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Managing Contractual Obligations

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Managing Contractual Obligations

Abstract

Managing contractual obligations may not sound very exciting, but it has huge implications on a business. When a working relationship is set up – for instance, between a supplier and a customer – they agree the parameters: the ‘ought to’, ‘must do’ and ‘should do’ elements, which are then documented in a contract or agreement in one form or another.

Since Gartner estimates that 60-80% of all business transactions are governed by these agreements, we can safely assume that contractual obligations play a significant role in defining the way most organizations work with third parties. In other words, contracts – and in particular, contract obligations – are at the very heart of an organization and will have a direct impact on performance, compliance and profitability.

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