Hi Eileen, happy to share some evaluation work we did with one of the big 4 consultancy firms here in the UK. Essentially the evaluation was based on the idea of core CLM and its functionality, not being able to capture in real time through dashboards how a contract is performing, and how you could capture contract specific data from IoT sensors, mobile devices and tablets and to what extent this could then drive operational performance of those contracts during their lifetime. We are contract data specialists and have built a data driven contract intelligence platform but the work was based on experiences working with complex contracts in global supply chains and is a relatively good read
• Seal Contract Discovery & Analytics
Hi Eileen, have you heard of Seal Software? Seal can find and centrilize all your contracts for you, bringing them all together in one repository. It can then analyse and extract necessary information and key terms from the document, identify standard and non standard clauses, and alert you to important information such as contract end dates. See www.seal-software.com for some more info or give us a call on 1 650 938 7325 if you want to learn more. Good luck in your search!
The performance of the Contract Manager role and the performance of the Contract Management Process in general is one of our key points in each one of our recent IACCM anual conferences and networking events, as the matter takes us to the question: "How should we measure and demonstrate success?"
Indeed, while transactional performance is clearly important, it rarely offers the insights that we need, if we are to raise our status and our contribution.
Our thinking and our measurements must start to focus on driving benefits at a portfolio level and relate directly to achieving the strategic goals of our business.
Value will be delivered through a process based view, through monitoring the outcomes of what we do, through generating measured innovation and continuous improvement.
This depends upon capturing and analysing performance data, through challenging established rules and procedures, through inspiring the new models and approaches we have discussed this week. And it also depends on courage - developing leadership and influencing skills.
Keep in mind one of IACCM survey findings: 'Contract Management is one of the least automated processes... and this results in inefficiency and weaknesses in PERFORMANCE oversight, as well as in the absence of management reporting and information'. Here we value the importance of Contract Management Automation and that´s why we are focused on this topic in recent Ask the Expert sessions and in our future events (Australasia and The Americas conferences).
Dear David, have you thought about listing out every task that contact managers are responsible for in your corporation then, assigning a numerical value to each task. Then, assigning a score to each task to analyse and create a quantified report on your overall contract management performance?
e.g. you mentioned governance, negotiation, change process as a few of the tasks. Perhaps you could write these tasks in a spreadsheet and assign values like so:
You could average each of the score values and weigh it against how important each of the tasks are (based on their numerical value). From a high level point of view, based on these numbers, you could create a percentage of "contract management performance efficiency" per quarter/month/week/day for each of your contract managers.
This is just one idea. As full disclosure, I work with a contract management software vendor where we help our clients effectively manage their contracts online. We don't have this particular feature built out on our software yet, but would be open to discussing further and building it our for you in our Analytics & Reporting function, if you'd be interested.
Feel free to contact me directly at firstname.lastname@example.org
Much has been written in this subject and our IACCM learning modules cover many of them. At first sight I´d strongly recommend to check previous entries of this forum where in response to Natarajan Balachandar´s post, for instance, we received multiple responses: refer to
Glad to hear that you have been working on your profile and diversifying your Curriculum Vitae with new skills coming from the Contract Management field.
If you are looking for tips to land a good CM role, you are in the appropiate site. At IACCM events you will not only have the chance to meet potential employers but also some recruiting firms specialized in this role, and mainly you may want to explore networking activities including exposure of your profile and listen to potential job offers. Finally, keep in mind that it is essential to get in direct contact with your community of interest, feel free to match your profile with the oil & gas COI and you will find lots of networking opportunities there.
Hope this helps, best regards
Many thanks for your response to my post.
I have taken your advice and have matched my profile with oil and gas COI and have begin networking.
Regarding the events organized by IACCM, I am actually quite keen to attend any of the events based in London. At the moment It doesn't mention on the website when the next event in London is being held, but I will make sure to keep track and register when announced.
Hi Alicia, My experience with financial guarantees including performance bonds and/or parent company guarantees, have been in services. That, from my perspective, includes subcontracts for services and/or owner/operator services. Both major capital projects and turnarounds may include a bond or performance guarantee. It may also include performance damage clauses or liquidated damages.
There is a trend to pass along these risks from the owner to the contractor.
If you are in contracts management, have your risk management department review the language to make sure that it is within your company's policy..
First off, there's a big difference between parent company guarantees and performance/surety bonds / bank guarantees (in whatever form or name).
Parent company guarantees should be requested when contracting with an underfunded subsidiary regardless of the type of contract if you fear the subsidiary might not be able to meet its potential liabilities (including its possibly significant indemnity obligations) under the contract. The purpose of the PCG is to ensure that the contracting entity has the financial capability to meet all of its potential liabilities under the contract.
Performance bonds, however, are secured to ensure that the contracting entity will be capable of performing its performance duties under the contract. These are often made in an amount equal to a percentage (e.g. - 10%) of the revenues under the contract. These are frequently used in construction contracts. They are often also required in the oil & gas entity when operating in a PSC regime where the PSC tendering requirements or the local NOC procurement practices require it. But performance bonds are seldom used for ordinary service contracts in the US or other similar operating environments.
Hope this helps, but feel free to call anytime.
• Saudi Arabian Oil Company (Saudi Aramco)
Although I think both Patricia and Robert have done an admirable job in answering your question, I thought I would drop my two pence in, for additional perspective.
I would echo the comments you yourself have made, in that a number of different performance related mechanism can be put in place, but most often for capital projects, not services. For example, Bank Guarantees and Retention can be employed in concert with each other, in addition to a Parent Company Guarantee. The latter is often put in place as a form of surety against the parent company, should the subsidiary get into financial difficulty, but in reality, in my experience it is of little value and does not reduce the overall rate of contractors failing to complete works due to financial difficulty.
As a mechanism for improving overall contractor selection, performance bonds and PCG's are a poor and lagging indicator for proper evaluation of a contractor's resources, cash flow and overall capacity and capabiltiy to conduct the works. If you have to resort to such mechansims, then there was probably poor contractor pre-qualification/selection and no amount of "performance bonds" are going to resolve cost and schedule issues, as a result.
• Abu Dhabi National Oil Company
Many companies ask for these out of convention and practice forgetting to go back to address the fundamental principle of why you request such guarantees which is for a risk mitigation. Is the risk real for what your contracting for and with ?
In previous role challenged need for such devices for service contracts being executed with parent company/large subsidiaries who had a A + financial rating and contracts were based on day rates . As part of the final negotiation we wanted to understand what was the cost as these generally have a price. Supplier provided their quotes to provide provide guarantees from their banks which was six figures. Management decision was to overrule previous convention as these costs were not good value versus the relative risk.
The reverse may apply where the entity offered even from a large multinational is only a trading entity or financial due diligence highlights issues.