Contract process

Contracts must be checked legally and technically as part of a company-wide contract management process. For this purpose, possible risks must be identified and evaluated in each phase of the contract life cycle.

According to a general definition, a process is a cross-functional, reproducible sequence of activities with defined interfaces (to other processes) and responsibilities.The goal definition is to ensure smooth cooperation in the sequences and a target-oriented flow of information within the company.This goal is implemented organizationally by a cross-departmental process responsibility with defined tasks.

The following text describes the first part of a contract management process in an eEPK diagram (extended event-driven process chain). Steps 1-4 of the contract initiation process include the first part of the DOCM contract management process. Stages 5-8 comprise the second line of the active DOCM contract management process with review of the agreed deliveries and services and monitoring of the contract end date.

The process communication takes place on the basis of a rule-controlled DOCM e-mail dispatch to a defined SharePoint group "Contract Manager". The trigger is usually a missed deadline of set resubmission dates. If a processor uploads or changes documents to the contract partners or contracts, an e-mail is sent to the "Contract Manager" group.

As early as the contract initiation phase, draft contracts must not only be examined according to formal legal criteria, but also assessed with regard to the risks inherent in each contract. As some cases in recent years have shown, early examination and evaluation in the run-up to a contract would not have given rise to problems in the "final phase of contract negotiations".