How can you ensure third-party vendor contract changes are properly documented?

1 Define change management procedures

The first step to ensure proper documentation of contract changes is to define and agree on the change management procedures with your vendor. This should include the roles and responsibilities of each party, the types of changes that require approval, the methods and formats of documentation, the timelines and deadlines for submission and review, and the escalation and dispute resolution mechanisms. Having clear and consistent change management procedures can help you avoid misunderstandings, delays, and disputes with your vendor, and ensure that both parties are on the same page about the contract terms and conditions.

2 Track and record contract changes

The second step to ensure proper documentation of contract changes is to track and record them in a systematic and organized manner. You should use a contract management system or a tool that allows you to store, access, and update all the contract documents and records in one place. You should also assign a contract manager or a team to monitor and review the contract changes, and ensure that they are aligned with the change management procedures and the contract objectives. Tracking and recording contract changes can help you maintain an accurate and complete contract history, and facilitate audits, compliance, and reporting.

3 Communicate and confirm contract changes

The third step to ensure proper documentation of contract changes is to communicate and confirm them with your vendor and other relevant stakeholders. You should use formal and written communication channels, such as emails, letters, or memos, to notify and inform your vendor and other parties about the contract changes, and request their feedback and approval. You should also use digital signatures or other methods to verify and authenticate the contract changes, and ensure that they are legally binding and enforceable. Communicating and confirming contract changes can help you build trust and transparency with your vendor and other stakeholders, and prevent conflicts and disputes.

4 Review and evaluate contract changes

The fourth step to ensure proper documentation of contract changes is to review and evaluate them periodically and systematically. You should use key performance indicators (KPIs) or other metrics to measure and assess the impact and value of the contract changes, and compare them with the original contract expectations and goals. You should also solicit and analyze feedback from your vendor and other parties on the contract changes, and identify any issues or gaps that need to be addressed or improved. Reviewing and evaluating contract changes can help you optimize and enhance your contract performance and outcomes, and ensure that they meet your needs and expectations.

5 Train and educate on contract changes

The fifth step to ensure proper documentation of contract changes is to train and educate your staff and your vendor on the contract changes, and ensure that they understand and comply with them. You should provide regular and timely training sessions, workshops, or webinars to explain and demonstrate the contract changes, and how they affect the contract roles, responsibilities, processes, and deliverables. You should also provide relevant and updated manuals, guides, or resources to support and assist your staff and your vendor in implementing and managing the contract changes. Training and educating on contract changes can help you increase awareness and knowledge, and ensure consistency and quality.

6 Document lessons learned from contract changes

The sixth and final step to ensure proper documentation of contract changes is to document the lessons learned from the contract changes, and use them to improve your future contract management practices. You should conduct a post-contract review or a debrief session with your vendor and other parties to discuss and summarize the contract changes, and what worked well and what did not. You should also document and share the best practices, challenges, and recommendations from the contract changes, and use them to inform and refine your contract management policies, procedures, and standards. Documenting lessons learned from contract changes can help you capture and leverage the knowledge and experience, and enhance your contract management skills and competencies.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?