The period ensuing contract execution by all associated parties signifies the commencement of the post-contract phase. At this definitive point, the focus progresses from contractual negotiations to operational execution, marking a critical turning point in the comprehensive contract lifecycle management.
Managing the Delivery of Contractual Obligations
During the post-contract phase, the focus shifts from negotiating favorable terms and pricing to actively managing the delivery of obligations and requirements and meeting deadlines stipulated in the now formalized contract document.
This phase requires diligent oversight and coordination to ensure that all products, services, assets, data, intellectual property, payments, reporting, quality standards, and other stipulated contract elements are delivered successfully per the letter of the agreement. It is no longer about positioning and theory - now, the operational execution of contracts is a need in real-world constraints.
Importance of Rigorous Post-Contract Management
Astute management during this post-contract stage helps cement positive working relationships among customers and suppliers for the duration of the agreement. The expectations and building trust put an organization for potential expansion of scope with the currently contracted parties or winning future business opportunities with new clients.
Conversely, failure to actively manage contract obligations and meet expected deadlines during the post-award phase can lead to disputes, revenue losses, cash flow strains, corporate reputation damages, and other impacts that tarnish relationships or impair business performance.
Therefore, diligent post-contract administration is imperative to mitigate risks, uphold quality standards, satisfy stakeholders per contractual obligations, establish credibility in one's performance, and position the organization advantageously for potential additional revenue-generating business future.
Best Practices for Post-Contract Management
Here are some tips for effectively managing post-contract obligations and deadlines:
Understanding All Contract Requirements and Obligations
Comprehensively understanding all contractual requirements and stipulated obligations is critically vital. One must review the entire document multiple times to grasp every component carefully. Any ambiguous or unclear verbiage should be clarified with legal assistance to avoid misinterpretation.
Core deliverables, milestones, timelines, performance metrics, payment terms, and each party's responsibilities should thoroughly document other details and inaccessible recommendations for continuous planning and execution. Vague contract language can yield downstream misunderstandings if not proactively clarified.
By comprehensively understanding what is contractually obligated, one positions the organization to successfully satisfy its commitments and deliver substantive value to all parties.
Driving Strong Governance and Workflows
Once you fully grasp everything the contract requires, the next critical move is putting rock-solid organization and tight workflows in place to execute systematically. Lay out who's responsible for what, who makes sure things happen on time, and how all the departments coordinate to fulfill the contract terms steadily.
Establish step-by-step procedures to keep close tabs on deliverables, deal with any changes or issues, send accurate invoices fast, keep stakeholders posted on progress, and carry out all the other must-dos. Leverage handy contract management tech tools to optimize workflows for efficiency and consistency. Institute quality checks at crucial milestones to catch any problems early. This governance structure and streamlined way of working ensure your team can reliably deliver on obligations and meet expectations under the agreement.
Planning for Proactive Communication
Maintaining open and proactive communication with clients is a top priority when managing post-contract obligations and deadlines. There needs to be regular check-in meetings or calls to discuss progress, upcoming milestones, potential challenges, change requests, and feedback.
A communication plan should be in place for providing contractually required updates, reports, and notifications by the specified deadlines and channels. It is necessary to obtain the customer's written sign-offs on milestones, deliverables, change orders, and payments to avoid disputes eventually.
If the issues may impact contract timelines, quality, costs, or terms, try to notify the client sooner and demonstrate that solutions to mitigate the impact are present. This level of proactive communication enables both parties to work collaboratively to resolve problems early and meet deadlines successfully.
Managing Changes, Risks and Non-Compliance
A crucial tenet of a constructive project and contract management area seems to be the skilled monitoring of changes, hazards, and incidents of non-compliance. It involves a thorough analysis and skillful reaction to deviations from the original plan, a keen recognition of potential dangers that could obstruct development, and a rigorous correction of circumstances where concerned parties fail to uphold the agreed-upon commitments.
Imagine this as a thorough tripartite plan that skillfully handles unforeseen changes, carefully guards against probable dangers, and diligently ensures adherence to established procedures. Through the proactive control of these factors, contracts and projects can expertly keep their course of achieving desired results while at the same time minimizing any disruptive effects.
Conclusion
Contract managers can help their companies achieve expectations, keep their consumers happy, and seize future opportunities by carefully managing the facets of post-contract commitments and deadlines. Using these suggestions and insights, managers can successfully deal with complacencies and uncertainties of the contract.
Author Bio:
Qurat-ul-Ain Ghazali, aka Annie, is the growth manager at Contractbook and looks after all the organic channels. She has been with tech startups and scaleups for a couple of years with a B2B focus. You can find her socializing, traveling, indulging in extreme sports, and enjoying the local desserts when she is not working.