Contract Management

Proper contract management is crucial to the success of order and project management. In this article the aims, content and methods of contract management will be shown from the supplier’s viewpoint. The article follows the course of the project over time and identifies the four phases of contract management: the drawing up of the bid, negotiation, execution, and analysis. The contract management function faces specific challenges in each phase. Drawing the bid up primarily involves translating the business model into a contractually meaningful form. In the negotiations the practicability and profitability of the business model must be safeguarded. The execution phase primarily involves securing and increasing profitability. Finally, the analysis enables “lessons learned” to be established for future business operations. This chapter puts forward strategies for mastering these challenges. Thus the aim is to show what has to happen on a contractual level in order to make the project contract a success.