Contract management encompasses more than just handling the day-to-day administrative logistics of notices, claims, and communications. It ensures that all contract obligations are met and rights enforced, and can ultimately generate cost savings and enhance the overall execution of a project. Nevertheless, the impact of efficient contract management is often overshadowed by the focus on contract negotiations and disagreements.
Contract management is essentially relationship management. The dynamics between contract parties profoundly influences the success of a project and the potential for future collaborations. These connections are crucial, both organisationally and personally, especially when team members are working closely together for extended periods of time. This intimacy can sometimes hinder claims submissions or responses for fear of disrupting the establish rapport. However, this should always be considered alongside the repercussions of any contractual non-compliance.
Equally, effective contract management is not about being combative, but rather working as a collective to uphold the mutually agreed terms. The key word should be ‘balance’. There are a number of ways parties can mitigate the impact of potential disputes and enhance the prospect of a good working relationship:
- Prioritise open discussions before formal notifications to foster alignment;
- Craft communications echoing the contractual language, maintaining respect and clarity;
- Proactively identify and address any risks or concerns;
- Ensure precise language
Effective communication is crucial. Consistent contract management is essential. Recognising the symbiotic nature of contract and relationship management is paramount in achieving enduring project success and fostering lasting partnerships.
