Tracking Contract Obligations Management
Organizations invest a lot of time and effort in preparing an all-inclusive, error-free, unanimously approved contract. Getting it signed by the respective parties is the sweet fruit of labor. However, once it has been signed off, it is usually stored among thousands of other contracts, never to be looked at again. All those contract obligations that took so much deliberation to be framed are seldom measured and managed.
Contract obligations, simply put, are the legal commitments that the signing parties have agreed to fulfill. For example, a sales contract includes obligations of payment, delivery, quality of goods, and so on. Contract obligation management ensures that contracting parties fulfill the commitments laid out in the contract.
To get the full value out of your contracts, it is imperative to manage these legal obligations well. Without a contract management system in place, it is hard to ascertain whether a business deal is working as per the terms and conditions or if there is a breach of contract. Important milestones of delivery, payment, and more may easily get missed.
Contracts often contain penalty clauses to be enforced whenever specific obligations are not met by a contracting party. Not tracking contract obligations can lead to missed opportunities and may translate into heavy financial losses for an organization.
In this blog series on contract obligation management, we will discuss why organizations have such a hard time managing obligation. We will also demystify the ways in which a contract lifecycle management solution makes obligation management a cakewalk. Watch this space for more on contract obligation management.
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- Benefits of Automated Post-Award Contract Management
- Does Post-Award Contract Management Really Matter?
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