What is the primary purpose of contract management?

The primary purpose of contract management is to ensure that all parties fulfill their contractual obligations. This involves overseeing the entire contract lifecycle, from the initial drafting to the execution and all the way through to contract closeout. Effective contract management helps to ensure that the terms of the contract are met, which is essential for maintaining good business relationships and achieving the intended outcomes of the agreement.

This process includes monitoring performance, managing changes, and addressing any disputes that may arise. By focusing on the fulfillment of obligations, organizations can ensure they receive the benefits stipulated in the contract and mitigate risks associated with non-compliance or misunderstandings. This holistic approach to contract management not only protects the interests of the parties involved but also contributes to the overall success of the project or service being contracted.

While ensuring compliance with legal regulations, creating standard contract templates, and negotiating better terms are important aspects of contracting, they are secondary to the ultimate goal of ensuring that all contractual obligations are met.