In our previous blogs, we discussed the importance of contract management for a sales organization. How incalculable a flawless contract management process can contribute to the growth of an organization. From negotiation to renewal, every step of contract management is crucial. But even with strict supervision, things can go wrong. People tend to make mistakes, but mistakes are not affordable in contract management. For this reason, most companies implement an automatic commercial contract management system to manage their contracts. Contract managers can help in the short term, but if the company`s response to the increase in contract volumes is to hire someone to manage them manually, it won`t evolve as the volume of contracts continues to grow – you`ll need to add more and more staff to do increasing administrative work. There are many steps in the management of commercial contracts – from the delivery of the initial proposal to the setting of the terms of the contract, to the termination or renewal of the agreement after the agreement expires. Contract management experts are not only responsible for the renewal and drafting of contracts, but also for the interpretation, application and management of existing contracts. Depending on the organization, a contract manager can master all aspects of managing their business contract, or a group of experts can work together on specific steps in the process.
A Bachelor of Business Administration is a necessity. A Master of Business Administration may be preferred. Depending on the type of contracts managed, certifications may be requirements. Some positions require certifications in commercial, professional, and federal contracts provided by the National Contract Management Association. There are many industry-recognized certifications for contract managers through the National Contract Management Association (NCMA). The Certified Commercial Contract Manager (CCCM) designation is the standard for experts working in commercial contract management, while their competitors in the government sector typically hold Certified Federal Contract Manager (CLC) status. Specialists with experience and training in both areas are qualified to become a Certified Professional Contract Manager (CPCM). Most General Contracting Manager positions require several years of experience in active contract negotiation, although experience in related positions may be sufficient. Entry-level positions typically require general management or administrative experience combined with business school training focused on contract negotiation. As the business grows, so does the number of contracts you sign each month. Even under the supervision of a certified professional or even a team of experts, manually managing these contracts, drafting contracts, going through each phase, chaining them in the form of hard copies in the physical location, can become a difficult task.
The possibilities of error are still there. That`s why it`s always the right decision to opt for an automated contract management solution. Contracts are essential to driving business growth – they are the means by which revenue is captured in many companies in the first place. They affect every part of the business and the stakeholders of multiple teams. But the volume of contracts can grow rapidly and disproportionately, in line with the number of employees in the rest of the company. For some companies, it makes sense to have dedicated people working together in the relevant teams to manage contracts. The average salary of a contract manager is $77,660 per year. Many companies also include a profit-sharing plan for contract managers, which can increase profits by around $9,500 per year, depending on the success of negotiated contracts. Finally, you need to choose the right technology to succeed as a contract manager. While you don`t need to go to law school to become a contract manager, you need to talk to the right people in the companies you want to work for to better understand what they`re looking for in a contract manager. Commercial contract management is the process of negotiating formal business agreements between two companies. In the management of commercial contracts, it is the duty of contract managers to organize the entire process and ensure that all parties involved are aware of their achievements, rights and responsibilities.
Since this process is a mix of complex business agreements and legally binding contracts, professionals working in this field need to be highly experienced and qualified. You must be an expert in commerce, i.e. in the management of commercial contracts. Therefore, you need to network with other contract managers and internal consultants working in contract management. In this way, you will learn how to improve your skills and better understand trends and expectations in contract management. A contract manager is a person in a company who is responsible for the management and management of contracts, as well as the process by which they are created and agreed. Here`s what the automated process looks like for contract managers at every step: A contract manager strives to ensure that legal documents are transferred smoothly and quickly, from creation to collaboration and from negotiation to signing. Once the contract is signed, the contract manager is responsible for ensuring that the contracts are stored and organized securely so that they are accessible and easy to search for the stakeholders who need them. You may also be responsible for other concerns before or after signing, such as: There are several paths you can take if you are interested in becoming a contract manager. If you`ve studied law and followed the paths of paralegal or legal leadership, it shouldn`t be too difficult to find a role in a small legal team struggling with the volume of contracts – check out our organized job site to get started.
You can expect to be paid fairly well as a contract manager. According to Salary.com, contract managers typically earn between $106,800 and $142,300 with an average salary of $123,720. Once the contract is executed, the contract manager ensures that it is stored securely. The contract manager must also ensure that the contract is stored in a format that allows stakeholders to find it easily in the future. Contract manager job descriptions typically describe the following responsibilities: A good contract manager always has an eye on business outcomes. It`s important to mitigate risk contractually, but contracts are there to build relationships and deliver on promises between partners – they`re an important growth lever for the business, so a contract manager should always try to “lubricate the wheels” and make sure nothing is blocking that growth. If you want to become an ncMA certified contract management professional, you must have a college degree from an accredited institution, and it is important that you have formal training in the appropriate areas (government/commercial contract management) and pass an exam. To be eligible for CCCM or CFCM certifications, you must have 80 hours of continuing professional education. For CPCM certification, it is 120 hours.
For more information on certification, visit the NCMA website. According to the National Contract Management Association (NCMA), entry-level contract management positions require a bachelor`s degree as well as two to five years of work experience. In practice, this means striving to continuously improve the contract process as well as adapting the conditions and design of the contract to the optimization of the contract signature. Automation is an important step in creating a contract management process. By creating a self-service contract workflow, contract managers can focus on results and care less about each individual document. If you want to learn how to become a contract manager, read on to find out what contract managers do, the qualities of a good contract manager, and the career path of a contract manager. From negotiation to termination or extension, there are several steps in the commercial contract management system. Depending on the organization, this process may be overseen by a single contract management expert or a team of experts. These contract managers not only draft and renew contracts, but also interpret, manage and enforce existing contracts. Once the contract is signed, post-signature features come into play: contract management software plays an important role in helping sales teams draft and process contracts quickly so they can close deals faster. It`s important to close deals quickly, because the longer you delay closing the deal, the more time you give the customer to think about a second option. Manual processes still hinder the creation, collaboration, and management of contracts, with companies often using a mix of Word, email, shared readers, and e-signature to conclude and store contracts.
Add the task of integrating them into additional systems of record like CRM, and it makes sense for some companies to employ someone full-time to take care of them. To earn NCMA certification, experts typically need to complete formal training in government and/or business contract management, gain relevant work experience, and pass an exam. Even if you already have expertise in the field, you must have 80 hours of professional development to be eligible for CCCM or CFCM certification, or 120 hours for CPCM certification. With this in mind, candidates must also hold a bachelor`s degree from an accredited institution. .