Create a 3 page essay paper that discusses CMG490 MOD 1 CA: Capstone Course in Contract Management.
However, in most of the instances, it has been noted that companies fail or rather provide insignificant consideration towards the effective management of contracts and subsequently have to witness various risks hampering the regular business activities in these companies (IBM, “Contract Management — A Strategic Asset”).
The discussion intends to focus on the benefits of Contract Lifecycle Management (CLM) solutions for modern day organizations. With this concern, it will also explain road map which is intended to accomplish the purpose of the study, i.e. to obtain a comprehensive understanding of the CLM solutions in case of modern day business context.
Similar to every management tool or document, contracts are also learnt to go through several phases signifying its life cycle. Notably, the instigation of contract life cycle happens with the formal documentation and signature of the engaged parties deciphering their concession to the specified norms in the written form, i.e. the contract. This is regarded as the conception and creation stage. In the conception and creation stage, both the parties communicate about their desired objectives which they wish to accomplish through mutual understanding and collaboration. The desired objectives are often made open by an agreement between the two parties or through a letter of intent. After the objectives have been identified and mutually settled, contracts are formed which includes the procedure of words formation based on the association of both parties (Saxena, 12-13).
Next is the collaboration stage. In this stage, rights and responsibilities of each participant i.e. the engaged parties to the contract, are discussed where different articles and clauses of managing risk situations, tax liabilities, and legal issues among others are often included for the approval of the contract. The collaboration stage is