When you think of a business and crucial role, you first thought is CEO and then the IT department. When you think of Contracts Managers you are probably scratching your head and wondering who they are and what they do. Contracts managers sit as a mid-senior commercial manager. While the term manager is used in the job role, management typically means process and policy management rather than team management. However senior contract managers will typically manage teams.
It is easy to fall into the belief, like business analyst or UAT tester, the role is fairly standardised. Unfortunately, this is not true and depending on the sector, contracts manager will broadly fall into one of four categories. The first two are public (universities, NHS Trusts, and government bodies), construction / manufacturing, these roles are very much pre-signature. Meaning post the contracts managers review, negotiate, draft, advise, and sometimes sign agreements. They asses each contract and evaluate their risk and flag any risks that could be problematic for the business. Sometimes, after signature they will advise on any questions or on interpretation of th clause. In many ways the role is a quasi-risk manager role. Next type of contracts manager is a post signature role. In many ways they are like an account manager that manages the agreement post signature, looks for ways to sell to the customer, and manages that relationship. Final type of contracts manager role is the end-to-end contracts manager. Meaning the contracts manager negotiates the agreement, gets it signed, then ensures the other party complies with the terms of the agreement, and manages any issues that may arise.
The role itself requires a high degree of organisation because of changing priorities and the ability to prioritise workload. Contracts Managers need specialised legal knowledge especially in areas like Human Tissue Act, Copyright Design and Patent Act, Data Protection Act, Registered Design Act, Patent Act, contract law, Limitations Act, contract drafting, contract reviewing, and negotiations. Also, the role requires the ability to communicate both verbally and written. Along with the ability to explain very complex legal ideas to non-legal professionals at various levels in the organisation. If there are risk issues or if the agreement is outside of the accepted parameters for an agreement the contracts manager will escalate the issue to the proper individual. Before signing they will ensure the proper teams will have reviewed and signed off the agreement. Finally, from an internal perspective, contracts managers with experience become process experts and understanding how the business operates. In addition to the internal responsibilities the contract manager will typically take the lead when discussing and negotiating the agreement with external parties.
Contracts Managers will be involved in agreements that see no payment being made to the organisation like payment-in-kind to multi-million-pound agreements involving several parties both in the private and public sector companies located in multiple countries. This will mean, a contract manager understands the commercial position of the organisation, what it wishes to achieve, and understands how to manage expectations by explaining the various positions of the other parties.
As for education most contracts managers either are qualified solicitors or hold a law degree. Some will hold a PhD or non-law degree. Those who come the via non-law degree, will usually, have come up in the organisation and understands how the company operates but may not have the legal background. Those who hold a PhD they have the research background that may understand material transfers, data transfers, and intellectual property;however, lack the wider legal understanding.
So, why can’t an organisation not survive without a contracts manager? The answer is simple. A contracts manager is a communicator that explains various positions, explains complex concepts at a level that is understandable, brings competing ideas together to reach a consensus to allow an agreement to be signed, and can prioritise competing demands. Finally they are the risk and process managers, without them organisations would face financial loss. Finally, without contracts managers many organisation will struggle to realise the financial and reputational benefits from their agreements. Contracts Managers are the role that no organisation should do without.