Building your business and staying on top of managing contracts can feel like an impossible balancing act, especially when there are so many other demands on your time. If you don’t have the resources to do the job internally, you may be considering hiring an outside company to take over contract management and administration for your business.
If you’ve got a business that depends on making and managing contracts, it’s probably something that consumes at least some of your time. Depending on the size of your company, this could be as much as several hours or even an entire day each week.
For many businesses, that’s time better spent elsewhere – like on research or sales – which means you might want to consider hiring an outside contractor to handle your contract management needs in exchange for a flat fee.
However, there are some things you should keep in mind before signing the dotted line with contract management consultants.
Fact #1: Thinking beyond paperwork
Sprint contracts are the most common type of contract. These contracts are often used in industries where there is a lot of uncertainty such as construction, manufacturing, and healthcare.
The standard sprint contract outlines the scope of work and any materials that will be needed, deadlines and penalties for not meeting them, milestones, who is responsible for what tasks, who supplies what resources, and how disputes will be resolved.
Contract management companies can help make sure you get everything right by providing an experienced team that can focus on your specific needs.
Fact #2: What are your goals?
When selecting a contract management company, it’s important to think about your goals and decide what’s important to you. Some people are looking for the lowest price while others want the best customer service.
Still, others will only work with companies that offer insurance in case of contract disputes. The best way to figure out what you’re looking for is by asking yourself questions like these:
- What level of customer service do I need?
- Do I need my contracts reviewed before they’re signed?
- What should happen if we have an issue with our contractor?
Fact #3: Understanding How They Work
One of the most important factors in determining which company you choose is how they work. Understanding how they work will help you gauge how well your needs and expectations are met.
For example, some companies offer a higher level of service for more money, while others do not charge an hourly rate but instead take a percentage of the contract’s value. Ultimately, it’s up to you what works best for your business and budget.
As you’re conducting your research, consider how each contract management company works. Some of them take an hourly rate while others offer a flat-fee approach. Knowing which one will work best for your business will help you decide which service to choose.
It can also be helpful if it comes time to negotiate a quote with one of these companies because you can then be able to determine whether they’re being reasonable or not. Even if their initial offer is more than what you want to pay, you may be able to bring that price down by offering fewer hours for them, for example.
One factor that should definitely influence your decision when choosing a contract management company is its size and scope.