Contract administration is an expertise within the procurement industry, yet the obligations allocated to a contract manager are extremely broad. Contract management has an impact on many aspects of a business, including its budget, operations, customer service, and public image. Procurement and contract management are essentially the same thing. Both contract management and procurement are terms used to describe the larger process of selling or buying something from another person. Software for project planning, scheduling, resource allocation, and change management is known as project management software. It can be used as an administrative system that allows project managers (PMs), stakeholders, and users to regulate expenditures and manage budgets, as well as quality management and documentation. Collaboration and communication among project stakeholders are also facilitated by project management software. Project management is mainly focused on managing projects and also ensures the development of projects. Contract management software and its contract lifecycle management tools are focused on binding an agreement between two parties in a written format. The project management’s main goal is to deliver the project on time and within budget, whereas the contract management’s main goal is to achieve mutual ground between the involved parties. Project management constraints are scope, time, budget, and quality as per contract, whereas contract management focuses on economical projects and manages claims and disputes against the contract. The key objective of project management is to predict issues, and the key objective of contract management is to create value for the organisation. Keep reading to learn more about the differences between contract management and project management software.
The contract lifecycle management software workflow is to create, collaborate, negotiate, sign, track, and renew contracts, whereas the project contract management is built with primary functions such as project planning, task management, document sharing and collaboration, and calendar and contact sharing.
Click here to read: What is Contract Management Software? – A Detailed Insight
Drafting contracts is a tedious task. A contract is created only when there’s a mutual involvement of two parties, and with the contract lifecycle management software, drafting of contracts is effortless. There is no room for manual errors because a contract that is drafted can miss a clause or terms in the contract, but the contract management software for salesforce ensures that there is no error. In project management, the project should be scheduled and planned for a seamless delivery. The project management software maps the project tasks and visually describes the tasks.
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Contracts are vital organisational agreements that involve a lot of people, so they’re frequently the target of internal collaboration. The contract management software makes the collaborations at ease because within the software you can negotiate the clauses and terms that need to be changed. And once the contract is ready, this software uses an automated approval process and sends the documents to the designated approvers. In project management, the sharing of documents for collaboration increases productivity through a centralised repository that is accessible by all the project stakeholders. The same process is processed with the contract management software, but the only difference is contracts.
The contract management software manages the contracts in terms of clauses and conditions and ensures that the documents are renewed on time. The project management software facilitates any bug or error in reporting, viewing, notifying, and updating stakeholders.
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The process of drafting, identifying, and reviewing contracts is made easier with contract management software. Reminders concerning renewals, deadlines, and payments are also sent. It’s vital to equip your firm with the latest tools and techniques to thrive in this digital-fueled era, and adopting redlining of contracts makes your negotiations move seamlessly. DocuCollab has industry-leading features that are suitable for enterprises of all sizes, with the best contract management software for small businesses. Click here to know more.