Public Sector Contract Management

Why Contract Management for the Public Sector?

There are a few Frameworks from Government entities globally, the OGC in the UK, some work out of Australia, pockets of best practice from the US and SA’s own National Treasury Framework. Each one has a common theme, improving supplier performance, governance of the funds entrusted to it, ensuring value for money and that Governments interest are protected.

Manual Systems and Processes

Much work has been done in SA, particularly in KZN Province and now in Limpopo Province, on establishing manual processes for contract management. These include establishing contract registers, reviewing a sample of existing contracts, establishing standard contracts for a range of supplies and services, developing policy and procedure.

Previously contract management was not an identified discipline, and the results were similar to the private sector, a lack of focus to this important function had a serious detrimental impact, especially with the pressure most African Governments are under for service delivery, none more so than SA.

The impact of the work done on behalf of Treasury in these Provinces has been a highly valuable case study in the practical implementation of the theory of contract management, the risks and exposure from ignoring the functions, and the benefits that arise.

Realyst has been an active panellist on this project from inception.

The Value of the SA National Treasury Framework

The SA NTF for contract management is a very useful starting point for all state entities in reviewing what they need to do in order to comply with good practice. It follows an in depth examination of the links between CM, PFMA, MFMA, a guide to implementation and self-assessment tools.

By complying with the Framework, Government entities will ensure a contract management clean audit.

The Role of Systems in Public Sector Contract Management

Government policy is usually well defined, which enables systems to be aligned and capable of repetition, save that each entity will have different contract types and reporting requirements.

The SA NTF recognises the value of automating the processes underlying these policies, and the value systems can provide Government entities.

In our experience the focus points should be:

  • Document controls, electronic copies and ease of retrieval
  • Establishing contract registers, with defined data per contract type
  • Reporting

Easing the legal burden through automated contract creation and improving drafting quality

What is Contract Management? | Request a Demo | Contact Realyst

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Contract Management

What is Contract Management?

Contract Management refers to the management of all contracts made with another party – whether they are vendors, customers, partners or employees. A Contract Manager is required to support and manage contracts, as well as to negotiate and facilitate contract creation.

Manual Contract Management

Although a software solution for Contract Management enhances the solution immeasurably, even manual processes can be put in place to better the Contract Management in organisations. Processes and procedures can be put into place to ensure contract standardisation, document retention and efficiency. Employees can use these processes to enhance an electronic system.

Digital Contract Management

Digital or online Contract Management allows companies to automate their processes – this has numerous benefits as listed below.

Digital Contract Management refers to the creation, management and monitoring of contracts and their related documents using software. Typical components of our software solution are:

  • Contract Creation
  • E-Signatures
  • E-Forms
  • Document Management
  • Alerting and Notifications
  • Reporting
  • Lack of visibility into contractual commitments
  • Poor document control and record keeping
  • Missing of key dates and events
  • Risks of over-payments
  • Lack of standardisation of agreements, inefficient contract authoring, negotiating and control
  • Poor monitoring of contract progress, verifying payments against deliverables and
  • Inability to enforce rights in the event of a dispute
  • Poor supplier management
  • Lack of contractual information for budgeting purposes
  • Inconsistent approach, no clear policies and guidelines, lack of skills in contract management
  • Allows businesses to monitor spending and thus manage (and reduce) unnecessary expenses
  • Reduces your risks of missing important contractual dates such as expiry dates
  • Provides instant secure access to all existing contracts
  • Reduces the burden on the legal department to vet incoming contracts and draft new ones
  • Quote to cash cycles are reduced dramatically due to the ease of digital contract creation
  • All changes to contracts can be monitored and a full audit trail is available for reference
  • Approval workflow is automated with audit trail
  • All contracts can be electronically stored, which means original documents can be filed away safely while uses still have access to important contractual information
  • Reporting allows users to gain management-level information on their contracts which allow management to make informed, fast decisions.

Risks of not having Contract Management

  • Lack of visibility into contractual commitments
  • Poor document control and record keeping
  • Missing of key dates and events
  • Risks of over-payments
  • Lack of standardisation of agreements, inefficient contract authoring, negotiating and control
  • Poor monitoring of contract progress, verifying payments against deliverables and
  • Inability to enforce rights in the event of a dispute
  • Poor supplier management
  • Lack of contractual information for budgeting purposes
  • Inconsistent approach, no clear policies and guidelines, lack of skills in contract management

Everyday Benefits of Digital Contract Management

  • Allows businesses to monitor spending and thus manage (and reduce) unnecessary expenses
  • Reduces your risks of missing important contractual dates such as expiry dates
  • Provides instant secure access to all existing contracts
  • Reduces the burden on the legal department to vet incoming contracts and draft new ones
  • Quote to cash cycles are reduced dramatically due to the ease of digital contract creation
  • All changes to contracts can be monitored and a full audit trail is available for reference
  • Approval workflow is automated with audit trail
  • All contracts can be electronically stored, which means original documents can be filed away safely while uses still have access to important contractual information
  • Reporting allows users to gain management-level information on their contracts which allow management to make informed, fast decisions.

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What is Contract Management? | Request a Demo | Contact Realyst

Digital Transaction Management

What is DTM?

Digital Transaction Management (DTM) has recently emerged as the latest technology in cloud-based document management and document-based transaction management.

DTM eliminates the complications and time-consuming actions involved with document-based communications and processes by allowing users to complete all transactions online and through the cloud. This increases execution time for tasks, reduces cost and errors and provides simple digital interactions with all your documents.

The Future is Digital

DTM and process automation is not only about creating a paperless environment – the goal is to allow businesses to streamline processes, increase turnover time for task completion and eliminate errors. These technologies allow users to have a full audit history of transactions, as well as complete control over authorisation chains and process flows for document creation, management and monitoring.

As industries move more into the digital space with cloud computing and process automation, the use and incorporation of DTM in companies across industries is set to increase dramatically over the next few years. It is expected that it will grow to a $30 billion market by the 2020 year end.

Digital Elements of DTM

  1. Workflow automation – Transactions are automated and controlled digitally. These workflow chains can be configured by the business user.
  2. Assembly – Creation, configuration and delivery of documents and data into key business applications
  3. Agreements – Legal documents and agreements can be created and managed
  4. Identity – Security and identity proofing for users
  5. E-signature – Users can sign a document digitally (and securely)
  6. Integration – Can integrate into external applications and cloud-based document management systems
  7. Secure Transactions – A secure and centralised transaction centre
  8. Admin and Control – Users can create and manage users and their permissions for content editing and creation
  9. Audit History – A full audit trail covering all transactions and their details. This should be admissible in court.

Realyst and Digital Transaction Management

Over the years, Realyst has been working with many private and public sector organisations to help them streamline and automate their contract management processes. However, one vital part of those processes – the physical side of the contacting transaction – has surprisingly stayed stuck in the past. New smartphone and tablet technology has contributed significantly to opening this market.

Organizations that embrace the digital future by signing contracts electronically and sending contracts electronically for signature can speed up their contracting process, lower operating costs, reduce errors, and provide a superior customer experience. By going digital these companies will avoid the traditional pitfalls of lost or missing data and documents, breakages in the contracting processes, and lack of visibility into the contract management workflow.

Our Contract Management Solution addresses all of the requirements for Digital Transaction management and provides a solution to all the short falls of paper-based, manual transactions.

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What is Contract Management? | Request a Demo | Contact Realyst

Realyst – A Contract Management House that offers both consulting and software

History

Realyst is a Contract Management Solutions house that offers both consulting and software to ensure that you create and manage your contracts effectively, efficiently and according to best practice guidelines.

We began in 1998 where the software’s original purpose was to manage retail premises leases. It has now grown to be a product that manages multiple contract types, installed either onsite or stored in the cloud.

The Group own the source code, which combined with our modelling tool, allows us to create customisable solutions for any company in any industry. The company was restructured in 2011 with the purchase of a stake by Fasyl Technology Group, which allowed us to take advantage of the emerging contract management market in Africa and new development plans.

Since then our client base has grown to include large corporate companies, insurance companies and multinational companies. In 2012 Realyst was proud to be awarded part of the roll out of a contract management initiative across the KZN Province for Treasury, the first project of its kind in Africa.

About Realyst as a Company

Vision

Realyst aims to entrench itself as the leading supplier of Contract Management services in Africa.

Values, Goals and Objectives

Realyst values honesty, integrity, flexibility and a sincere commitment to our clients.

What Realyst Does

Our Business and Project Management team work closely with our clients in order to gather all the requirements that we need to provide a CM solution. Our expert development team then work together to provide a solution that meets the needs that have been discovered through various workshops and client meetings.

Once the project has been successfully implemented, we have a support and maintenance plan to make sure that the client still receives the support and service they deserve.

About RealContract

RealContract has a variety of modules that allow our clients to efficiently manage their contracts. Modules include contract creation, e-forms and e-signatures, management of dates and deadlines, payments as well as electronic storage of contracts and their related documents.

Contract Creation

Our Contract Creation module allows users to create contracts from scratch quickly and easily online. We can create a template for any contract type imaginable! Our digital signature software means that once the contract has been through our authorisation chain, contracts can be signed quickly and easily.

This means that the quote to cash cycle is shorted from weeks or even months down to days. Once a contract has been created, it can easily be authorised and signed. Imagine – fast, easy, paperless same-day contracts!

Document Manager

Our Document Manager allows users to store any physical documents– all the user has to do is upload the document into the system. This allows fast, easy access to the pertinent information of your contracts – all while the physical document is stored safely away.

Date and Notifications Management

Our alerting system ensures that you never miss an important date or deadline. Contract renewals and expiry as well as payment dates can all be alerted on so that you never forget a date.

Conclusion

Realyst is a South African based company with global aspirations. We strive to provide the best possible Contract Management solutions through our large knowledge base and extensive experience. As a company, we value integrity, honesty and quality service. Our Contract Management package is one of the most diverse and customisable solutions available – not only in Africa, but around the world.

Request A Demo

What is Contract Management? | Request a Demo | Contact Realyst