Many organizations have a single team that handles both\ncontract administration and contract management. Many startups and small\ncompanies have a single individual who handles both processes. Because of this,\nit\u2019s easy to think that contract management and contract administration\ndescribe the same actions and processes. \n\n\n\nHowever, there are important technical differences between these two processes. Contract administration is concerned with the state of the agreement between the two parties in the period before the contract has been finalized.\n\n\n\nContract management is focused on the implementation of the\ncontract after it has been finalized. \n\n\n\nEach process has its own workflow and role in the contract\nprocess. \n\n\n\nWhat a Contract\nAdministrator Does\n\n\n\nA contract administrator is responsible for the planning,\ndrafting, and closing of the contract process. Often a contract administrator\nwill start by issuing requests for proposals (RFPs) to potential vendors or\npartners. \n\n\n\nThe contract administrator is responsible for figuring out the\nactual terms of the contract. Some common details that a contract administrator\nwill oversee in the drafting of the final agreement include:\n\n\n\nDelivery datesPayment disbursement datesHow to measure each side\u2019s performance of the\ncontractAutomatic renewal clausesDefining what a material breach of the contract\nis\n\n\n\nThe contract administrator will work with the representative\nof the vendor to finalize the contractual language and to deal with any\nrequested revisions. \n\n\n\nOnce the contract is signed, the contract administration work is over, and the contract management process begins. \n\n\n\nGet online in minutes, implement in hours, realize ROI in weeks! Easy-to-use, helps you increase productivity, contracts & revenue. Available anywhere, anytime & on any device.Try a Free Demo today!\n\n\n\nWhat a Contract\nManager Does\n\n\n\nA contract manager works to make sure the organization honors its obligations under the contract and monitors the other side\u2019s level of compliance. \n\n\n\nContract compliance is about much more than just on time payments and shipments. A contract manager will ensure that partners have everything they need to fulfill the contract.\n\n\n\nDo you want to Win at Contract Management? Schedule Live 1 on 1 Demo.\n\n\n\nIf the organization makes a product and contracts with\nretail partners to sell the product, the contract manager will need to make\nsure the retail partners have all of the signage and marketing display\nmaterials they require. The contract manager may also need to arrange education\nsessions for salespeople.\n\n\n\nOne of the biggest challenges of contract management is when\ncircumstances change. Sometimes the parties will need to modify the contract\nbecause of a change in the law or the market. It is the job of the contract\nmanagement team to negotiate and finalize any modifications. \n\n\n\n\n\n\n\nAreas of Overlap\nBetween Contract Administration and Contract Management\n\n\n\nWhile smaller organizations may see contract administration\nand contract management as the same thing, larger organizations are vulnerable\nwhen they place too much separation between these processes.\n\n\n\nContract managers will often be in regular contact with\ncontract administrators. They will want to make sure they understand the intent\nof the language in the contract. They may also need to know details about the\noriginal negotiation if the deal needs to be modified.\n\n\n\nBoth contract administration and contract management are\nfocused on making sure every agreement with an outside company proceeds as\nsmoothly as possible. Nobody wants to get tangled in litigation.\n\n\n\nThe best business practice for companies of any size is to\nbe clear that contract administration and contract management are separate\nprocesses, even if the same personnel are handling both. As companies grow, it\nis also vital that there are open channels of communication between the\ncontract demonstration team and the contract management team.