Improve contract performance with effective change management process
Track and manage contract change management processes effectively to improve contract performance and extract maximum value from agreements, while reducing the time and resources spent during the change process.
What to do when contracts do not meet expectations on value or quality? Many times, the renegotiation of contract terms, even for simple changes, can take time, resulting in lost revenue or delays. Additionally, keeping track of the discussions related to change management processes can be challenging when using tools such as email to retain discussions. Capturing and understanding the actual changes required in a contract may also be difficult, particularly when major updates are required.
Change management in contracts
Change management is the process of implementing adjustments to an active contract. Change can represent an opportunity to renegotiate elements, such as pricing or identify other improvements that can enhance contract performance or value. Implementing and managing changes to a contract and its scope is a common process that may be performed many times during its life cycle.
Sometimes changes are small or more complex, and the process of managing these is aided by maintaining records and discussions that express the nature of contract changes. This also ensures a clear and well-documented background for the rationale behind changes, as well as confirmed approval from internal or external stakeholders.
Change management is only possible through regular communication between all contracting parties, and it can be challenging to ensure that changes to a contract are universally understood and the scope of changes are clearly distinguishable for all concerned.
Benefits of effective contract change processes
Well executed contract change processes can reduce costs, risks and even contract complexity. Additionally, changes can improve contract schedules and obligations to the benefit of both parties. Effective change management processes can help sustain good relationships with customers or suppliers by providing quick, concise, and clear information about changes as early as possible in the process. This is likely to benefit any negotiation action taken during the change, helping to reduce the time and effort needed to modify a contract.
Cloudia Contract allows users to easily initiate and manage contract change processes so that they are completed in a timely manner, thus avoiding drawn-out renegotiation processes, while ensuring that changes are fully understood and recognised by all parties.
Why Cloudia Contract?
- Access full editing capabilities to active contracts
- Generate a clear summary of any and all changes made
- Quickly and effectively edit contract elements, including individual clauses and attachments
- Easily share information about changes to internal and external stakeholders to expedite the negotiation process
Want to improve your contract change management process? Contact us with the contact form below to get started.
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