How to Become a Contract Analyst (Ink Pages, Rule Stages!)
If you’ve ever been intrigued by the idea of assessing and managing contracts, or wondered what it takes to become a Contract Analyst, you’re in the right place.
In this guide, we’ll explore the EXACT steps you need to take to launch your career as a Contract Analyst. We’ll talk about:
- The skills you need.
- The education that can help you get there.
- How to land a job as a Contract Analyst.
So, whether you’re new to the field or a seasoned professional looking to enhance your skills, stay tuned.
We’re about to unravel the blueprint to become a Contract Analyst.
Let’s get started!
Steps to Become a Contract Analyst
Step 1: Understand the Role of a Contract Analyst
The first step in pursuing a career as a Contract Analyst is understanding what the role entails.
A Contract Analyst plays a significant role in managing, reviewing, and analyzing contracts for an organization.
They ensure that all contracts entered into by the organization are in its best interest, comply with all legal requirements, and are beneficial to all parties involved.
A Contract Analyst needs to be proficient in areas such as risk management, legal research, negotiation, and business management.
They need to understand the intricacies of contract law and be able to interpret contractual language to ensure the organization’s interests are protected.
In addition to these tasks, they may also be responsible for maintaining relationships with vendors and suppliers, ensuring contractual obligations are met, and even aiding in the development of new contracts.
This position requires a keen attention to detail, strong analytical skills, and a comprehensive understanding of business operations and legal regulations.
It is also important to understand that this role can vary significantly from one industry to another.
For example, a Contract Analyst in the healthcare industry might focus on contracts related to medical equipment and pharmaceuticals, while one in the construction industry might deal with contracts for building materials and labor services.
Thus, gaining a clear understanding of what the role entails in your desired industry is a crucial first step.
Step 2: Obtain a Relevant Educational Background
To become a contract analyst, a relevant educational background is essential.
Most contract analyst roles require a bachelor’s degree in a related field such as business, finance, law, or economics.
These programs will provide you with the foundational knowledge needed to understand and interpret contracts, business operations, and financial data.
In your chosen program, you should focus on courses that cover topics such as contract law, business law, negotiation tactics, financial analysis, and business management.
These courses will provide you with a well-rounded understanding of the complexities involved in contract analysis.
While a bachelor’s degree is the minimum requirement, many contract analysts further their education by pursuing a master’s degree in business administration or a related field.
This advanced degree can provide a deeper understanding of the intricacies of business operations and contracts, making you a more desirable candidate for higher-level contract analyst roles.
Some aspiring contract analysts also choose to go to law school.
This pathway provides in-depth knowledge of contract law and legal procedures, which can be incredibly beneficial in this role.
However, law school is a significant investment of time and money, so you should carefully consider this option.
Moreover, earning relevant certifications, such as the Certified Commercial Contracts Manager (CCCM) or Certified Federal Contracts Manager (CFCM), can give you a competitive edge in the job market.
These certifications demonstrate your proficiency in contract management and show potential employers that you are committed to the profession.
Remember, education is just one piece of the puzzle.
Applying your knowledge through internships, work experience, or even case study competitions can help you gain practical experience and stand out in the job market.
Step 3: Develop Strong Analytical Skills
As a contract analyst, you will need to meticulously analyze contract terms, conditions, obligations, and liabilities.
This involves a lot of attention to detail and requires strong analytical skills.
These skills can be developed through taking relevant coursework in law, business, finance, or economics as part of your undergraduate or graduate studies.
You might also consider getting practical experience to strengthen your analytical abilities.
Internships or part-time jobs related to contract analysis or contract management can provide valuable hands-on experience.
These opportunities allow you to apply theoretical knowledge in a practical setting, helping you understand the nuances of contract analysis.
Apart from formal education and hands-on experience, consider taking up puzzle-solving, strategic games, or activities that involve critical thinking and problem-solving.
These can help hone your analytical skills and enhance your ability to spot patterns and assess complex situations, which are crucial skills for a contract analyst.
Participating in mock negotiation sessions or case study competitions can also be beneficial.
These activities can help you understand the dynamics of contract negotiations and disputes, and can enhance your ability to analyze contracts effectively.
Also, it’s crucial to stay updated with the latest legal and industry trends that can impact contract terms and negotiations.
Subscribing to relevant professional journals, attending webinars, or joining professional networks can help you stay on top of industry updates.
Remember that developing strong analytical skills is a continuous process and requires constant learning and practice.
Step 4: Gain Knowledge of Contract Law
In order to be a successful Contract Analyst, it is crucial to have a solid understanding of contract law.
This includes understanding the ins and outs of how contracts are structured, what they can include, how they are enforced, and the legal implications of breach of contracts.
While a law degree is not necessarily required for the role of a contract analyst, taking courses or attending seminars in contract law can be highly beneficial.
Many universities and colleges offer courses in contract law that are open to non-law students.
There are also numerous online platforms that offer legal courses.
Aside from formal education, self-study is another great way to gain knowledge of contract law.
There are numerous books and online resources that can provide you with a deep understanding of the subject.
Furthermore, familiarize yourself with the legal terminology used in contracts.
This will make it easier for you to comprehend the content of a contract and discuss it confidently with stakeholders.
Keep in mind that laws can vary greatly depending on the location, so if you aim to work in a specific state or country, you should tailor your studies to understand the relevant local laws.
Finally, real-world experience is a great teacher.
As you progress in your career, you will come across various contracts which will allow you to learn and understand the practical application of contract law.
Step 5: Learn Key Business Principles
As you embark on your career as a Contract Analyst, it’s essential to familiarize yourself with fundamental business principles.
A deep understanding of concepts such as corporate governance, financial management, and strategic business planning can greatly enhance your abilities as a Contract Analyst.
You should have a grasp of business law, particularly as it pertains to contracts and agreements.
This will allow you to better understand the legal jargon used in contracts, making it easier for you to analyze them effectively.
Knowledge of finance is also vital, as contracts often contain financial information that needs to be analyzed and understood.
This includes understanding financial models, budgeting, and risk assessment.
Moreover, get a grip on negotiation tactics and techniques, as they are fundamental in formulating and finalizing contracts.
Comprehend the tactics used by both parties in a negotiation, as well as strategies for achieving a win-win situation.
You can learn these business principles through formal education, online courses, workshops, or self-study.
Applying these principles in real-world scenarios, perhaps through internships or part-time jobs, can also greatly enhance your understanding.
The key is to continue learning and applying these principles throughout your career as a Contract Analyst.
Step 6: Acquire Proficiency in Computer Skills and Software
To excel as a contract analyst, it is crucial to have excellent computer skills and a strong proficiency in various software applications that are essential to this line of work.
This would typically include Microsoft Office Suite with a strong emphasis on Word and Excel for drafting and analyzing contracts, PowerPoint for presentations, and Access for database management.
Proficiency in a contract management system is also important.
These systems, such as SAP or Oracle, are designed to streamline the contract life-cycle management processes, allowing you to create, track, and manage contracts more efficiently.
Familiarity with these systems can greatly enhance your ability to perform as a contract analyst.
In addition, a good understanding of data analysis software, like Tableau or SAS, can be beneficial.
These tools are used to extract, interpret and analyze data related to contract performance.
They can help you to pinpoint trends, identify potential issues, and make informed decisions.
Taking courses, attending workshops, and seeking certifications in these software applications can help bolster your competency.
This technical prowess will not only help you carry out your responsibilities with more efficiency and accuracy but also make you a more desirable candidate for potential employers.
Step 7: Pursue Internships or Entry-Level Positions in Related Fields
Starting off in internships or entry-level positions related to contract analysis is a great way to gain practical experience.
This could include positions in legal departments, contract administration, procurement, or project management where you would have the chance to work with and analyze contracts.
In an internship or entry-level position, you can learn the practical aspects of contract management, such as drafting, reviewing, and negotiating contracts, dealing with compliance issues, and understanding the implications of contract terms.
You’ll also become familiar with the legal language and technical terms that are commonly used in contracts.
These experiences not only serve to enhance your resume, but they also allow you to understand the dynamics of the field, such as risk management, relationship between contracting parties, and the decision-making process involved in formulating contracts.
This step will help you build a foundation of skills necessary to become a successful contract analyst.
Remember, the more exposure you have to different scenarios and types of contracts, the broader your understanding and skills will become.
Therefore, try to seek out opportunities in various sectors and industries.
Step 8: Earn Certifications Related to Contract Management
Once you have gained experience in the field, you might want to consider earning professional certifications related to contract management to further enhance your qualifications and credibility.
Many organizations value these certifications as they indicate a higher level of expertise and dedication to the profession.
Popular certifications for contract analysts include Certified Professional Contracts Manager (CPCM), Certified Federal Contracts Manager (CFCM), and Certified Commercial Contracts Manager (CCCM), all offered by the National Contract Management Association (NCMA).
Earning these certifications may involve meeting specific educational and work experience requirements, as well as passing a comprehensive exam.
The certification process often requires continuous learning and re-certification over time, showing your commitment to staying updated with the latest trends and best practices in contract management.
Acquiring these certifications can open up better job opportunities, lead to higher salaries, and provide a competitive edge in the job market.
Keep in mind that while certifications are beneficial, they are just one part of your overall professional development.
Continual learning, on-the-job experience, and networking are also key to advancing your career as a contract analyst.
Step 9: Build Experience in Contract Drafting and Review
As a contract analyst, it’s crucial for you to have hands-on experience in drafting and reviewing contracts.
This experience will strengthen your understanding of contract language, structure, and the legal implications that come along with it.
You will also gain skills in identifying potential risks and issues within a contract.
One way to gain this experience is by taking on internships or entry-level roles that involve contract drafting and review.
This could be in a legal department of a corporation, a law firm, or governmental agencies.
In these roles, you will likely have the chance to work with senior contract analysts or attorneys who can provide guidance and feedback on your work.
You could also consider volunteering for pro bono work that involves contract drafting and review.
Another method to gain experience is by taking courses or attending workshops focused on contract law.
These can provide practical exercises where you can draft and review mock contracts.
Remember, the more experience you have in contract drafting and reviewing, the more adept you will become in understanding complex contractual issues.
This will be essential in your role as a contract analyst.
Step 10: Network With Contract Management Professionals
Networking is a critical part of advancing in any profession, and contract analysis is no exception.
By connecting with other professionals in contract management, you can broaden your knowledge base, gain insights into different industries, and potentially learn about job opportunities that you may not find in public job listings.
There are many ways you can network with contract management professionals.
Industry conferences and seminars are excellent places to meet and connect with other professionals in your field.
You can also join professional organizations, such as the National Contract Management Association, which provide opportunities for networking and professional development.
Online platforms, such as LinkedIn, also offer opportunities for networking.
Join groups related to contract management, participate in discussions, and connect with other professionals in your field.
Remember, networking is not just about meeting people to find job opportunities.
It’s also about learning from others, sharing your own knowledge, and building relationships that can support your career growth in the long term.
Always approach networking with a genuine interest in other people and what you can learn from them.
Volunteering for roles in professional organizations or at industry events can also be a great way to make connections and demonstrate your commitment to the field.
Networking is an ongoing process, so be patient, persistent, and proactive.
Step 11: Stay Updated on Industry Regulations and Standards
In the role of a Contract Analyst, it is crucial to consistently stay updated on industry regulations and standards.
This involves understanding contractual law and business laws, as well as being aware of the changes happening in both local and international legal landscapes.
These regulations may influence the nature of the contracts you analyze or the strategies you use for negotiations.
Therefore, you should regularly review industry-specific laws and regulations, be it in healthcare, finance, technology or any other sector.
Subscribe to legal journals, attend seminars or webinars, and participate in industry-specific training programs to stay informed about current trends and changes.
In addition, joining professional organizations can provide valuable networking opportunities and resources to help you stay updated.
Regulations and standards also vary from one geographical location to another, so if your work involves international contracts, understanding international laws and standards is essential.
Remember, an effective Contract Analyst not only understands the contracts in front of them but also the broader legal and regulatory context in which those contracts operate.
Staying updated on industry regulations and standards is therefore not only beneficial but a necessity for your career growth and success.
Step 12: Showcase Your Expertise in Problem-Solving and Negotiation
As a contract analyst, your ability to solve problems and negotiate effectively is paramount.
This is due to the complex nature of contracts and the various issues that can arise during contract formation and execution.
By showcasing your expertise in these areas, you can improve your standing in the field and open up new career opportunities.
One method to highlight your problem-solving skills is by demonstrating your ability to navigate complex contract issues and come up with effective solutions.
You can do this by citing specific instances from your past work experiences where you were able to identify potential contract issues and implement effective solutions.
Negotiation skills, on the other hand, can be showcased by highlighting your successful negotiation experiences.
Describe the situations where you had to negotiate contracts and the successful outcomes you achieved.
In addition, participating in workshops, seminars, or courses on negotiation and problem-solving can greatly enhance your skills.
You may also consider obtaining certifications that specifically focus on these areas.
Remember, your ability to negotiate and solve problems doesn’t just benefit you – it can also save your employer time and money, making you a valuable asset in the contract analysis field.
Step 13: Apply for Contract Analyst Positions
After having gained the necessary academic qualifications and practical experience, the next step in your career as a Contract Analyst is to start applying for suitable job positions.
Look for openings on various job search websites, company websites, LinkedIn, and other platforms.
When applying, ensure your resume and cover letter are updated and tailored specifically for the job you are applying for.
Highlight your skills, knowledge, and experience that align with the job requirements.
These may include contract administration, negotiation, legal compliance, and financial analysis among others.
Prepare for interviews by researching common Contract Analyst interview questions.
Practice your responses, focusing on your problem-solving capabilities and real-life experiences managing contracts.
Showcase your understanding of contracts and your ability to analyze various contract elements.
Networking can also play a crucial role in your job search.
Attend industry events, join professional organizations related to contract management and make connections with people working in similar roles.
This can not only open up job opportunities but also provide you with valuable insights and advice.
Remember, the job search may take time.
Stay persistent and continue to improve your skills and knowledge while you search for the right opportunity.
Contract Analyst Roles and Responsibilities
Contract Analysts play a crucial role in managing and scrutinizing business contracts to ensure they are in the best interest of the organization.
Their roles often involve a combination of legal and business expertise.
They have the following roles and responsibilities:
Contract Analysis
- Review, interpret, and analyze contracts for various business arrangements.
- Identify and evaluate potential risks in contract terms.
- Provide expert advice on the legal and financial implications of contract terms.
Contract Development and Negotiation
- Assist in drafting contractual provisions and agreements.
- Support negotiation of contract terms with business partners.
- Ensure that contracts meet all legal requirements and comply with company policies.
Contract Administration
- Maintain accurate and up-to-date contract files and databases.
- Track contract performance to ensure timely and proper execution of contract terms.
- Manage contract renewals, terminations, and other modifications.
Compliance
- Ensure compliance with company policies, regulatory requirements, and laws related to contracts.
- Assist in the development and implementation of contract-related policies and procedures.
Collaboration
- Work closely with cross-functional teams (legal, finance, procurement, sales).
- Coordinate with stakeholders to ensure contract terms are fulfilled.
Dispute Resolution
- Manage disputes related to contract terms and conditions.
- Coordinate with legal team to address potential legal disputes.
Communication
- Communicate contract terms and conditions to relevant stakeholders.
- Provide reports on contract status, compliance, and other key metrics.
Continuous Learning
- Maintain and improve knowledge of contract laws and best practices.
- Attend conferences, workshops, and training programs related to contract management.
Risk Management
- Identify potential risks and liabilities in contracts.
- Provide suggestions for minimizing risks associated with contract terms.
What Does a Contract Analyst Do?
A Contract Analyst typically works for corporations across various industries or legal firms, and they play a crucial role in ensuring the company’s contractual agreements are legally sound and beneficial.
They are responsible for reviewing, examining, and analyzing contract terms and conditions to ensure compliance with laws and regulations and to protect the organization from potential legal and business risks.
This can include identifying and mitigating financial risks, such as inappropriate pricing or potential for loss.
A Contract Analyst may also negotiate contracts with clients, vendors, partners, or other external parties.
They provide guidance and expert advice on contract matters to project managers or other operational staff, ensuring that the best possible legal and commercial terms are negotiated and adhered to.
Additionally, they often maintain and manage contract documentation, amendments, correspondences, and related information, while ensuring contracts are executed and stored properly.
In some cases, they may also be responsible for developing and implementing procedures for contract management and administration in compliance with company policy.
Their role requires strong analytical skills, keen attention to detail, and a good understanding of legal terminology, contract law, and procurement processes.
Essential Contract Analyst Skills
- Attention to Detail: Contract analysts deal with complex legal documents. Being detail-oriented is vital to identify inconsistencies, errors, and potential legal issues within contracts.
- Legal Knowledge: A strong understanding of contract law, corporate law, and other relevant legal fields is crucial. This includes knowledge of legal terminology and principles.
- Contract Management: Experience with contract management systems and processes is essential. This includes the ability to draft, review, and negotiate contracts.
- Communication: As a contract analyst, you’ll frequently interact with various stakeholders including suppliers, clients, and legal professionals. Therefore, clear and concise communication is crucial.
- Negotiation: This role often involves negotiation of contract terms. Hence, possessing strong negotiation skills is beneficial.
- Problem-solving: Contract analysts need to identify potential issues within contracts and propose solutions. Good problem-solving skills, therefore, are a must.
- Analytical Skills: A significant part of this role involves analyzing contracts to assess risks and benefits. So, strong analytical skills are necessary.
- Financial Acumen: Understanding of financial concepts, such as budgeting and forecasting, to evaluate the financial implications of contracts is important.
- Project Management: Contract analysts often juggle multiple contracts at once. Therefore, project management skills, including task prioritization and time management, are beneficial.
- Research Skills: Analysts often need to conduct in-depth research into legal precedents or industry standards. Hence, strong research skills are crucial.
- Microsoft Office: Proficiency in Microsoft Office, especially Word and Excel, is essential for creating and managing contracts.
- Teamwork: Collaboration is crucial in this role, as contract analysts often work with cross-functional teams, including legal, procurement, and finance departments.
- Confidentiality: Contract analysts deal with sensitive information. It’s essential to maintain confidentiality and comply with data protection policies.
- Regulatory Compliance: Understanding and ensuring compliance with relevant regulations and laws is a key part of the job.
- Decision-Making: Contract analysts need to make sound decisions based on their analysis, such as whether a contract represents a good deal or poses too much risk.
Contract Analyst Career Path Progression
The Foundation: Junior Contract Analyst
The journey typically begins as a Junior Contract Analyst.
At this stage, your responsibilities may include reviewing contracts, assisting in the preparation of contract proposals, and managing contract databases.
Here are some tips for success in this role:
- Learn Continuously: Stay updated with the latest regulations and trends in contract management.
- Seek Mentorship: Don’t hesitate to ask for guidance and advice from senior colleagues.
- Accuracy: Focus on detail and accuracy in reviewing and preparing contracts.
The Ascent: Contract Analyst
With experience and skill development, you transition into the role of a Contract Analyst.
Here, you handle more complex contracts, negotiate terms with clients, and ensure that contracts comply with legal requirements.
Here’s how to thrive in this stage:
- Negotiation Skills: Develop your negotiation skills to get the best contract terms for your organization.
- Communication: Maintain effective communication with all stakeholders to ensure contract compliance and resolution of any issues.
- Problem Solving: Be proactive in identifying potential contract issues and work towards their resolution.
Reaching New Heights: Senior Contract Analyst
The Senior Contract Analyst position is the next step in your career path.
At this stage, you are recognized for your expertise and leadership in contract management.
You may mentor junior analysts, manage key contracts, and help shape the organization’s contract policies and procedures.
To excel in this role:
- Mentorship: Share your knowledge and help junior analysts develop their skills.
- Strategic Thinking: Consider the big picture in contract management and make strategic recommendations.
- Leadership: Lead by example and drive contract compliance and efficiency in your organization.
Beyond the Horizon: Contract Manager and Beyond
As your career progresses, you may step into a leadership role such as a Contract Manager or Director of Contracts.
These roles involve overseeing all aspects of contract management, making strategic decisions, and leading a team of contract analysts.
Here’s what to focus on:
- Strategic Leadership: Drive contract strategies and shape the contract management direction of your organization.
- Management Skills: Develop strong leadership and communication skills to guide your team effectively.
- Regulatory Compliance: Stay updated with changes in regulations and ensure your organization’s contracts are compliant.
Pinnacle of Success: Chief Contract Officer
At the highest level of the contract analyst career path, you may become a Chief Contract Officer.
In this role, you’ll be responsible for shaping the contract management strategy of the organization, making key decisions, and leading larger teams.
Contract Analyst Salary
Entry-Level Contract Analyst
- Median Salary: $45,000 – $60,000 per year
- Entry-level contract analysts typically have 0-2 years of experience and often hold bachelor’s degrees in business, economics, or related fields. They assist in drafting, reviewing and negotiating contracts.
Mid-Level Contract Analyst
- Median Salary: $60,000 – $80,000 per year
- Mid-level analysts possess 2-5 years of experience and often take on more complex responsibilities in contract negotiation and analysis. They may also be required to supervise less experienced analysts.
Senior Contract Analyst
- Median Salary: $80,000 – $100,000 per year
- Senior analysts have 5+ years of experience and are responsible for leading contract negotiations, drafting complex contract terms, and acting as the primary point of contact for internal and external contract inquiries.
Lead Contract Analyst / Contract Manager
- Median Salary: $100,000 – $130,000+ per year
- These roles come with significant experience and often involve leading the contract management team, strategizing contract negotiations, and making key contract decisions.
Director of Contract Management
- Median Salary: $130,000 – $160,000+ per year
- This high-level position requires extensive experience and deep understanding of contract laws and negotiation strategies. Responsibilities often involve setting contract policies and ensuring compliance across the company.
Contract Analyst Work Environment
Contract Analysts typically work in office environments, often in the legal, finance, or procurement departments of corporations, government agencies, or consulting firms.
They spend much of their time reviewing and interpreting contract terms, communicating with other departments, and ensuring compliance with the rules and regulations of contracts.
Their work can be highly detailed and demands a high level of concentration and analytical skills.
The work schedule of a Contract Analyst is typically a standard 40-hour work week, but it may extend when dealing with complex contracts or approaching deadlines.
After gaining substantial experience and knowledge in the field, a Contract Analyst may advance to a senior position or choose to specialize in a specific industry or type of contract.
Some may even choose to use their skills to move into a consultancy role.
FAQs About Becoming a Contract Analyst
What is needed to become a contract analyst?
To become a contract analyst, you typically need a bachelor’s degree in business, finance, or a related field.
A degree in law can also be very helpful.
Key skills include a strong understanding of contract law, excellent research and analytical skills, attention to detail, and strong negotiation abilities.
You should also possess excellent communication skills, as you will often need to explain complex terms and conditions to non-legal professionals.
Some roles may require specific industry knowledge or certification in contract management.
How long does it take to be a contract analyst?
The time it takes to become a contract analyst can vary depending on your educational path and experience level.
If you pursue a traditional bachelor’s degree in a relevant field, it typically takes four years.
After graduation, you can start in entry-level positions and work your way up.
Some organizations may require additional professional qualifications or certifications, which may take an additional 1-2 years.
Can I be a contract analyst without a degree?
While it’s possible to become a contract analyst without a traditional four-year degree, most employers prefer candidates with at least a bachelor’s degree in a relevant field, such as business or law.
However, extensive work experience in areas such as procurement, finance, or contract management can potentially compensate for a lack of formal education.
Acquiring a certification in contract management could also improve your prospects.
Is being a contract analyst a stressful job?
Being a contract analyst can be stressful at times, as it involves dealing with complex contracts, tight deadlines, and high-stakes negotiations.
However, the level of stress can vary depending on the industry, the specific role, and the individual’s time management and problem-solving skills.
Many contract analysts find the job intellectually stimulating and rewarding, which can offset the stress.
What are the prospects for contract analysts in the next decade?
The prospects for contract analysts are generally positive over the next decade.
As businesses continue to grow and become more global, the need for professionals who understand contract law and can effectively negotiate and manage contracts will likely increase.
Additionally, the rise of contract management software and AI tools offers opportunities for contract analysts to work more efficiently and focus on more strategic tasks.
Conclusion
There you have it.
Starting on the path to become a contract analyst may seem challenging, but the rewards are plentiful.
Equipped with the right skills, education, and determination, you are well on your way to making a significant impact in the dynamic world of contract management.
Remember, while the journey may be demanding, the opportunities are boundless. Your insightful analysis could lead to the next big contract that changes the course of a business, or even an industry.
So, take that initial leap. Immerse yourself in continuous learning. Network with industry professionals. And most importantly, never stop analyzing.
Because the business world is waiting for the insights you can provide.
And if you’re seeking personalized guidance on starting or advancing your career as a contract analyst, visit our AI Career Path Advisor.
This complimentary tool is designed to offer tailored advice and resources to help you steer your career path effectively.
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