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Contract Manager: Job Description, Responsibilities and Salary

In order to be successful in every role within a contract process, as a contract manager, you must have a wide range of interpersonal and professional skills as well as a solid foundation of relevant expertise and certain innate personal qualities.

To help you find good contract manager candidates and make the right choice for your business, we have described in this article the key qualities, skills, and areas of interest required for a successful job in contract management.

What do you do as a contract manager?

Contract managers are for the various Stages of the life cycle of a contract responsible. They are involved in drafting, drafting and modifying contracts, following the process and supervising its execution. The overall goal of a contract manager is to ensure that the company gets the best possible results from every contract in the portfolio.

Simply put, a contract manager ensures that every contract your company has signed fully supports your business goals and meets the terms and obligations that the parties have agreed upon.

Why are contract managers necessary for law firms?

Contract managers work in a wide range of industries, but they are most commonly needed in law firms. Why Every law firm deals with contracts on a daily basis. Contracts are simply part of their business model.

Each company concludes a wide range of contracts and agreements with its employees, customers, partners and investors, from employment contracts and confidentiality agreements to distribution and procurement agreements. Each of these contracts requires Preparation and management of contract deadlines, signatories, payment/identification/company details, budgets, supplements, contract amendments, contract breaches and results. However, this is only a small part of the job description for contract managers.

What does contract management cover?

Contract management covers various aspects and functions. It involves drafting, negotiating, and reviewing contracts to ensure clarity and legal compliance. They also include monitoring contractual obligations, tracking performance and addressing any issues that may arise during the term of the contract. Another important task in this area is the timely renewal or termination of contracts.

What are the daily duties of a contract manager?

Contract managers act as a link between all parties involved in the execution of a new legal agreement, including companies, divisions, and employees. They serve as a central point of contact for all parties involved in the process and are ultimately responsible for ensuring timely execution, compliance with all regulations and secure storage of all contracts to be guaranteed throughout the company.

While the day-to-day duties of a contract manager vary greatly depending on the industry and size of the company, the following is an overview of the standard tasks associated with this position:

  • Capturing Business requirements for new contracts
  • Direct negotiation of Prices or insurance requirements
  • Managing the Contract library - securely store, organize, and retrieve all contracts
  • Review and exchange of Redlines between both parties while managing draft versions
  • definition the approval chain and documentation of the approvals of the individual internal parties
  • Tracking Renewal and expiration dates
  • Easement legal discussions on unresolved contract issues
  • Sending the completed contract for signing
  • Ensuring compliance with most important dates and conditions

What qualifications should a contract manager have?

Contract managers must have a wide range of skills as they work directly with many different departments. A thorough understanding of economics, finance, law, sales, procurement, and purchasing is an advantage, but there are also certain qualities that can help someone stand out in this position:

Advanced technical skills

A contract manager's ability to understand and adapt to technology will improve the quality of contract processes. Contract managers who are able to drive technological progress can ensure that processes and administrative tasks are constantly improved. They can motivate teams by introducing change, doing manual work Automation and digitization of contracts reduce and keep their department on an equal footing with other departments in the company.

Communication skills

As already mentioned, contract managers are responsible, among other things, for negotiating and drafting contracts, which means that they must clearly communicate the terms and conditions to the various parties. This requires a good command of written communication to ensure that clauses, obligations and expectations are correctly transmitted and that there is no room for misinterpretation.

Contract managers also often act as mediators between different teams or departments. They must efficiently share information between stakeholders and bridge gaps that may arise due to different perspectives, priorities, or even language barriers. Strong verbal communication skills enable them to formulate complex ideas concisely without diluting key messages.

Negotiating conditions, managing others, and Managing Workflows require strong interpersonal skills. A contract manager must be convincing, motivating and approachable. They must be able to communicate with everyone, from sales people to management levels, and they must be able to deliver under pressure.

Attention to detail

Contracts aren't easy to read, and anyone who's ever reviewed a contract knows how important it is to pay attention to detail. Contract managers must have the necessary concentration, patience, and a good eye to thoroughly review a complete legal document from start to finish and fully understand the terms set out in the agreement. It is crucial to be able to identify errors or undesirable provisions.

Organizational ability

A contract manager is not only responsible for new contracts, but also for renewing existing contracts. This results in a huge workload, which is increasing every year. Managing contracts successfully without being overwhelmed requires organizational skills to juggle dozens, if not hundreds of contracts at various stages of the contract life cycle. Contract managers should be able to quickly find contracts, plan important appointments ahead, and to keep negotiation and execution steps on track.

Resolving conflicts

  • Contract negotiations can take months or even years, and when large sums of money are at stake, the thoughts and feelings of the various parties involved can get out of hand. Contract managers must be emotionally intelligent as well as logical and reasonable. They can also face significant internal pressure to close contracts quickly, and they often need to make quick decisions while balancing risk management and time to market.

Risk management

  • Contract managers are the first line of defense when it comes to defending a company against legal risks. Contract managers must know exactly the company's risk tolerance and ensure that this is correctly reflected in all legal documents. Contract managers must be able to manage risk on behalf of the company, whether that's securing final approvals, negotiating specific insurance requirements, or simply understanding a company's reputation.

What is the salary range for a contract manager?

A contract manager's salary depends on a number of factors, including experience, education, certification, skills, negotiation skills, and references. The salary of a contract manager is also affected by the country or state in which he is applying for the job.

According to SalaryExpert, the average gross contract manager salary in Germany is 92,235€ or 44€ per hour. You'll also get an average bonus of €7,351. The average salary for an entry-level contract manager (1-3 years of experience) is 64,275€. On the other hand, a senior contract manager (8+ years of professional experience) earns an average of 114,664€. The position is linked to additional benefits and bonuses, which vary from employer to employer.

Source: SalaryExpert

What is the difference between contract manager and project manager?

Although contract managers and project managers have some things in common, the tasks of both professions differ and require different skills and training to be successful.

Project managers focus primarily on the planning, implementation, and completion phases of the projects assigned to them. They strive to achieve specified goals while meeting allocated resources, budget limits, and timelines. Essentially, these professionals work at the interface of activity coordination to ensure seamless teamwork while optimizing productivity using tools such as Gantt charts and critical path analysis.

In return, contract managers focus their work on relationships within the value chain. Their role, which is ongoing rather than limited by project deadlines, includes managing and enforcing contract terms between an organization and its suppliers/dealers/customers. In addition to complying with laws, they must also exercise financial prudence, which requires excellent negotiating skills and an eye for detail, particularly when it comes to clauses related to risk reduction, scope changes, or dispute resolution mechanisms.

While project managers can oversee multiple projects at any given time, each of which has its own milestones and deliverables that require their attention, contract managers build symbiotic alliances that often require impeccable relationship-building skills.

It is important to note, however, that in some cases, both functions may merge, particularly when a person has interdisciplinary skills and becomes a so-called “hybrid manager.” Such professionals have a wide range of expertise that combines elements from both areas and provides holistic support for organizational initiatives on both a tactical and strategic level.

Conclusion

Contract managers are critical to a company's success as they monitor and manage contracts throughout their entire life cycle. Hiring an experienced and knowledgeable contract manager ensures that all of your company's contracts are completed on time. The main task of a good contract manager is to comply with the terms of the contract when drafting the contract and replace all unfavorable clauses with favorable ones.

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