While contract management staff may not be responsible for knowing all about risk management, it may be up to them to identify key financial risks as a result of contract breaches or missed deadlines. Competencies in post-award contract administration are essential to successful performance. Additional contract management skills are required for specialized areas of knowledge that exceed the competencies in pre-award, acquisition planning and strategy, and post-award. View these events. Negotiation. Contract Management Any legally binding agreement between two or more parties is known as a contract. At a basic level, this can mean simply ensuring that key departments understand when contracts are nearing end-dates or key deliverable dates. Obviously, for the purposes of this blog, we’ll focus on the “manage” portion. It can be a big job handling staff that uses the software, working with other departments, and generally staying on top of contract management duties. The ability of an individual to administer such contracts with customers, employees, partners, or vendors is simply known as his contract management skills. Optimizing this phase can help avoid poor contract performance and administration. After the contract award, the focus then shifts on contract performance which entail tasks that are referred to as “contract administration.” The range of contract administration activities will vary depending on your organization and use case, as well as the type of contract, how complicated the requirement(s) is, dollar value, and overall importance of the contract. The CMBOK enlists the following competencies: The first stage of contract management competencies is the pre-award stage, which touches on the different areas that impact contract management. The authors, María Arraiza-Monteux and René Franz Henschel, outline the skills needed along the gamut of contract work, from initiation, bid, development, negotiation and finally to management. Fax: 1 (888) 398-3666 To learn more about the pre-award stage, view these educational events. Contract managers must be well-versed and up to date on any legal issues that their contract may involve, Harris said. Certified Paralegal Laguna Niguel, CA 92677 Does it allow pulling out key contract terms and clauses quickly? Project management can be a widely defined skill. Included in this competency are eight topics that should be understood in order to have the foundation of contract management before any processes begin. Focusing on the above knowledge sets will help administrators and staff alike to be more effective. The professional skills necessary for contract managers to have include: Efficient and effective performance in a specific industry or work environment Another role contract managers play, Harris said, isbusines… Fortunately, an article posted on the website for the International Association for Contract & Commercial Management gives some insights into skill sets. But increasingly it’s seen as being able to execute on specific goals with an often ad-hoc team and an extended group of stakeholders.Consider the job required of contract management administrators after a software solution is implemented: they have to train staff and work with other departments or branches to gather documentation in order to centralize it. Stonegate Senior Care, Blueridge Software, Inc It’s not like there’s a central school of contract management with a set-in-stone list of skill-building courses (would that there were!). Additional contract management skills are required for specialized areas of knowledge that exceed the competencies in pre-award, acquisition planning and strategy, and post-award. This is not an exhaustive list, just a few fundamentals that really matter – and are worth noting. You may unsubscribe from these and opt-out of future emails at any time. The Competencies a Contract Manager Needs: Is “small data” a cure for big data headaches. But the full range of risk management is worth examining. Be familiar with risk management. By continuing to browse, you agree to our use of cookies. What these points underscore is that contract management goes beyond the record-keeping function. Particularly for contracting professionals who work for or with the U.S. government, this means knowing the Federal Acquisition Regulations(FAR) System, which establishes guidelines for the government’s purchase or lease of services and goods. info@contractassistant.com, Understand (well) the industry and business they serve. The 5 Skills Needed to Manage Contracts For Your Organization, Copyright © 2020 Apttus Corporation, All Rights Reserved, Click Here to download the Ultimate Guide to Contract Management, How Brexit Affects Your Contracts: Top 3 Contract Management Must-Do's, Increasing the Integrity of Your Contract Repository, Contract Development Best Practices with Contract Templates & Playbooks, Efficient and effective performance in a specific industry or work environment. For a contract manager to make the proper business decisions, their knowledge must extend further than just contact terms and conditions. For those administering contract management software, for example, knowing the key fulfillment requirements of a non-financial strategic partnership contract can affect how key dates are identified in the contract. The authors, María Arraiza-Monteux and René Franz Henschel, outline the skills needed along the gamut of contract work, from initiation, bid, development, negotiation and finally to management. They must be equipped with an understanding of the marketplace in which their organization operates and also know how to utilize technology to meet their goals. Look over these relative events. This is a heavily important phase as it reviews the fundamental aspects of contract management, hence being labeled in the “pre-award” category. This covers the early stages of the acquisition cycle from planning to protest. Expand your knowledge for acquisition planning & strategy by attending one of these events. Carla Neal Home » Blog » The 5 Skills Needed to Manage Contracts For Your Organization. The second competency is acquisition planning and strategy. We respect your privacy. The last competency is business. Toll Free:1 (877) 509-7500 Linton said that experienced contract managers are reinforcing the importance of soft skills more, compared to how the skill was considered in 2017. Does the solution provide easy access to contact agreements? Is anyone prepared for this? The National Contract Management Association (NCMA) defines five “competencies” called The Contract Management Body of Knowledge (CMBOK) which outlines the critical terms, skills, and the required knowledge to manage contracts within an organization. Anyone in charge of contract management software knows that using the software is just one part of the job. Looking to improve your business knowledge? Here are a few differentiators for contract management software that would help make that decision. However, the challenge lies in sifting through a range of Contract Management Solutions to determine the best fit. The article “The Competencies a Contract Manager Needs: A Process Perspective“ goes into great depth on all aspects of skills needed for someone who is a hands-on professional in contract management. Does it help track important contract dates, such as, expiration dates, auto-renewal dates, performance reviews and contract end dates. Obviously, for the purposes of this blog, we’ll focus on the “manage” portion. The same may go for a fulfillment supplier’s contract, for example. Administrators often become the nexus for disseminating key contract information to many departments or branches. The survey found that 50% of the top skills are also based around soft skills. An investment in a Contract Management solution will save the investing company millions of dollars of lost revenue, potential opportunities, rebates and more. Contract Management is a key part of companies’ strategic sourcing requirements. We never share your information with others. The professional skills necessary for contract managers to have include: Want to learn more about specialized knowledge areas? Productively interacting with other specialized professionals. A fact well known is that not even one of the contract terms carries any weight unless it is monitored and enforced.