Contract Management SOP

This detailed SOP provides contract managers, legal teams, and project managers with a structured framework for managing the contract lifecycle.
It includes:
– Step-by-Step Process Flow: Outlines essential subprocesses such as Contract Preparation, Contract Negotiation, Contract Execution, and Contract Monitoring, with clear actions, decision points, and error-handling procedures to ensure efficient and compliant contract management.  
– Risk Management: Identifies key risks such as incomplete requirements identification, unsuccessful negotiations, and non-compliance with contract terms, with mitigation strategies including thorough stakeholder engagement, negotiation training, and a monitoring system to track obligations and key dates.  
– Compliance and Regulatory Requirements: Ensures adherence to relevant laws and regulations, including the Contracts (Rights of Third Parties) Act 1999, the Consumer Rights Act 2015, and GDPR, by incorporating legal reviews, compliance checks, and regular audits throughout the contract management process.  
– Key Performance Indicators (KPIs) and Controls: Defines KPIs such as contract drafting efficiency, negotiation success rate, and compliance monitoring rate, with controls like stakeholder engagement processes, internal review procedures, and monitoring systems to track key dates and obligations.  
– RACI Framework: Clearly defines roles and responsibilities for each task in the contract management process, ensuring that project managers, legal counsel, and stakeholders are accountable and engaged at every stage.  
– Systems Requirements: Details the necessary systems, including a Contract Management System, Document Management System, Communication Tools, Compliance Tracking System, and Electronic Signature Platform, to support the contract management process and ensure efficient, secure, and compliant operations.  
– Appendices: Provides practical resources such as contract preparation checklists, contract negotiation terms of reference, and real-life case studies to guide users through each stage of the contract management process effectively.