine whether you need to make any changes to that system moving forward.  Contract Renewals Your existing customers, vendors, and subcontractors are every bit as important as the new ones. In many cases, they’re even more important. You don't want to let those contracts slip through the cracks, even if your work may have slowed down or your priorities may have shifted during this time. Make sure your workflows include early reminders about contract renewals to give you plenty of time to take care of those tasks. You may also want to consider what new information needs to be included in future renewals. 

4. Search out potential bottlenecks ahead of time.

Bottlenecks can slow down your contract approvals and implementations. The shift to remote work can create new bottlenecks in a system that previously flowed smoothly. Alternatively, it can emphasize bottlenecks in your existing system as it slows things down even further. Consider any potential issues that could slow down contract approval. Also, work out any issues that might prevent you from approving your contracts effectively.  Bottlenecks might include: Overworked employees with too much on their plate.  Some employees may struggle to keep up with their work when they're in the office. Making the move to remote work can present even more challenges — especially during situations like the current shelter-in-place order, which could mean that employees are working from home with spouses and children. Identify employees with too much on their plate and look for ways to alleviate those burdens to help get your contracts approved faster. Employees who do not understand how to use the paperless contract approval system.  As you make the shift to remote work, it's critical that all of your employees know how to use your contract management system effectively. Provide training as you move into a period of remote work. Also, check in with employees throughout that period to ensure that they know how to use your new paperless contract approval system effectively.  Reminders not getting sent at the right times.  Without reminders, employees may not even realize that they have a contract awaiting their approval. Make sure your contract management system includes the reminders your employees need to keep those contracts top of mind. With this preventative step, they won't slow down the contract approval process. 

5. Check the search and storage features in your paperless contract approval system.

When it comes time to conduct a contract audit — and the contract is nowhere in sight — most people panic. While this is an understandable feeling, it is preventable and there are solutions. The best step is to catch it before the problem escalates by implementing regular internal contract audit projects. Here are three basic steps you can take when there’s a missing contract:

1. Gather all team members. 

If possible, call an emergency meeting to discuss which contract you are specifically searching for. If a team meeting isn't possible, send an email or call those you know worked with the contract. Ask them to remember when they last worked on it and where they remember seeing it last.  As you address team members, try to remain calm. Take a deep breath. Then explain the urgency of finding the contract, but don't incite panic. It will only create confusion and chaos as staff scramble to find it. Rally the team, and upon locating the contract, devise a plan to prevent a similar situation in the future. 

2. Search paper and digital files. 

File cabinets remain a common sight in many offices. So check files and messy desktops for possible paper copies of the contract. If no paper copies are found, ask your IT department to help you conduct a computer search. Check sent email folders to see if the file was emailed to someone internally. And lastly, check the copying machine. Did someone make a copy and leave it in the copier? The case of your missing contract could result in a solution as easy as that. The documents may also be in old archives, email inboxes, and compressed storage drives.

3. Contact the other company for a copy of the missing contract.

This is often the last resort when your internal searches are unsuccessful. Admitting to the other company that you are unable to find a copy of the contract may not leave them with a very good impression. On the other hand, chances are they too have missed place a contract at some point and may ask you for a copy. To remain professional and to prevent embarrassment, consider investing in contract management software for your business. 

4. Invest in ContraxAware.

Once you find the missing contract, take steps to ensure one never goes missing again. Investing in contract management software, like that of ContraxAware is your best option for securing and managing contracts in one place. The advanced features of ContraxAware include the ability to: SearchFilterGroup Sort Share As a collaborative tool for your contract management, ContraxAware reduces the risk of losing important contracts. The easy to use dashboard makes it simple for team members to use to find contracts, make changes, alert others to changes, and more. ContraxAware can save you time by eliminating frantic searches for important documents.  The time spent searching for a missing contract is a time your business can never recover. It not only upsets the workflow, but it is also a strong indicator that your business needs a better file management system. At ContraxAware, our leaders have software development and legal experience. We understand the issues that can arise when you lose a contract. That's why we developed ContraxAware as a contract management system for business, no matter their size.  Your daily work life is stressful enough without the sudden crisis of a missing contract. Streamlining your contract into a centralized system can prevent the unwelcome adrenaline rush of a missing contract. It can also prevent you from having to make an embarrassing call to the other company.

About ContraxAware

Contracts are an important pipeline for any successful business. The exchange of services detailed in the contracts requires precise language that is applicable to the expectations of both parties. Managing multiple contracts is a juggling act where even the most experienced professional can drop the ball. Internal contract audits create a system of check-n-balances that prevent — and guard — your company from making serious and costly mistakes. 

Ultimate Contract Audit Checklist for Complete Records

A contract is only as good as the terms included in the document in addition to any accompanying records. Creating the ultimate internal contract audit checklist before you start is the best way to streamline the audit process.  While contract audits are necessary, they don't have to consume your time. Assemble an audit team that is not only qualified but efficient for the task at hand. Next, set goals for the audit, such as a timeline for completion. Next, let them help build the audit checklist — each team member may think of something you forgot to include. Finally, don't micromanage your team. Trust them to complete in the audit using the skills that attracted them to your business.  The size and details of the internal contract audit checklist may vary from checklists used in the past. A federal contract, for example, may require a more extensive checklist than a contract with a private business. No matter what type of contract your team begins to audit, establishing objectives and sticking with the checklist is the best way to start your project. 

How to Manage a Complete Internal Contract Audit Project with Your Team

Managing a complete contract compliance audit project demands a strong team with clear objectives. Identifying the goals of the internal contract audit project and the best way of approaching them are two key places to start with your team.  Chances are your team has other tasks to attend to throughout the internal contract audit process. The right contract management software can unite the team even when they aren't in the same room. Access to the necessary files and alerts specific for the audit can easily target only those team members working on the project. Software like Contraxware not only makes this possible, but it makes it an appreciated time-saver for everyone.  Providing your team with the tools they need can prevent frustration and extra stress. Contract software management that helps with the internal contract audit process can help team members better understand their role in the project. While the overall project is to ensure compliance, specific team members may need access to restricted files. A one-stop software system like ContraxAware can provide levels of security for some and prevent access for others, ensuring that your company's data remains secure. 

Common Errors with Contract Records You Can Easily Identify and Save

Both sides representing a contract can make a mistake. Whether it is mathematical or relates to the contract terms, identifying and correcting the issue is easier with contract management software.  No business, large or small, can afford even the simplest mistake. Contraxware allows you to identify, fix, and save changes within one software system that is accessible to all team members.  Reduce Process Confusion Not streamlining your internal contract audit project can result in contract chaos. Contract audits aren't necessarily fun. But they are important, and the process doesn't have to generate stress. Centralized information accessible to the project team members can result in a smoother process for all.  Check for Human Errors Human error is a very real thing, even in the day of sophisticated technology. A comprehensive contract software management system provides a way to implement checks and balances for your team. When one signs off on a task, another team member can know — without emailing or phoning them to ask.  Catching errors with contract records is easier when you have a cloud-based software system supporting you. Once you identify the mistakes and save them, you are better able to watch for the same issues in other contracts.  Whether the mistake is mathematical, involves a wrong government code, or an incorrect invoice number, catching it during the audit can save you a world of trouble later. As important as your business is to you, the same is most likely true for the client with whom you have the contract. Identifying and saving contract errors can save a business relationship. Missing them can cost you a contract, especially with a government contractor.  Your internal contract audit team can breathe easier knowing that the contract management software they use provides a layer of protection to the process. Audits aren't necessarily fun, but contract management software like that of ContraxAware can make it easier to identify mistakes and protect the company’s important contracts. 

How to Internally Search for a Contract

Searching for a particular contract is time-consuming without contract management software. By utilizing a system like Contraxware, you can search the database using the interactive dashboard. There's no emailing, phoning, or tracking down a certain employee to find a contract. Knowing a contract is at your fingertips with a quick software search can provide you peace-of-mind and prevent panic.  ContraxAware includes data management features such as searching, filtering, grouping, sorting, and sharing of data. These features are invaluable tools for finding the contract you need. The cloud-based software serves as a safe haven for your most valuable documents, keeping them secure and easy to find. 

Breaking Down Your Contract Process for Internal Auditors

Internal auditors may not understand the original contract process. For whatever reason, their role wasn't necessary until the audit project. Bringing them up to speed is easier by granting them access to the right files. All team members may not require access to all files. Establishing permission for who can review which files and what files are to remain restricted is made simpler with Contraxaware. Contract process 101 may seem silly to the staff who work with contracts every day. This method may just help those who join the audit process later to better understand what they are looking for and why it is important. Never overestimate someone's knowledge or skills regarding contracts. Providing review and easy software access to the right files can help everyone better understand the project.  A special process pertaining to government contracts may help improve the process for larger, federal projects. The scope of the contract and the partners involved plays an important role in how to approach the contract process. So tackling the contract process in stages, using the right software, can make for better collaboration and a more successful workflow process. 

Auditing Government Contracts

Depending upon your business, government contracts can serve as lucrative and steady accounts. If your business has government contracts, you are not alone. More than 4 million clients serve the U.S. Government, collecting more than 5 billion annually. Any type of audit involving a government contract requires extra attention to the details. Federal contracts are subject to the Federal Acquisition Regulation Act (FAR) and the Federal Acquisition Streamlining Act (FASA). Government contracts can also include state and local level projects.  Auditing a government contract advances in complexity depending upon the level of government. A contract with a local municipality, for example, will not require quite as a complex of an audit as one with a large federal agency.  Federal rules and regulations are known to change frequently and can leave your team confused or worse, complacent. Issues that may arise over the course of a contract are ones of government coding, invoice sequencing, and mathematical errors. Any incomplete, incorrect, or inadequate information can impact not only receiving payment but any future government contracts.  Ensuring that your government contracts are up-to-date, on-track, and error-free is essential to continuing business with them. 

About ContraxAware

At ContraxAware, we understand the challenges businesses face with contract audits. Our leaders bring software development and legal experience to the table. Our entire team recognizes the value a contract software management system can deliver for better business management.  Internal contract audits aren't easy, but they are important to  Catching mistakesAlerting you to potential problemsEnsuring ongoing business partnerships The better the contract management, the better the relations — and trust — with your business partner. A contract audit is your company's best opportunity for reviewing policies, along with evaluating and verifying contract terms. It also is an opportunity to inspect accounting transactions. The entire process has lots of moving parts and team members who are skilled in specific areas of the audit. Easy to Use Tools Centralizing the audit process is possible. ContraxAware provides the necessary tools you need to prevent confusion, avoid mistakes, and to alert you to tasks. It decreases and often eliminates the need for face-face meetings.  Your team has enough on its plate. Gathering them for meetings or filling their inbox with countless emails can lead to them tuning out, rather than in, to this important project. No one has time to stop their busy day to search in a file cabinet for a particular folder. ContraxAware has an easy-to-use dashboard that no matter when a team member comes on board, they are able to learn the software quickly. Built-in alerts keep the project, and team members, on task. The software provides a 360-degree view of the user's assigned task and workload. The user can use built-in tools to drill down to the details of a specific contract. This process helps team members to focus better on their individual tasks.  Built-in walkthroughs provide the training your team needs to get up-to-speed. Step-by-step instructions and on-screen prompts help walk users through the learning process. Also, eight hours of one-on-one internet training comes with the professional and above subscription plans. 

Let ContraxAware Make Your Internal Contract Audits Easier

The strength of your contracts is incredibly important. Weak contracts won't benefit your business — and they could, in fact, lead to unexpected failures. Luckily, you don't have to flounder on your own to create stronger contracts. Start by learning more about what KPIs are and how to score your contracts around them. Then create and utilize these five key tools for your business to make your contracts stronger and more effective. Many of them, you can start using immediately!

1. Boilerplate Contracts

For the most part, your business uses the same basic standards every time you write a contract. Your team knows what you're looking for, and you don't have to reinvent the wheel every time you write a new contract. There's nothing wrong with using the same basic language every time you take a new contract to a client — especially a client with basic needs that fit the common requests seen by your business. Building a strong library of contract templates — and deciding what your boilerplate provisions should be — ensures your contracts have a high score from the start. Take the time to put together boilerplate contracts that fit your most common contract requirements. You don't necessarily have to use those contracts directly and in their entirety every time, but they will give you a starting place — not to mention making it easier to ensure that your team doesn't miss anything as you put together a new contract. 

2. Acceptable Negotiation Thresholds

Some clients will sign that boilerplate contract as-is. Others will want to negotiate. When the time for negotiation hits, however, you don't want to leave your team floundering without direction. So, create an important list of negotiation thresholds. These thresholds should always tie into the KPIs you identified at the outset of your contract management process. They might include: Acceptable negotiation thresholds for pricing. How low are you willing to go? What elements might a customer remove from their contract to take that threshold lower? Pricing parameters will also need approval from your company’s financial representative, so get them involved early.Contract term lengths. Are you willing to extend the length of a contract for a new client? Alternatively, is a contract with a shortened term profitable enough at a certain contract value? What about an existing client, especially one who has been with your company long-term?What features you're willing to offer and how they impact the price range. Depending on the type of contract that you're writing, this could include details like warranty, customer support, or service.  Once you have a solid list of your negotiation thresholds, your team can use them to shape their contract negotiation efforts. This can make it easier for the team to negotiate contracts on their own. Not only does this streamline the contract management process, but it can also increase customer confidence in your team. 

3. Living Documents for the Approval Process

Sometimes, you will need to make unique changes to your contracts to fit a specific customer's needs. When those unique approvals need to be made, who takes care of it? What does the process look like? Create a living document that you can alter easily: one that shows your team and your sales representatives exactly what will happen to get those changes approved. This accomplishes several things: Lets your negotiation team know what steps they will need to take.Specifically lists the individuals responsible for approving unique changes, which can let your team know exactly whom to go to. Helps give your sales representatives to communicate a timeline to the customers. That helps everyone understand how long they may have to wait for the contractual changes they want. Learn more about how to streamline your company’s contract approval process so contracts never sit in someone’s inbox.

4. A List of Non-Negotiable Contract Elements

There are some details your business simply isn't willing to give on. These are elements that must be contained within your contract in order for you to protect yourself or your customers. Make a clear list of those elements that are non-negotiable. This can substantially streamline the contract approval process by letting your negotiation team know exactly which elements you won't be willing to give in on. Having an ironclad list also reduces friction between your team and the sales or renewals team when commissions are on the line.

5. A Scheduled Reporting Tool for Potentially Poor Contracts