Contract management An introduction

Contracts form an integral part of strategic sourcing in modern supply chains. They bind people, customers, suppliers and organisations into a coherent working relationship whereby goods and services are exchanged in a mutually agreed framework. Contract management introduces the basic legal aspects of contracts, and the management principles of planning, organising, directing and control as an approach to managing them. Contract management explains the importance of managing the content of the contract as well as the contracting process so that unnecessary problems can be prevented and, as a result, important relationships can be maintained.