Best Practices in Contract Management

This SIG member from the buy-side is currently looking into ways to better structure their organization to improve compliance, consistency, and overall quality of the contract management practices. They currently operate in a purely decentralized way, in which contracts are executed by a procurement individual and the management and administration of that contract is given to the business unit to assign as they see fit. The storage, retention, and even sharing of contract information between procurement and the business is often different or non-existent. Compliance is difficult to assess, and there are wild variations in how a contract is managed and to what level of diligence that is conducted - none of it based on any sort of logical segmentation. So needless to say, there is a process problem. 

They are in a position where they may be able to make significant changes to their business structure and processes to improve our contract management in the organization. This member would like to hear from SIG members who are successful (or not!) to understand what is the current standard and to help set them up on the right path. 

Will you please take a moment to respond?

1. In your organization, where does contract management live?

2. Are there dedicated/professional contract managers? And are they the procurement officer/staff who completed the procurement, negotiations etc. If not, is there any feedback loop to these individuals? 

3. If there is a handoff to another individual or unit after contract execution, what does that handoff look like

4. How does this set-up work for your organization (e.g. are there compliance issues?)

5. Who is responsible for ensuring contract compliance, who is responsible for verifying deliverables?

a. How is the contract administrator involved in the day-to-day of the project/purchase/etc.

6. What were the challenges faced with this set-up?

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