Today’s post will address the core challenges often faced with post-award contract lifecycle management.

Enterprises deal with thousands of contracts spanning various functions like legal, sales, HR, procurement, and so on. Manually managing this many contracts and tracking post-award contract compliance becomes very problematic.

(In another blog post explaining the benefits of post-award contract management, we explain the term and establish the significance of post-award contract management processes.)

The most common challenges to effective post-award contract management:

Tracking global contracts:

  • Organizations doing business globally have a range of stakeholders with varying expectations and needs. This results in different currency formats, varying terms, conditions, and specific escalation/ de-escalation clauses.

Gaining visibility into contracts:

  • Contracts are stored in multiple disparate systems across the organization. This leads to a lack of visibility further gives rise to a host of issues. These may include – financial losses due to non-compliance, missed opportunities for revenue capture, and limiting the ability to minimize lost savings.

Measuring contract performance:

  • Organizations must develop mechanisms to manage and measure performance throughout a contract’s lifecycle. They need to define quantifiable targets (revenue growth, overall corporate risk, value for money, etc.) and have the means to track underperformance to install corrective measures.

Stakeholder Alignment:

  • Amending contract terms and conditions is difficult without a common interface for collaboration among stakeholders.

Managing Renewals and Expiries:

  • A common collaboration platform enables a thorough review of auto-renewable contracts. Otherwise, these might renew without any re-evaluation or renegotiation based on contract performance.

The next and final blog post in this series will focus on the ways in which these post-award contract management challenges can be successfully addressed.

Also read: Does Post-Award Contract Management Really Matter?

Learn about Zycus’s Post Award Contract Risk Management Solution.

For more information on contract management, contact us at info@zycusicontract.com.

Author Stuti Mehrotra

More posts by Stuti Mehrotra