How to Master the Contract Approval Process
The contract approval process can be a make-or-break moment for a company when it comes to contract management. If the process isn’t handled professionally, it can lead to wasted time and money and missed opportunities. However, if mastered, it can help your business save time and money while ensuring that all contracts are approved on time.
What is the contract approval process? How is it interconnected with other contract processes?
To begin, let’s define what the contract review and approval process is. The contract approval process is the step in contract management where a proposed agreement is analyzed and approved for use by the organization. A manager or committee typically oversees the process, and it involves reviews of the terms of the agreement and approvals from different areas of the company.
This process can be interconnected with other contract processes in a few ways:
- It often precedes the negotiation process, as negotiations cannot begin until an agreement has been approved.
- It may follow the contract signing process if additional approvals are needed after the finalized agreement.
- It can be intertwined with other post-signature processes such as performance management or dispute resolution.
The contract approval process is preceded by contract creation and negotiation, followed by contract implementation. Remember, contract management is a sequential process that flows like this:
– Contract Negotiation
– Contract Approval
– Contract Management
– Contract Implementation
– Contract Closure
What does the contract approval process flow include?
The contract approval process workflow typically includes the following steps:
Review of the contract by a supervisor or manager
The first step in contract acceptance is for a supervisor or manager to review the contract. This person will need to ensure that all the necessary information is included in the contract and that it complies with company policy.
Approval of the contract by a supervisor or manager
Contracts often require the approval of a supervisor or manager before they can be executed. This is to ensure that all legal and financial requirements are met and protect the company from any potential liabilities.
Submission of the contract to an authorized person for signature
Once the contract is complete, it must be submitted to an authorized person for signature. The authorized person is usually someone in a management or executive role, depending on the company’s structure. As part of the submission process, you’ll need to provide a cover sheet that includes:
-The contract number (if one has been assigned)
-The name of the contracting company
-The date the contract was created
-A brief description of what the contract covers
Receipt of the signed contract and final approval
Once signed and dated, the contract is legally binding, and ownership of the intellectual property (IP) transfers to the buyer. As soon as you receive the signed contract, notify your team so that they can begin working on fulfilling the order. The last step in the approval process is for a manager or supervisor to give final approval.
It’s essential to make sure all of the details in the contract are correct and reflect what was agreed upon before signing off. Once everything has been checked, send it for final approval with a quick email noting that you’ve received the signed contract and what needs to be done next. This will keep everyone on track and avoid any misunderstandings.
Now that you understand how to master the contract approval process, you can confidently handle any order and ensure that your business runs smoothly.
Tips for streamlining the process
- Organize your contracts (better in a searchable, centralized digital hub)
The best way to make sure the contract approval goes as smoothly as possible is to have everything in order at the right time. Have all of your contracts uploaded and organized in a searchable, centralized digital hub. This will help you and your team find the correct document quickly and easily, without any fuss.
Consider using contract management software, such as Parley Pro, if you are looking for a great way to organize your contract approval process. Parley Pro allows you to manage all of your contracts in one place, making it easy to find what you need without any hassles.
- Create templates for standard contracts
Another way to speed up the contract confirmation process is by having pre-made templates in your contract approval solution for the most common types of contracts. This will eliminate the need for your team to spend time re-creating a contract from scratch and will help ensure that all contracts are formatted correctly.
- Use checklists
A checklist is an excellent way to ensure that nothing gets missed during the contract confirmation. Having a contract approval checklist can also help ensure that all stakeholders have had their say in the process and that no steps are skipped.
- Collaborate with colleagues in real-time
To avoid any holdups, everyone involved in the contract approval process must have access to the most up-to-date information. By collaborating with colleagues in real-time, you can avoid miscommunications or delays.
- Appoint one central contact for approvals
One way to make sure things move along smoothly during the contract approval process is to appoint one central contact responsible for getting approvals from all stakeholders. This will keep everyone on track and ensure that no steps are missed.
There you have it, a comprehensive guide to mastering the contract approval process. By following these tips, you’ll be able to breeze through the process with ease and confidence. And remember, if you ever need help along the way, contract approval software like Parley Pro can help you manage your contacts in one place, making it easy to access what you need quickly and easily.
There is also other helpful software out there you can utilize, and they include:
-Binfire: An excellent all-in-one solution for project management, collaboration, and contract management.
-Capsule: A cloud-based CRM that is perfect for small businesses.
-G Suite: The perfect option for businesses that need a lot of flexibility in their contract management process.
-Microsoft Dynamics 365: A comprehensive CRM system that offers excellent contract management features.
-Workfront: An excellent option for businesses that need a lot of control over their contract confirmation process.
-Zoho CRM: A popular CRM system that offers excellent contract management features.