FAQs

What is contracts management?

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• Contracts management is the process of managing all aspects of contracts made or received by an organization. This includes creating, reviewing, negotiating, executing, and enforcing contracts in an efficient and effective manner to maximize financial and operational performance.

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Why is contracts management important for a small or mid-sized business? 

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• Contracts management is crucial as it helps to ensure that contracts are legally sound, adhere to company policies, meet business needs, and are managed efficiently. Good contracts management can reduce legal risks, prevent losses, and improve relationships with clients and suppliers.

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What is procurement? 

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• Procurement is the process of acquiring the goods and services a company needs to fulfill its business model. It involves activities like identifying needs, sourcing suppliers, negotiating prices, signing contracts, and managing relationships with suppliers.

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How can I ensure that my procurement process is efficient?

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• Efficiency in procurement can be achieved by standardizing processes, leveraging technology, maintaining good relationships with suppliers, regularly reviewing and renegotiating contracts, and tracking key performance indicators.

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What is a good contract lifecycle management (CLM) system for a small or mid-sized business?

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• A good CLM product should provide basic features like document storage, task management, reminders for key dates, easy access to key contract details, and security features. Sentinel can assist with providing additional recommendations based on your specific priorities and needs.

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How can I minimize risk in my contracts?

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• At a minimum, best practices to minimize risk should include ensuring contracts: 1) are reviewed by a legal professional prior to services beginning and/or goods being shipped; 2) contain clear terms and conditions, particularly with respect to the scope of work, delivery timelines, and payment terms; 3) clearly outline each party's responsibilities and obligations; and 4) include provisions for dispute resolution and include termination clauses.

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How can I get the best deals from suppliers?

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• Building strong relationships with suppliers, negotiating effectively, buying in bulk when appropriate, and regularly reviewing contracts to ensure they're still competitive can help you get the best deals.

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Should I always go for the cheapest supplier?

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• While cost is important, it's not the only factor to consider. The supplier's reliability, quality, delivery times, and service should also be taken into account. A supplier that provides good value, not just the lowest price, can be a better choice in the long run.

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How can I handle a contract dispute?

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• Start by reviewing the contract and discussing the issue with the other party to seek a resolution. If this fails, you may need to use the dispute resolution method outlined in the contract, such as mediation or arbitration. Legal advice should be sought if necessary.