Vendor validation and selection
The vendor has the right to validate all the bids come from the different bidders and select the best among them that is cost-effective. The best bidding company should be selected that commit timely completion of the project with efficiency.
Contract creation is the first step of contract management. Creation of the contract includes defining the scope of the contract, process definitions, the consent of the parties, selection of software tool etc.
It is the process definition that includes for what exactly is the issue the parties are coming together. It requires the consent and consideration both the parties. The agreements or strategies are not permanent, they can be changed in the near future in the process of contract management.
A contract management manages the contracts, services level agreements and procures master agreements. They set out prices and service levels, terms of supplier relationship. A contract management can be a third party that ensures the company risk of the performing vendor. The contract management comprises certain features:
- It stores the company’s standardized contracts.
- It showcases prices and budgeting for each product line and vendor.
- Ensures compliance monitoring
- Agreed to deliver schedules and keep tracking order.
- Creates calendars that include milestones that vendors should meet.