The role of contract manager is very crucial for monitoring and execution of a contract. Contract manager is sometimes also referred to as the contact administrator. The contract manager is the key stakeholder who is responsible for overall contract management, risk mitigation, ensuring compliances, reporting to the authorities and other activities related to the contract management lifecycle. We will discuss in detail about the roles and responsibilities of the contract manager in this article. Before diving further, let us know who is the contact manager.

Contract Manager

A contract manager is a professional responsible for overseeing the creation, negotiation, implementation, and management of contracts between parties. Their role is to ensure that contracts are properly executed, adhere to legal requirements, and mitigate risks for the organization they represent.

Key Responsibilities of a Contract Manager

Contract Development

They work closely with various stakeholders to identify contractual needs, develop contract templates, and create terms and conditions that align with the organization’s goals and legal requirements.

Negotiation

Contract managers engage in negotiations with external parties, such as vendors, suppliers, or clients, to establish mutually agreeable terms and conditions. They strive to protect the interests of their organization while maintaining positive relationships with the other party.

Contract Review

They carefully review contract documents to ensure accuracy, completeness, and compliance with legal regulations. This includes analyzing contractual obligations, terms of payment, deliverables, and any associated risks.

Risk Assessment and Mitigation

Contract managers identify and assess potential risks and liabilities within contracts. They collaborate with legal and compliance teams to minimize risks and include appropriate clauses to address them effectively.

Contract Execution

Once contracts are finalized, contract managers oversee the execution process, ensuring that all parties fulfill their obligations as outlined in the agreement. They may track deadlines, deliverables, and milestones to ensure timely performance.

Contract Administration

They maintain contract documentation and databases, tracking contract expiration dates, renewals, and amendments. Contract managers also handle any contract-related inquiries or disputes that may arise during the contract lifecycle.

Relationship Management

Contract managers foster positive relationships with stakeholders involved in the contract process, such as clients, vendors, legal teams, and internal departments. Effective communication and collaboration are crucial to ensure smooth contract management.

Compliance and Legal Awareness

Contract managers stay updated on relevant laws, regulations, and industry standards to ensure contracts are in compliance. They work closely with legal advisors to address any legal concerns and maintain contractual integrity.

Performance Evaluation

Contract managers may conduct periodic evaluations to assess contract performance, identify areas for improvement, and drive value optimization.

Day to day Activities to be Performed by the Contract Manager

The routine activities to be performed by the contract manager are as follows:

• Preparation of request for proposals, bid documents and tender notices for the procurement of works, goods and services.
• Monitoring the tendering processes for the organization.
• Evaluation of bids and proposals of bidders and contractors.
• Contract negotiation.
• Preparation of contracts and contract signing.
• Make sure that the contracts are executed as per the corporate guidelines.
• Oversee the change in scope and modify contracts accordingly.
• Assessment of risks, analysis or risks and taking risk mitigation measures.
• Visit client site and meet with business partners.
• Prepare progress reports and send them to various stakeholders.
• Closing the contracts successfully and issuance of completion certificates to the contractors.
• Recording the lessons learned and suggesting future modifications to the existing policies.
• Dispute resolution and representing the organization in arbitrations and court cases.
• Impart training to other contract management professionals.

Skills Required for the Job

Negotiation and Communication Skills

Contract managers should possess strong negotiation skills to engage with various stakeholders effectively. Excellent written and verbal communication skills are essential for drafting contracts, clarifying terms, and maintaining professional relationships.

Analytical and Problem-Solving Skills

Contract managers need to analyze complex contract terms, identify potential risks, and develop solutions to mitigate them. Strong analytical and problem-solving abilities help them navigate contractual challenges and ensure successful contract outcomes.

Attention to Detail

Contract management requires meticulous attention to detail to accurately review, draft, and administer contracts. A keen eye for identifying inconsistencies, errors, or potential issues is vital to maintain contract integrity.

Project Management Skills

Contract managers often handle multiple contracts simultaneously, requiring effective organizational and project management skills. They should be capable of prioritizing tasks, meeting deadlines, and managing contract-related workflows efficiently.

Software Proficiency

Proficiency in contract management software and tools can be advantageous for efficiently managing contracts, tracking obligations, and generating reports. Knowledge of tools such as contract lifecycle management (CLM) software or electronic signature platforms is valuable.

Professionalism and Ethics

Contract managers must maintain a high level of professionalism, integrity, and ethical conduct. They handle confidential and sensitive information, and adherence to ethical standards is crucial for establishing trust and credibility.

It’s important to note that the specific qualifications and experience required for a contract manager can vary depending on the organization’s requirements and the complexity of contracts involved. It’s beneficial for aspiring contract managers to continuously develop their skills, stay updated on industry trends, and seek professional development opportunities to enhance their qualifications.

Education

Bachelor’s Degree

A bachelor’s degree in fields such as business administration, law, finance, or a related field is often required. Some organizations may prefer candidates with advanced degrees, such as a Master of Business Administration (MBA), especially for more senior or specialized positions.

Contract Management Certification

Obtaining professional certifications in contract management can enhance one’s credentials and demonstrate expertise in the field. Certifications like the Certified Commercial Contracts Manager (CCCM) or the Certified Professional Contracts Manager (CPCM) offered by the National Contract Management Association (NCMA) are widely recognized.

Legal Knowledge

Familiarity with contract law, legal terms, and principles is crucial for contract managers. They should have a solid understanding of contractual rights, obligations, and potential legal issues that may arise during the contract lifecycle.

Industry Knowledge

Having industry-specific knowledge and experience can be advantageous for a contract manager, as different industries may have unique contract requirements and regulations. For example, healthcare, construction, or government contracts may involve specific compliance considerations.

Contract Management Experience

Prior experience in contract management or a related field is highly beneficial. This can include roles such as contract administrator, procurement specialist, legal assistant, or project coordinator, where individuals gain exposure to contract processes, negotiation, and administration.

It’s important to note that the specific qualifications and experience required for a contract manager can vary depending on the organization’s requirements and the complexity of contracts involved. It’s beneficial for aspiring contract managers to continuously develop their skills, stay updated on industry trends, and seek professional development opportunities to enhance their qualifications.

Salary

The salary of a contract manager depends upon the organization, the complexity of work, qualification and the experience of the contract manager. Generally, the salary of a contract manager may very between USD 50,000 to USD 100,000.

Conclusion

Contract manager plays a crucial role in the success of an organization since it is very important that the contracts may execute successfully for the best outcome. The role of contract manager is very challenging and the expertise come mainly with the experience. Along with the technical knowledge, legal knowledge as well as people skills like communication and negotiation are very important for the success in this job.

Read more: Cloud Based Contract Management System: Advantages and Features