Contract Management Key Terms

Understand contract management more fully by learning the lingo.

By J. Stoltzfus, writer/programmer LOCAL CITIZEN

Contract management tools allow for more automation in a contractual process: contractors can get paid faster, projects get done quicker and more documentation in databases leads to a better oversight. Learning about some of the key terms for contract management will help businesses utilize this kind of solution for daily operations.

Contract profitability

Contract profitability is the amount of revenue that businesses can expect from their contracts. Not surprisingly, estimating how profitable a contract will be for a company is central to most contract management tools.
Try: See examples of contract profitability tools for health care contracts at Concuity.

Document collaboration

This term refers to the collective input of parties into a single document or process. Various contract management tools help organize document collaboration into a formal, search-friendly context so that the input a party contributed is visible later.
Try: See more on document collaboration tools for contract management at InfoRouter.

Automated contract tracking

One feature of many contract management systems is automated contract tracking. Automated tracking features include built-in documentation for contracts which allow for less human oversight.
Try: See more on automated contract tracking in the construction industry on this page from the U.S. Department of Transportation.

User friendly software

"User friendly" defines how easy a software product is to use. Businesses should make sure that the contract management solution they purchase can be easily used by employees with differing levels of computer awareness.
Try: Get the definition of user friendly from Webopedia. Get options for user friendly contract management through the Project Management Software Directory online.

Compliance

One major role of any CM solution is to help a business adhere to the terms of the contract. Advanced features for contract compliance help companies avoid big liabilities.
Try: Read up on contract management for compliance with terms at AllBusiness.

Web based contract management software

Another very popular option is web based CM software. There are no boxes, no registrations and no installs. It is very handy for small businesses that are looking for a quick fix to contract problems.
Try: Learn more about web based software at Paul Graham.