How to Become a Contract Manager (Deal-making for Success)

If you’ve ever envisaged managing crucial contracts that shape business success or pondered over the requirements to become a contract manager, you’re at the right spot.

In this guide, we’ll delve into the EXACT steps you need to undertake to kick-start your career as a contract manager. We’ll discuss:

The skills you need.
The education that can assist you in reaching your goal.
How to secure a job as a contract manager.

So, whether you’re a novice in the field of contract management or a business professional seeking to upgrade your skills, stay tuned.

We’re about to unfold the roadmap to becoming a contract manager.

Let’s get started!

Contents show

Steps to Become a Contract Manager

Step 1: Understand the Role of a Contract Manager

Before jumping into any career, it’s essential to understand the job role and responsibilities associated with it.

A Contract Manager is the professional in charge of ensuring that contracts entered into by their organization are beneficial, legally sound and adhere to company policies.

They are responsible for managing all aspects of contracts from negotiation, drafting, execution to monitoring and termination.

A Contract Manager also ensures that all parties involved in the contract fulfill their responsibilities as outlined in the agreement.

They play a crucial role in minimizing financial risk, protecting the company’s interests, and ensuring contractual obligations are met in a timely manner.

It’s important for prospective Contract Managers to also understand that they will often serve as the primary point of contact for clients and vendors during the contract negotiation phase.

This requires excellent communication skills, a high level of attention to detail, and a strong understanding of business law and principles.

A Contract Manager should be well versed in legal terminology, possess strong analytical skills, and have the ability to interpret and explain contract terms and conditions to stakeholders.

They should also be able to handle pressure well, as they often have to deal with tight deadlines and complex negotiations.

Understanding these expectations and requirements can help guide your educational and professional development choices as you pursue a career as a Contract Manager.

Step 2: Acquire Relevant Education

Pursuing a career as a Contract Manager requires an understanding of business law, financial acumen, and excellent negotiation skills.

To acquire these skills, it’s important to obtain a relevant degree.

Most contract managers start with a bachelor’s degree in business, finance, or a related field.

A degree in business management or administration could provide you with the foundation of business law, finance, and operations management, vital for a contract manager.

On the other hand, a degree in finance could enhance your understanding of financial aspects such as budgeting, cost analysis, and forecasting, which are crucial in contract management.

To further enhance your career prospects, consider pursuing a postgraduate degree, such as a Master’s in Business Administration (MBA), or a law degree.

These degrees would provide a broader understanding of business and legal aspects, respectively.

During your studies, pay particular attention to courses on contract law, business law, negotiation, and procurement.

These will help you to understand the complexities of contracts, deal-making, and the acquisition of goods and services.

Remember, the aim is not just to pass your exams but to acquire the knowledge and skills necessary for effective contract management.

So, consider seeking internship opportunities or part-time jobs that allow you to gain practical experience in contract management while still studying.

This can give you a competitive edge when entering the job market.

Step 3: Gain Practical Experience

Having a strong educational background is beneficial, but hands-on experience is equally important when pursuing a career as a Contract Manager.

Ideally, you will want to gain practical experience in contract management or a related field such as procurement, sales, law, or business management.

You can start by applying for internships, part-time jobs, or entry-level positions that offer exposure to contract management.

This could be within a legal department, procurement team, or sales department.

Remember that the more hands-on experience you gain, the better you will be at understanding and managing contracts.

It is also beneficial to understand different aspects of business like negotiations, vendor management, auditing, risk assessment, and relationship management as these are often part of a Contract Manager’s role.

This practical experience will not only help you understand the complexities of contracts but also develop essential skills like negotiation, critical thinking, and problem-solving.

Moreover, you can also gain experience by volunteering for contract-related tasks in your current role or asking to shadow a Contract Manager to understand their daily activities and responsibilities better.

This will give you a first-hand experience of the role and help build your network within the industry.

Remember, the goal is to gain as much experience as possible and learn about various types of contracts, clauses, terms, and conditions, as well as contract negotiation, implementation, and compliance management.

This will strengthen your resume and increase your chances of securing a role as a Contract Manager.

Step 4: Develop Key Skills

As a Contract Manager, there are several key skills you need to develop that will prove vital for your success in this role.

These skills include:

Negotiation Skills: You will be involved in negotiating terms of contracts with various parties, and therefore, you need to be good at reaching an agreement that is beneficial to your organization.

Communication Skills: Contract managers are required to liaise with different departments in an organization as well as external stakeholders.

Strong written and verbal communication skills are, therefore, essential.

Organizational Skills: Managing multiple contracts at the same time requires good organizational skills.

You need to manage all contracts effectively and ensure they are kept up to date.

Attention to Detail: Contracts are legal documents and hence require a high level of accuracy and precision.

Any discrepancy can have serious implications for the organization.

Legal Knowledge: Having a sound understanding of the legal aspects related to contracts is crucial in this role.

This includes knowledge of contract law, commercial law, and the specific laws and regulations that apply to your organization’s industry.

Problem-solving Skills: There may be disputes or issues related to contracts that need resolution.

The ability to think critically and come up with effective solutions is a key requirement.

You can develop these skills through relevant work experience, professional development courses, or further education.

It’s also beneficial to keep abreast of industry changes and trends that may affect contracts.

Step 5: Get Certified

Once you have gained some experience in contract management and have a solid understanding of the field, it may be beneficial to get certified.

This is not a necessary step to become a contract manager, but certification can make you more competitive in the job market and may lead to higher earning potential.

There are several certifications you can pursue, such as the Certified Professional Contracts Manager (CPCM) offered by the National Contract Management Association (NCMA).

The CPCM certification is considered the highest standard for contract management professionals and requires a comprehensive understanding of the contract management field.

To qualify for the CPCM certification, you need a certain number of years of contract management experience, a specific amount of continuing professional education, and you must pass a comprehensive exam.

If you don’t have the required experience, you can also consider the Certified Federal Contracts Manager (CFCM) or Certified Commercial Contracts Manager (CCCM) certifications, which have fewer prerequisites.

Getting certified shows potential employers that you are committed to the contract management profession and have met a recognized standard of excellence in the field.

It can also provide you with additional knowledge and skills to perform your job more effectively.

Remember, while certification can provide an advantage, practical experience and a solid understanding of contract management principles are equally important.

Step 6: Build a Professional Network

As you progress in your journey to become a Contract Manager, it’s important to build a professional network.

This can be achieved by attending industry events, participating in professional organizations, and engaging with peers and industry experts on professional networking sites, such as LinkedIn. You may also consider joining relevant groups and forums, both online and offline, related to contract management and your industry.

Building a professional network will allow you to learn from experienced contract managers and gain insights into the industry.

It will provide opportunities to stay updated about the latest trends, issues and developments in the contract management field.

Moreover, these connections can provide advice, offer job opportunities, or serve as references in the future.

Remember, networking is not just about taking, it’s also about giving.

Share your own knowledge and experiences, provide assistance to others when you can, and maintain a positive and professional attitude.

This will enhance your reputation within your network and increase opportunities for advancement in your career as a Contract Manager.

Step 7: Understand Industry-Specific Regulations

As a Contract Manager, you must have a comprehensive understanding of industry-specific regulations and laws relevant to the sector in which your company operates.

Different industries, such as healthcare, construction, IT, or financial services, each have unique legal requirements and contractual standards.

Your familiarity with these industry-specific laws will assist you in drafting, reviewing, and negotiating contracts that are legally sound and protect your organization’s interests.

Consider attending seminars, workshops, or courses that focus on these legal aspects and keep up to date with any changes in law or industry standards.

You may also find it beneficial to join professional associations relevant to your industry, as these often provide resources and information relating to legal issues in the industry.

Understanding industry-specific regulations isn’t merely about knowing the law.

It also involves applying that knowledge to the contracts you manage.

Therefore, it is important to continuously learn and apply these principles to your daily tasks as a Contract Manager.

Additionally, understanding the impact of these regulations on your business operations will help you anticipate potential legal challenges and proactively address them in the contracts.

Step 8: Stay Updated with Laws and Best Practices

As a Contract Manager, it’s imperative that you remain well-versed with the latest laws, regulations, and best practices applicable to your industry.

Since contract management often involves legal implications, you must have a comprehensive understanding of local, national, and international laws that govern your business.

This knowledge will help you draft, review, and manage contracts effectively.

Staying updated with the best practices in contract management will also assist you in streamlining the process, mitigating potential risks, and improving the overall efficiency.

These best practices may relate to negotiation strategies, contract tracking, risk management, compliance, or dispute resolution.

You can stay updated by attending workshops, webinars, industry conferences, and training programs.

Subscribing to industry journals, magazines, or newsletters and being a part of professional organizations or online communities can also provide a wealth of knowledge and insights.

In addition to this, pursuing advanced certifications in contract management or related fields can help deepen your understanding and expertise.

Remember, continuous learning and staying abreast of the latest trends is key to your success as a Contract Manager.

Step 9: Gain Proficiency with Contract Management Software

As a Contract Manager, it’s vital to be proficient in using contract management software.

These tools are specifically designed to manage contracts efficiently from start to finish.

They encompass everything from the creation and approval of contracts, through negotiation and modifications, to monitoring the fulfillment of the contract terms.

Different organizations use different contract management software systems, some of which include Ariba, Conga, and JAGGAER.

Hence, it would be advantageous to familiarize yourself with the most commonly used software in the industry.

Training for contract management software use can come in the form of on-the-job training, online tutorials, or formal courses.

It’s important to remember that while gaining proficiency in these tools is essential, understanding the basic principles of contract management is equally necessary.

Being adept at using these software systems can significantly improve your efficiency as a Contract Manager, allowing you to organize and track contracts more effectively.

This not only minimizes errors and risks but also ensures that all contractual obligations are met within the specified timeframe.

Moreover, proficiency in contract management software can be a strong selling point in your CV, setting you apart from other candidates and increasing your chances of securing a rewarding role as a Contract Manager.

Step 10: Apply for Contract Management Roles

After obtaining the necessary qualifications and gaining relevant experience, you can start applying for contract management roles.

Look for job listings online on job search websites or on company websites in industries that interest you.

Companies in industries like construction, government, healthcare, or technology often require contract managers.

Ensure to tailor your resume and cover letter to each job you apply for, highlighting your skills, qualifications, and experience that make you a good fit for the position.

In your cover letter, discuss specific contracts you’ve worked with and how your management of these contracts benefited your previous employers.

Leverage your professional network to find out about potential job opportunities.

Attend industry events, job fairs, or networking events to meet potential employers and learn about new job openings.

Remember, some jobs are not advertised, and knowing the right people can help you land these roles.

Finally, prepare for your job interviews.

Be ready to discuss your approach to contract management, give examples of situations you’ve handled, and demonstrate your knowledge of contract law and negotiation techniques.

Be confident and professional to impress potential employers.

Step 11: Demonstrate Your Value in Interviews

As a prospective Contract Manager, you need to effectively communicate your skills, experience, and value during interviews.

This involves demonstrating how your knowledge and capabilities align with the specific requirements of the role.

One of the ways to do this is by highlighting your expertise in contract negotiation, drafting, and compliance.

Show your understanding of legal terms and concepts, as well as your ability to assess, mitigate, and manage risk.

Also, emphasize your communication and relationship-building skills.

In your responses, provide examples of how you have successfully negotiated terms, resolved disputes, or worked with cross-functional teams in your past roles.

Another crucial point to put forward is your problem-solving abilities and analytical thinking.

Discuss situations where you have used these skills to deliver effective contract management solutions.

Lastly, demonstrate your understanding of the industry.

Discuss how you keep yourself updated with the current regulations and trends in contract management, and how you would apply this knowledge in your role.

Remember, each interview is an opportunity to showcase your value as a Contract Manager.

Be prepared, be confident, and articulate your value proposition clearly.

Step 12: Seek Continuous Professional Development

As a Contract Manager, it’s crucial to invest in continuous professional development to stay competitive in the industry and enhance your career progression.

The field of contract management is constantly evolving with new laws, regulations, and best practices.

Consequently, staying current with these changes is essential.

There are many ways to maintain continuous professional development.

One can attend workshops, seminars, and training courses, both online and offline, focused on contract management.

These platforms provide opportunities to learn new skills and tools, understand emerging trends, and broaden your knowledge in areas like risk management, negotiation, procurement, and compliance.

In addition, joining professional organizations in contract management can be beneficial.

These organizations often host networking events and provide resources for professional development.

They also offer certification programs for contract managers.

Getting certified not only validates your skills and knowledge but can also significantly improve your career prospects.

Furthermore, reading industry publications, attending webinars, and participating in online forums and communities can help you stay informed about the latest developments in contract management.

Remember, the learning doesn’t stop after receiving your degree or getting a job.

Continuous learning and professional development are key to staying ahead in the dynamic field of contract management.

Contract Manager Roles and Responsibilities

Contract Managers oversee projects performed in partnership between one organization and another.

They ensure that contracts are carried out according to the agreed terms, manage contract creation, execution, and analysis for maximizing operational and financial performance and minimizing risks.

They have the following roles and responsibilities:

Contract Development

Develop, review and approve contracts.
Negotiate contract terms with internal and external business partners.
Collaborate with different teams to ensure contracts align with company goals and strategies.

Contract Administration

Manage the execution of contracts, ensuring compliance with the terms and conditions.
Monitor the performance of the contract and make necessary amendments.
Coordinate with finance and legal departments to ensure proper billing and resolve issues.

Risk Management

Identify and manage contractual risks.
Develop risk mitigation strategies.
Communicate potential risks to relevant stakeholders.

Problem Solving

Resolve any existing contract conflicts.
Develop solutions for complex contract issues.
Propose strategies to improve efficiency and effectiveness of contract administration.

Reporting

Prepare and present reports on the status of contracts.
Produce and update contract records and maintain detailed contract documentation.

Collaboration

Work closely with cross-functional teams (legal, finance, operations).
Facilitate communications between business units.

Regulation Compliance

Ensure all contracts comply with laws, regulations and organizational policies.
Maintain awareness of new and revised regulations.

Contract Renewal

Manage contract renewal processes.
Negotiate terms and conditions for contract renewals.

Training and Development

Provide training to team members and other staff on contract management procedures and policies.
Stay updated with the latest developments in contract law and regulations.

Communication

Communicate contract policies and processes effectively to internal and external stakeholders.
Ensure clear communication between all parties involved in a contract.

Continuous Improvement

Identify opportunities for process and policy improvements.
Implement changes in procedures and standards to improve efficiency.

What Does a Contract Manager Do?

Contract Managers are typically employed by corporations, organizations, or government agencies.

They can also work as independent consultants.

They oversee and manage contracts, from initiation through to execution, ensuring that all parties involved fulfill the necessary terms and conditions.

They work closely with legal departments, finance teams, and procurement teams to negotiate contracts, manage contract renewals, and resolve any contractual issues.

Their role involves comparing the contract outcomes with the original objectives to ensure satisfaction and compliance.

This includes reviewing contracts to identify risks or non-compliance with regulations, and mitigating those risks.

They are also responsible for maintaining accurate contract documentation, tracking changes, and ensuring all contracts are stored and filed correctly.

In addition, they may be called upon to provide training and guidance to other staff members on contractual matters.

This could include explaining the terms of a contract, advising on contract management procedures, or providing advice on contract negotiations.

The Contract Manager plays a critical role in maintaining relationships with vendors, suppliers, and partners, and they must be skilled in negotiation, communication, and risk management.

Essential Contract Manager Skills

Negotiation: Contract managers are often responsible for negotiating terms with suppliers, clients, and other stakeholders. They must be able to secure favorable terms and resolve disputes effectively.
Communication: Clear and concise communication is crucial for contract managers. They need to express complex contract terms in an understandable way and liaise between different parties.
Detail-Oriented: Contracts involve intricate details and clauses. Contract managers must be detail-oriented to ensure all contract elements are accurate and meet the organization’s needs.
Legal Knowledge: Understanding of legal principles related to contracts, such as contract law, commercial law, and intellectual property rights, is vital. It helps in drafting, reviewing, and managing contracts in compliance with legal requirements.
Project Management: Contract managers often manage multiple contracts simultaneously. Project management skills, such as planning, coordinating, and monitoring tasks, are essential to ensure the smooth execution of contracts.
Risk Management: Identifying, assessing, and mitigating contract-related risks is a key responsibility of contract managers. They must be capable of developing strategies to handle potential risks and uncertainties.
Financial Acumen: Understanding of financial principles is required to evaluate contract profitability, manage budgets, and ensure cost-effectiveness.
Interpersonal Skills: Contract managers interact with various stakeholders, including clients, suppliers, legal teams, and senior management. Strong interpersonal skills are essential for building positive relationships and facilitating collaboration.
Problem-Solving: Issues may arise during the contract lifecycle. Contract managers must be adept at solving problems, resolving disputes, and finding mutually agreeable solutions.
Contract Lifecycle Management: Knowledge of the entire contract lifecycle, from initiation and negotiation to execution and renewal, is crucial. It helps in managing contracts effectively and ensuring compliance at every stage.
Technical Skills: Proficiency in contract management software and tools, such as contract repositories, e-signature solutions, and document management systems, is necessary for efficient contract administration.
Leadership: Contract managers often lead the contract management process, coordinating with various teams and stakeholders. Leadership skills are essential for driving the process forward and ensuring the team’s performance.
Analytical Skills: Contract managers must analyze contract performance, financial data, and market trends to make informed decisions and recommendations.
Adaptability: Contract managers may deal with changing business requirements, market conditions, and regulatory environments. Adaptability is key to adjusting strategies and handling unexpected changes effectively.
Ethics: Adherence to ethical standards is crucial in contract management. Contract managers must ensure fair dealings, maintain confidentiality, and comply with ethical and legal norms.

Contract Manager Career Path Progression

The Foundation: Junior Contract Manager

In the beginning of your career journey, you are likely to start as a Junior Contract Manager.

At this stage, you will be immersing yourself in the world of contract management, learning about different contractual obligations, legal terms, and negotiation techniques.

Your responsibilities may include assisting with contract preparations, maintaining contractual records, and supporting the senior contract managers in their tasks.

Here are some tips for success in this role:

Learn Continuously: Keep yourself updated with the changes in contract laws and management techniques.
Seek Mentorship: Take guidance from senior colleagues to understand the nitty-gritty of contract management.
Attention to Detail: Develop the habit of reading contracts carefully and understanding all clauses and terms.

The Ascent: Contract Manager

With gained experience and knowledge, you will progress to the role of a Contract Manager.

Your responsibilities will expand to include drafting contracts, negotiating terms, and handling breach of contract issues.

Here’s how to thrive in this stage:

Negotiation Skills: Hone your negotiation skills to ensure the best terms for your organization.
Problem Solving: Develop your ability to resolve contractual issues smoothly.
Interpersonal Skills: Build strong relationships with stakeholders to facilitate successful contract management.

Reaching New Heights: Senior Contract Manager

The next step in your career path is the position of a Senior Contract Manager.

At this stage, you are a skilled professional who guides the team on complex contractual issues, takes lead on high-value contracts, and mentors junior team members.

To excel as a Senior Contract Manager:

Mentorship: Share your expertise and help junior contract managers develop their skills.
Strategic Thinking: Consider the bigger picture when drafting and negotiating contracts.
Leadership: Inspire your team with your expertise, work ethics, and problem-solving capabilities.

Beyond the Horizon: Contract Director and Beyond

As your career evolves, you may ascend to the position of a Contract Director or a VP of Contracts.

These roles involve strategic decision-making, maintaining corporate relationships, and overseeing the entire contract management process.

Here’s what to focus on:

Strategic Leadership: Drive strategic initiatives and shape the direction of your organization’s contract management process.
Management Skills: Develop robust leadership and communication skills to manage your team effectively.
Innovation: Keep abreast with the latest contract management tools and technologies to streamline the process.

Pinnacle of Success: Chief Contracts Officer

Reaching the apex of the career ladder, you may assume the role of a Chief Contracts Officer.

Here, you will be responsible for formulating contract policies, guiding the organization’s contractual strategy, and making critical decisions related to all contractual matters.

Contract Manager Salary

Entry-Level Contract Manager

Median Salary: $50,000 – $70,000 per year
Entry-level contract managers typically have 0-2 years of experience and usually hold a bachelor’s degree in business administration, law or a related field.

Mid-Level Contract Manager

Median Salary: $70,000 – $90,000 per year
Mid-level contract managers have 2-5 years of experience and often handle more complex contracts and agreements, requiring a high level of negotiation skills and legal knowledge.

Senior Contract Manager

Median Salary: $90,000 – $120,000 per year
Senior contract managers possess 5+ years of experience and are usually responsible for leading contract negotiations, ensuring compliance with regulations and laws, and mentoring junior contract managers.

Lead Contract Manager / Contract Management Director

Median Salary: $120,000 – $150,000+ per year
These roles come with significant experience and often involve leadership, strategic planning, risk management, and decision-making on a large scale.

Chief Contracting Officer

Median Salary: $150,000 – $200,000+ per year
This high-level position requires extensive experience and deep legal and business expertise, and often involves setting contracting strategies for a company.

Contract Manager Work Environment

Contract Managers typically work in offices, often within the legal, procurement or finance departments of various industries such as construction, healthcare, technology, or government agencies.

They also frequently interact with other departments and external parties to negotiate, oversee, and manage contracts.

Contract Managers usually work standard business hours, although they may need to work additional hours when handling complex contracts, negotiation deadlines, or when dealing with international partners across different time zones.

As they gain experience and knowledge in their field, Contract Managers may advance into more senior roles, such as Contract Director or Head of Procurement, or they may choose to specialize in specific industries or types of contracts.

The role of a Contract Manager often involves a significant amount of desk work, reading, and paperwork, but it also includes meetings and discussions with internal and external stakeholders.

It’s a role that requires strong attention to detail, excellent organization, and good communication skills.

The work environment can be fast-paced and demanding but also rewarding for those who enjoy problem-solving, negotiation, and strategic planning.

FAQs About Becoming a Contract Manager

What qualifications do I need to become a Contract Manager?

To become a Contract Manager, you typically need a bachelor’s degree in business, law, finance, or a related field.

Some roles may also require a master’s degree or certain professional certifications.

Additionally, you should have a strong understanding of contract law and negotiation techniques.

Key skills include attention to detail, organizational abilities, analytical thinking, and excellent communication and interpersonal skills.

Experience in contract administration or related roles can also be beneficial.

How long does it take to become a Contract Manager?

The time it takes to become a Contract Manager can vary depending on your educational path and experience.

A bachelor’s degree typically takes four years to complete, and some roles may require further education or certification, which can take additional time.

Furthermore, gaining practical experience in contract administration, either through internships or entry-level roles, is often crucial for securing a Contract Manager position.

Can I become a Contract Manager without a degree?

While it’s possible to become a Contract Manager without a degree, most employers prefer candidates with a bachelor’s or master’s degree in a related field.

Relevant work experience, expertise in contract law, and strong negotiation and communication skills can also be important.

However, lacking a degree may limit your opportunities, particularly for more senior or specialized roles.

Is being a Contract Manager a stressful job?

Being a Contract Manager can be stressful at times, as it involves managing multiple contracts, dealing with complex legal issues, and often working under tight deadlines.

However, the level of stress can vary depending on the organization, the nature of the contracts, and the individual’s stress management skills.

Many Contract Managers find the role fulfilling and enjoy the challenge of negotiating and managing contracts.

What are the career prospects for Contract Managers in the future?

The career prospects for Contract Managers are positive.

As businesses continue to expand and form new partnerships, the need for professionals who can effectively manage contracts and legal relationships will likely remain high.

Contract Managers may also have opportunities for advancement into senior management or executive roles, or they may choose to specialize in a specific area of contract management.

Conclusion

And there you have it.

Beginning your journey to become a contract manager is no easy task, but it’s undeniably gratifying.

Equipped with the right skills, education, and determination, you’re already halfway there to making a significant difference in the world of contract management.

Remember, the road may be demanding, but the opportunities are boundless. Your contributions could be the driving force behind successful business deals and partnerships.

So, take that first step. Immerse yourself in knowledge. Network with industry professionals. And most importantly, never stop honing your negotiation and management skills.

Because the business world is eagerly awaiting the value you can bring.

And if you’re seeking personalized guidance on starting or advancing your career in contract management, explore our AI Career Path Advisor.

This complimentary tool is specifically designed to provide tailored advice and resources to help you effectively navigate your career path.

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