What's the most important steps of Contract Management?

Invitation to bid.

Bid evaluation.

Award of contract.

Contract implementation.

Measurements of work completed.

Computation of payment.

Contract lifecycle management succeeds when the creation and execution of a contract maximizes operational and financial performance and minimizes risk. Although success equates to effective contract management procedures throughout the entire contract lifecycle, The Chartered Institute of Purchasing and Supply says pre-award activities are the most important for determining how effective contract management will ultimately be. Because of this, a focus on eight behind-the-scenes effectiveness assurances can set the stage for a successful outcome before a contract is ever awarded.

Business Case and Management Approval

A business case that defines a purchasing need, shows how a proposed contract can meet that need and addresses critical issues forms a solid base for effective contract management. Issues the business case addresses includes the desired outcome, critical success factors, purchase risks and a list of alternate solutions, potential ramifications and a timeframe for contract completion. The business case becomes a contract management tool referred to throughout contract execution that helps to ensure the intended outcomes and benefits are realized. Management approval signifies a commitment from the business owner or management team and is essential for pre-award activities to move forward

The Contract Management Team

Assembling the right combination of contract management team members ultimately determines how effectively the contract will be managed. Draw team members from a cross-section of business departments, including but not limited to human resources, marketing and sales, finance and legal. Team members should be selected according to the scale, nature, complexity and significance of the proposed contract. It’s essential that each team member not only has the necessary technical knowledge but also possesses good communication, negotiation and cooperation skills.

Strategy Development

Strategy development incorporates steps four through six of effective contract management. Step four defines the process the team will follow in receiving and awarding bids. Step five assesses and addresses potential risks by establishing criteria for measuring and correcting supplier performance. Performance criteria prevent problems such as unsatisfactory performance, low quality or delivery from becoming major issues. Step six identifies the business’s responsibilities during the award process and during contract execution and sets guidelines for managing contract execution.

The Contract Management Plan

The final two steps in effective contract management involve the creation of the management plan and pre-qualifying suppliers. While putting the plan together is defined as a separate step, in reality it’s a work product that results from each previous step. The format of a contract, which can range from simple to complex, depends on information contained in the business case and contract strategy development steps. Pre-qualifying potential suppliers prior to placing invitations to bid ensures only those suppliers able to adequately fulfill the terms of the contract are eligible to bid. This final step expedites the award process and makes it easier for the management team to effectively manage the contract.

Time bound, Cost Effective. Qualitative

Perfect documentation mainly the stipulations, quality requirements and time span.

Make sure of adequate infrastructure, seasonal variations and government policies.

Words and Deeds should match.

Agree with answer given by Mr. Vinod Jetley

The steps of contract management may be divided into:

Compliance

Schedule

Quality

Delivery

Payment

Concur with Mr. Vinod Jetley's answer

Agreed with Mr.Verindavan & Mr.Jetley answers.

Thanks mr. Jetley

the part of managing  an operational contracts includes:

1-managing the delivery of service( tools like(SLA,Quality,baseline)(Evaluation metrics).

2-Managing the relationship between parties( Excellent Communication,Mutual Trust,Joint approach).

3-Managing the formalities including contract document.(Keeping record of cost-ordering procedure-Payment process-Budget process-resource Planning-Management reporting.

4-Addressing Change requirements(Change to performance metrics.Change service,change to work load

5-Improving Standard

1. Specifying Battery Limit (Scope) of each contractor for a single contract.
2. Evaluation of contractor on the basis of their Team Strength, Expertise in scope (OEM support) and Past Experiences along with any running such contract.Contractor can take care of Legal & compliance issues. Their Financial status & Payment terms.
3. Analyzing risk related with each contractor.
4. Its better to keep minimum no. of contractor 
5. Warranties should be in line with completion of project within scheduled time of closure of contract.

Evaluation of Bid