It is a fact: business is becoming ever more contractual. Whatever the sector, contracts and legal structures are increasingly complex and call for the involvement of a « contract manager » (the more flattering English name for the French gestionnaire de contrat).
Their overall grasp of what is at stake in a contract, technically, operationally and strategically, allows the contract manager to understand in fine detail the legal and financial aspects it contains, and so to avoid major setbacks.
This expertise is needed throughout the contract lifecycle, from inception to close-out. It is perfectly complementary to the expertise of the project managers, programme directors and other PMOs with whom contract managers often work in pairs.
A. During the pre-sales phase
The contract manager is bound to be involved during the pre-sales phase, whether for tenders (public procurement or private) or, more generally, for building technical and/or commercial proposals.
At this stage, the contract manager contributes to shaping the bid, in particular by ensuring that contractual, financial and operational risks are identified and taken into account, and by proposing alternatives to mitigate risk, in coordination with the relevant support functions (legal, management control, etc.).
At this phase, the contract manager must act as a player at the service of the business, understanding commercial objectives and client issues, while always keeping internal rules and other requirements in mind.
B. During the contracting phase
This is certainly the contract manager’s best-known role: being one of the main players in drafting and negotiating the contract.
During contract negotiations and successive drafting iterations, the contract manager must ensure that essential elements such as the project schedule, the deliverables and payment milestones, the liquidated damages, the performance levels (SLAs, for example) and other contractual conditions comply with expectations and internal rules.
The contract manager will also be responsible for passing the agreed contractual conditions down (on a « mirror » or « back to back » basis) to the suppliers and subcontractors concerned.
C. During the delivery phase
The contract manager’s role here is just as essential: supporting the project manager, programme director or PMO, they ensure that the project being delivered remains aligned with its contractual obligations.
The contract manager will therefore steer contractual performance, spot deviations, identify potential or confirmed risks, track changes, put contract amendments in place, and also step in during any disputes and claims.
Given the growing number of uncertainties in recent years (fluctuating raw material costs, rising software prices, supplier and subcontractor failures, etc.), the contract manager has become an essential cog in the delivery phase.
Conclusion
In short, the contract manager must be able to understand commercial issues and financial and legal problems in order to have them applied operationally within complex projects (IT, infrastructure, engineering, construction, etc.).
The contract manager is therefore becoming a key player in major projects and a key factor in their success and profitability.