Contract Guides: The Key to a Smooth Contract Implementation

A good contract guide

Congratulations! You have had a successful sourcing event! Now, proper fulfillment of the contract is crucial to realizing the full value garnered through the procurement process. Understanding the legal terms of a contract and how they translate into the real-world delivery of goods and services can be challenging and time consuming. One solution to aid the hand-off from procurement to the business unit is creating a clear contract guide to reduce the ambiguity.

A good contract guide can simplify an otherwise confusing document with a few key elements:

  • Section Number: Major section numerical identifier
  • Document Page Number: On which page the section is located within the document
  • Section Description: A very brief overview of the section in simplified, non-legal language describing the purpose and/or impact of the section on the business arrangement
  • Key Words (optional): Any number of key words that may help in searching the guide for applicable entries
  • Section Notes: Any additional information that may be useful to the business unit
  • Master Contract References (for Attachments and Exhibits only): The section number of the main contract clause which governs a clause in an attachment

Translating each major section and subsection into simpler language

When appropriate, this allows the business managers to have a quick and easy reference guide to understand how each section of the contract and scope of work impacts their operations and finances. When a question about the contract inevitably arises, it will be nearly effortless for the business manager to use a well-written contract guide to find the section of the contract in question and understand its implications.

Training business managers on a new contract

This can be a challenge not only for the business unit but for the procurement and legal teams responsible for the training. A well-written contract guide also dramatically simplifies the training and education process by functioning as a clear and ready-made agenda for your implementation training sessions. Business units are much more apt to engage with the clear, table or chart-like format of a contract guide than the often dense and complex text of a lengthy contract. They won’t only be able to better understand the contract, they’ll also be much more likely to identify areas where they need clarification. It’s a true win-win for trainer and trainee alike.

The next time you are looking down the barrel of a complex contract implementation, consider taking the time to create a well-written contract guide to make sure your  sourcing work hits its value targets and continues to build up your credibility as a trusted partner within your company or with your clients.

Interested in learning more from ProcureAbility experts? Click here to visit our whitepaper library.

Start typing and press Enter to search

Return_to_StabilityArtificial Intelligence and Blockchain - where should you start image