Contract Management Checklist: Tips for Streamlined Contract Oversight

Effective contract management is critical for business success. A contract management checklist can help you manage the contract lifecycle from start to finish, reducing risks and improving compliance. In this guide, we’ll break down a streamlined contract management checklist to help your business stay on track.

Why you need a contract management checklist

A checklist helps standardize your contract process, minimizing risks and improving efficiency. Whether you’re in procurement, legal, or contract management, a checklist keeps things consistent and manageable.

Key components of a contract management checklist

1. Contract request and initiation
   Define the need for the contract. Identify the type (vendor, client, partnership), scope, and key parties. Use a standardized contract request form to get everything in order from the start.
2. Drafting the contract
   Use pre-approved templates and include essential clauses like confidentiality, payment terms, and dispute resolution. Clearly outline deliverables and deadlines.
3. Internal review and stakeholder input
   Circulate the draft for feedback from relevant teams like legal and finance. Incorporate revisions and conduct a risk assessment to spot potential issues early.
4. Negotiation with external parties
   Engage the other party for their review, track changes, and resolve disputes to finalize the terms.
5. Approvals
   Route the final contract for approval from key stakeholders and document these approvals for reference.
6. Signing the contract
   Choose whether to sign electronically or with a wet signature. Store signed contracts securely in a centralized repository.
7. Storage and document management
   Store contracts in a secure, central repository. Tag key details like renewal dates and contract owners to stay organized.
8. Monitoring and performance tracking
   Set up alerts for key deadlines and regularly track contract obligations and performance.
9. Contract amendments
   Document any changes, review their impact on the contract, and store updated versions to keep everything clear.
10. Renewal or termination
    Review contract performance, decide whether to renew or terminate, and follow the correct procedures for either outcome.

Best practices for using a contract management checklist

1. Customize the checklist
   Tailor the checklist to fit your company’s needs and the types of contracts you handle.
2. Automate when possible
   Use contract management software to automate tasks like sending reminders and tracking key dates.
3. Train your team
   Make sure everyone knows how to use the checklist effectively to keep the process running smoothly.
4. Regularly update the checklist
   Keep your checklist current by regularly reviewing and adjusting it to meet evolving business needs.

How contract management platforms can help

Using a contract management platform can further streamline the contract lifecycle. It centralizes contract activities, automates reminders, and improves collaboration.

Conclusion

A contract management checklist is essential for keeping contracts organized, compliant, and low-risk. Paired with a contract management platform, it can improve efficiency and collaboration across your team.