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Companies are grappling with increasingly large volumes of contracts generated by both buy side and sell side activities. Contract Lifecycle Management (CLM) must deal with disparate contract workflows throughout buy, sell, operational, and legal functions, as well as the challenges inherent in managing contracts across stakeholder, demand, and supply activities. 

A successful CLM model will leverage best practices to analyze needs, priorities, and document requirements – while developing solutions to address areas of non-compliance that have been identified. Proactive Contract Administration, as part of CLM, is critical to realizing the full value generated by your supply chain management function.

Nearly 65% of enterprises surveyed reported that Contract Lifecycle Management has reduced exposure to financial and legal risk when properly administrated.

Source: Aberdeen Group

Applying an Auditor’s Lens 

Revenew’s proactive approach to Contract Administration is unique as we apply an auditor’s lens to Contract Compliance Reviews. Our method includes:

  • Contract Language Risk Assessment to implement industry-leading language and commercial terms while minimizing exposure to risk
  • Contract Scorecards to regularly monitor and communicate performance
  • In-depth invoice reviews which identify recovery opportunities in real time 
  • Assessment of contractor and subcontractor compliance to all contract provisions (co-employment, background checks, I-9 certification, safety, insurance/training requirements, commercial pricing schedules, and more)
  • Management Action Plans to ensure that corrective actions are being taken
  • Key Stakeholders Communication Plans to report on progress, gain support for implementing corrective actions (change management), and provide direction on areas of focus

The Role of Contract Administration

Diligently-managed contracts dramatically reduce non-compliance, identify leakage early, eliminate errors going forward, and accelerate ROI – in many cases capturing millions of dollars in lost savings. Involving all key stakeholders ensures that these significant results are achieved with no impact on project schedules.