A contract management plan is a write-up or confluence page that outlines the processes and procedures of how your startup company will manage its contracts effectively. The plan defines who is in charge and the responsibilities of the team for contract management, it also establishes procedures for contract negotiation, drafting, execution, and monitoring, and sets out the tools and systems used to manage contracts.
For any startup company, having a contract management plan is useful to ensure that things don’t fall by the wayside and that it can manage its contracts effectively and efficiently. Here are some of the key components that a contract management plan should include:
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Roles and Responsibilities The contract management plan should clearly define the roles and responsibilities of team members involved in contract management. This includes identifying who will be responsible for contract negotiation, drafting, review, approval, execution, and monitoring.
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Contract Types and Templates The plan should specify the types of contracts the startup company will use and the templates it will use for each type of contract. This ensures that contracts are consistent and include all necessary terms and conditions.
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Contract Approval Process The plan should outline the process for approving contracts, including who has the authority to approve contracts and what approvals are required.
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Contract Monitoring and Reporting The plan should specify the tools and systems the startup company will use to monitor contracts and track key contract terms and milestones. This ensures that the company is aware of key contract events and can take action when necessary.
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Contract Renewal and Termination The plan should specify the procedures for renewing and terminating contracts. This ensures that the company can manage contract renewals and terminations effectively and promptly.
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Contract Dispute Resolution The plan should include procedures for resolving contract disputes, including mediation, arbitration, and litigation. This ensures that the company can manage contract disputes effectively and minimize the risk of litigation.
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Training and Education The plan should specify the training and education requirements for team members involved in contract management. This ensures that team members have the knowledge and skills necessary to manage contracts effectively.
In summary, a contract management plan is a critical tool for a startup company to effectively manage its contracts. By defining roles and responsibilities, establishing procedures, and setting out tools and systems, the plan ensures that the company can manage its contracts efficiently and effectively, minimize the risk of contract disputes, and maximize the value of its contracts.
Who implements contract management work in a startup?
The Deal Desk function is usually who is responsible for managing and executing the sales process within a startup company. It is responsible for reviewing and approving deals and contracts, as well as ensuring that all necessary approvals are obtained from stakeholders within the company. As such, the Deal Desk is ideally positioned to implement the contract management plan within a startup company.
An Example Contract Management Plan
Here is an example contract management plan for a startup company:
Roles and Responsibilities
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The CEO is responsible for overall contract management strategy and oversight.
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The CFO is responsible for the financial aspects of contracts, including budgeting and payment terms.
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The software lawyer or in-house lawyer is responsible for legal aspects of contracts, including contract negotiation and dispute resolution.
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The Contract Administrator is responsible for the day-to-day management of contracts, including tracking and reporting.
Contract Types and Templates
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The startup company will use standard SaaS contract templates for contracts including Non-Disclosure Agreements (NDAs), Service Agreements, Employment Agreements, and Sales Agreements.
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The templates will include all necessary terms and conditions, including payment terms, deliverables, and termination clauses.
Contract Approval Process
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All contracts must be reviewed and approved by the software lawyer and the CEO before execution.
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Contracts must be signed by authorized signatories.
Contract Monitoring and Reporting
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The startup company will use contract management software to monitor and track contract terms and milestones.
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The Contract Admin will be responsible for maintaining up-to-date contract records and generating reports as necessary.
Contract Renewal and Termination
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The startup company will establish a process for contract renewal and termination that includes advance notice to all parties.
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Renewal or termination of contracts must be approved by the General Counsel and the CEO.
Contract Dispute Resolution
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The startup company will use mediation as the primary method for resolving contract disputes.
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If mediation is unsuccessful, the company may use arbitration or litigation as necessary.
Training and Education
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All team members involved in contract management will receive training on contract management policies and procedures.
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The General Counsel will provide ongoing education on legal issues related to contract management.
This contract management plan outlines the key components necessary for effective contract management within a startup company. By clearly defining roles and responsibilities, establishing procedures, and setting out tools and systems, the company can manage its contracts efficiently and effectively, minimize the risk of contract disputes, and maximize the value of its contracts.
