Contract and Contract Management...

Contract and Contract Management  Contract is defined in short as an agreement between two or more parties enforceable under the law. A contract is a legally binding agreement between the parties identified in the agreement to fulfill all the terms and conditions outlined in the agreement. A prerequisite requirement for the enforcement of a contract, amongst other things, is the condition that all the parties to the contract accept the terms and conditions described in the contract. Historically, this was most commonly achieved through signature, but in many jurisdictions Рespecially with the advance of electronic commerce Рthe forms of acceptance have expanded to include various forms of electronic signature. Party/parties awarding the contract are known as the purchaser or employer. Party/parties agreeing to execute or perform the contract are known as the supplier or contractor. Contracts are of several types. They are normally classified as supply contracts, service contracts, management contract, transport contract, sales contracts, purchase contracts, design and engineering contract, training contract, maintenance contract, civil contract, and erection contract etc. Contract life cycle management is defined as the process of systematically and efficiently managing contract creation, execution and analysis for maximizing operational and financial performance and minimizing risk. Contract management life cycle is shown in Fig 1 Fig 1 Contract management life cycle  A contract life cycle has two distinct phases namely pre signing phase and post signing phase. The pre signing phase consists of activities before the signing of the contract. The activities in this phase are dominated by the purchaser/employer. There is no supplier/contractor in this phase but there are bidders. One of the bidders becomes supplier/contractor after the award/signing of the contract. The activities involved in this phase are identification and approval of a requirement, preparation of a...