Successful contract management requires attention to detail and the ability to process information. The STAR strategy involves systematizing, tracking, evaluating, and recognizing. Managers should create a repeatable process, monitor targets, deliverables, and costs, establish close relationships with project stakeholders, and recognize red flags before they occur. Requests to change the contract should be made before a crisis occurs.
Contract management is a fast-paced process that requires attention to detail and the ability to process information from various parts of a project to ensure contract requirements are met. Some of the best strategies employed by successful contract managers can be summarized as Systematize, Track, Evaluate and Recognize (STAR). Using some of the strategies that fall into these categories will simplify administration and help a contract manager avoid the more obvious pitfalls.
Managers should systematize contract administration. Create a unique system using a custom database for detail management or purchase a commercial contract management software package. All relevant documents must be filed in both electronic and paper formats. Find a convenient way to link contacts and correspondence to the appropriate contract. The goal is to create a repeatable process for contract administration that can be used in various circumstances and by different people.
Targets, deliverables and costs should be monitored specifically. These three categories are the crux of contract management. Milestones should be noted as events on a calendar with reminder reminders. Deliverables should be defined and tracked using a reporting system that collects information from employees working on the project and summarizes it in written evidence that the deliverable has been met. Costs should be monitored and brought into line with the project budget as frequently as possible.
It is also important to make in-person assessments of the status of the project in relation to the contract. Establishing close relationships with the project manager and key employees assigned to the contract can make them more inclusive in being truthful about the status of the work. Site visits should also be conducted to provide a method for confirming the status of the project. Professional and consistent communication with all project stakeholders, especially senior management and customer contacts, will help ensure that everyone has a clear understanding of the status of the project. It is usually helpful to create a project update or newsletter that is circulated on a regular basis.
All projects have the ability to go off the rails and the key is to recognize it before it happens. With a good contract management system in place, red flags relating to milestones, deliverables and costs will start to appear. If relationships with line personnel are strong, rumors of problems on the ground will spread. Any concerns should be incorporated into the regular communication flow and management should be informed. All contracts have a procedure in place to deal with unforeseen circumstances and requests to change the contract should be made before a crisis occurs.
Protect your devices with Threat Protection by NordVPN
