Whilst signing a contractual agreement means that a deal has been sealed, it's also a sign that there's more work to be done.
Sigh!
The mere fact that contracts outline terms, conditions and expectations doesn't mean everything will go as planned.
This is where contract compliance comes into play. Ensuring contract compliance oftentimes can be a complex and time-consuming process.
In this blogpost, we'll explore the best practices for contract compliance;
📍Establish a Robust Contract Management System: Keep all contracts in one secure location for easy access and quick retrieval. Document and track every change made to contracts and ensure everyone involved is working with the latest version. Implement a system to notify relevant parties of important dates, deadlines and obligations.
📍Conduct Regular Contract Reviews: Pinpoint critical contract provisions such as obligations, termination, payment terms and performance metrics. Evaluate both parties’ level of adherence to such contractual provisions. Determine if any contract modifications are necessary to reflect changing circumstances.
📍Leverage Technology: Automate contract creation, negotiation, execution and management. Use artificial intelligence to extract key information from contracts and identify potential risks. Securely sign contracts digitally to accelerate the process and reduce the risk of errors.
📍Encourage a Culture of Compliance: Educate employees about the importance of contracts and their role in ensuring compliance. Define who is responsible for different aspects of contract management. And maintain open communication channels to proactively address concerns and questions.
📍Implement a Strong Audit Process: Regular audits are essential to verify contract compliance and identify areas for improvement. Conduct both internal and external audits to assess the effectiveness of your contract management processes.
Remember, contract compliance is not just a legal requirement; it's a strategic imperative for business success.
Need procurement specific training? Reach out to support@efemini.com and we'll get you sorted.
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