A Contract is an agreement that binds two or more parties while having a transaction relation. In the context of Contract Management, such documents are created to govern leasing activities, Warranty, Support, and Maintenance. Contract is created with a third party Vendor with single Vendor only, and it contains important information related to price, validity period of the Contract, Contract Type, and Sub-Contract Status.
Contract Management is the practice of managing the life-cycle of contracts. The creation, execution and analysis of the contracts exists to maximize the operational and financial performance of an organization, and minimizing the financial risks.
A contract governs the commercial relationship between two organizations through terms and conditions. Contracts have a large impact on the revenue and expenses of an organization. When the Effective Contract Management creates powerful business relationships when managed correctly.
Contract management group has the options that are specific to customize the contract module. It has following features:
- Contract Types: The contract type serves the purpose of giving you a generic umbrella term for every contract for managing purpose.
- Contract Custom Fields: These are the fields required to maintain the contracts of an organization.