Managing Contract During the Crisis

The Coronavirus or the COVID-19 Crisis has changed the world in a few months. Booming businesses and busy industries had had to stop their operations in light of the virus spread. The majority of the workforce were dictated to work from home while many others had to lose their jobs due to the complete shutdown. The COVID-19 outbreak also caused mass revisions and renegotiations in the contracts due to the onset of Force Majeure of contracts. Such a monumental crisis falls on the shoulders of the contract managers who will be required to sort out and coordinate to maintain order.

The companies will have to henceforth, prepare a fail-proof plan for managing the contract through, and after the crisis. Managing the contracts during the crisis includes, monitoring the waivers, revising on the obligations, discounting on the penalties on the failure of missed obligations, and the future provisioning for contracts and its compliance.

Click here to read The Benefits Of A Contract Management Software In The Pandemic Stricken Period

1. Primary Level

   At the primary level, the companies should focus on tackling the immediate problem of product flow. The COVID-19 outbreak initiated a sequence of complete lockdown across nations which on the other hand gave rise to problems such as mass panic buying of products and more. With supply chains affected, it became increasingly difficult for retail businesses to procure goods and services and maintain contracts accordingly.

   It advisable for the companies to negotiate the contracts in such a way that provisions for the periodical inflow/outflow of products and services are duly made. With a sturdy Contract Management Software, companies can easily follow up on the amendments and provisions made to the contracts efficiently. There will be several such revisions and provisions during the crisis period, hence with the help of good software, the contract managers can easily keep a track of the alterations.

2. Secondary Level

   To maintain business continuity, companies need to formulate a current plan. It is essential to agree upon the terms and conditions with suppliers and clients before regular business resumes. For a seamless transition, the business needs to,

   • To maintain business continuity, companies need to formulate a current plan. It is essential to agree upon the terms and conditions with suppliers and clients before regular business resumes. For a seamless transition, the business needs to,
   • Check on the current commitments included in the contract and make provisions for a future transition.
   • Discuss the risk involved in the business with the partners and agree upon the terms to avoid friction.
   • Apply clauses to the contract on the period of waivers and when such waivers will be amended.

   Click here to read Tips to Reduce the Impact of Coronavirus Pandemic on Contracts

3. Tertiary Level

   Formulating a long term plan on building back the lost time and financial resources due to the COVID-19 spread with a dependable contract lifecycle management software. The long term plans should include,

   • The involvement of business partners spread geographically to ensure smooth trade without any disruptions.
   • Including provisions for renegotiation in the contract
   • Make coordination and communication better by utilizing the tools of contract management software.
   • Briefing about the risks related to the crisis and engage in crisis management with the partners for better contract performance.
   • Briefing about the risks related to the crisis and engage in crisis management with the partners for better contract performance.

   It is reported that companies with standard CLM software are able to manage and respond to the contract during the crisis period with efficiency and relatively lower impact than the companies without a contract management software.

Manage contracts and have complete control over the performance of the contracts during the crisis period with DocuCollab. Click here to learn more..