Role and tasks of the Contract Manager

Contract Manager: Definition

The French Association of Contract Managers explains that the main objective of Contract Management is "to manage the contractual relationships between the company of which it is a member and its customers, partners and suppliers, in such a way as to optimize the company's profits by minimizing the contractual and financial risks associated with the execution of contracts and by seeking out commercial opportunities during the project phase, as well as to protect the company's interests and commercial position throughout the duration of the contract .

Behind the notion of Contract Management lies the job of Contract Manager. 

He is the guarantor of the optimal management of the contracts for which he is responsible. He ensures the definition and implementation of a strategy based on the search for performance and common interests between his company and his co-contractor(s).

His multidisciplinary skills and know-how ensure him a strategic role in the company. 

The development of this new profession has been encouraged by the multiplication of new regulations (RGPD, Sapin 2 Law) as well as by the rise of solutions dedicated to contract management such as seraphin.legal. The recruitment of a contract manager is not only reserved for large companies, the most important thing for the company is to recruit the right profile at the right time with the right job description. 

Its main tool is the contract.

It ensures optimal management of the contract life cycle. 

He/she will explain the contract signed with the client to the members of the project team from all technical professions while presenting the key issues of the contract (risks, contractual opportunities). To do this, he/she must be able to master both the legal and technical aspects of the contracts. 

Depending on the sector of activity or the type of business organisation, it may have a more or less strong role in certain areas.

The missions of the contract manager vary from one company to another, but they are evolving towards more and more transversality and responsibility.

It must be able to anticipate and control the legal and financial risks of the contractualization process. 

This is a multidisciplinary function with different types of profiles:

• Contract Manager with legal profile
• Contract Manager with buyer profile
• Contract Manager with engineering profile
• etc...

Contract manager, negotiator, communicator, the profile of a contract manager is characterized by its versatility. 

To understand the role of the Contract Manager, we need to look at the concept of Contract Management. Contract Management, or Contract Lifecycle ManagementContract Management, is the operational management of the contract by all the functions of the company involved in the project throughout the life cycle of the contract.

Here are some examples of the multidisciplinary nature of Contract Management:

• Management of a supplier by a buyer: ensuring that the supplier remains within the scope of the contract and provides the expected deliverables within the expected timeframe = Supplier Contract Management
• Bank guarantees and remittances under letters of credit are also part of Contract Management

At Schneider Electric, for example, Emmanuel Tannay told us that the Contract Manager could be more assertive in the areas of taxation, drafting of notices, facilitation of risk and opportunity reviews, etc.

Profile and role of the Contract Manager

According to Maëlle Billant, Contract Manager the Contract Manager is a conductor of an orchestra.

"Its mission is to compensate for the incompleteness and imperfection of a contract by promoting relational adaptability or in terms of changes, evolutions of the contract. The contract is an evolving tool that evolves just like the project. Projects are complex, you need someone who is capable of leading this change and moving forward at the same time as the project evolves.

The Contract Manager must : 

• Promote knowledge of the contract
• Encourage the evolution of the contract according to the evolution of the project
• Negotiating and looking for the interests of the company for which it works and of the co-contracting company: it is the search for the common interest to find adequate solutions for both parties.

There is an evolution, even a revolution, in the way we must consider the contract. The contract is no longer really transactional ("what counts is what is written in the contract, the object, the result"). Today, the contract is more relational, the relational aspect must be taken into account. Often the failures in projects are failures of human relations."

What are the missions of the Contract Manager?

Here are some of the missions listed on the APEC website (Contract Manager Apec). These assignments are categorised according to the 3 main stages in the life cycle of the contract.

• Initialization

• Execution

• Fence

How to become a Contract Manager?

We have received many Contract Managers with a legal profile on Paroles de Juristes, the podcast that examines the careers of inspiring lawyers.

All are unanimous: there is no single path to becoming a Contract Manager.

Legal skills but not only! It is a profession that requires multiple skills in the legal field but also in the financial and commercial fields. 

Indeed, there is no initial training in Contract Management. These teams are made up of profiles each having a specialization (legal, tax, engineering, purchasing, etc.). The Contract Manager is trained in Contract Management either by his peers in the company or by continuing education at theEuropean School of Contract Management directed by Grégory Leveau or by following the Assas University Diploma in Contract Management.

Maëlle, Emmanuel and Nicolas told us about their career paths and what led them to this position.

🎙 The trajectory of Emmanuel Tannay, Contract Manager at Schneider Electric

🎙 The trajectory of Maëlle Billant, Contract Manager at Orano

🎙 The trajectory of Nicolas Le Floch, Contract Manager Siemens Mobility

Resources for training :

• Guides of the French Association of Contract Management
• European School of Contract Management directed by Grégory Leveau
• World Commerce & Contracting resources
• Read books on Contract Management (for example, Contract Management - Tools and Methods by Jean-Charles Savornin).

Companies looking for a Contract Manager :

• Contract Manager Indeed
• Contract Manager Apec

What is the difference between a Contract Manager and a Contract Lawyer?

In the episode we dedicated to him on Paroles de Juristes, Emmanuel Tannay answered the question that many of us have been asking ourselves: What is the difference between a Contract Manager and a Contract Lawyer?

✅ The Legal Department will orientate towards a legal or regulatory framework, will give broad guidelines, internal rules not to be exceeded.

✅ The Contract Manager will be in the business of analysing the contract to optimise its use. He focuses on specific clauses such as "How to manage claims" "How to manage the change in the scope of the contract" "How to integrate the specific demand of a client in a given country". The Contract Manager seeks information on how best to meet the expectations of the client, the project teams and the company's interests.

ℹ Junction point with legal : the Contract Manager is on the front line of defence. He prepares the file, traces all the exchanges to enable the Legal Department or the Law Firm in the event of litigation to rewrite the story thanks to the "track records" or the history of the activity thread on the contract.

Software for Contract Managers

The software used by Contract Managers is software related to the optimisation of contract management such as Seraphin.legal or project management software such as Asana, Wrike etc...

Indeed, an efficient and Contract Lifecycle Management efficient and effective management of contracts requires, among other things, the use of a Contract Management Software, contract management software These solutions are different from electronic document management (EDM) software, as they have been specifically designed and developed to meet the needs of the business. These solutions are different from electronic document management (EDM) software, since they have been specifically designed for contract management.

FAQ: 

How to become a Contract Manager?

To date, there is no initial training in Contract Management. The Contract Management teams are composed of profiles each having a specialization (legal, tax, engineering, purchasing etc...). The Contract Manager is trained in Contract Management either by his peers in the company or by continuing education at the European School of Contract Management or by following the University Diploma in Contract Management at Assas.

Why Contract Management?

Contract Management, or Contract Lifecycle Management, is the operational management of the contract by all of the company's functions involved in the project throughout the life cycle of the contract.

What is a contract manager?

The contract manager is the guarantor of the optimal management of the contracts for which he is responsible. He/she ensures the definition and implementation of a strategy based on the search for performance and common interests between his/her company and his/her co-contractor(s).