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Contract Definitions

A contract is an agreement made between two or more parties that defines mutual rights and obligations on a specific subject. It is organized in a written or electronic format and comes into effect upon approval by the parties involved. Contracts are created to regulate the relationship between parties, clarify responsibilities, and minimize potential disputes.

In QDMS Now, a contract is used for tracking and managing agreements made with suppliers, customers, subcontractors, or other third parties. These contracts may relate to various operational processes such as service provision, outsourced work, calibration, certification, or material supply.

A contract record serves as a tool for digitally tracking and managing agreed services and their obligations. This process aims to improve efficiency by meeting both the operational and the legal requirements of the business.

Contract management is one of the key components of EAM systems, enabling businesses to more effectively manage costs, performance, and risk.

Advantages of Contract Management in EAM Systems​

  • Centralized Management: All contracts are stored and managed in a single digital platform, making information easily accessible.
  • Automated Alerts: Automated reminders can be created for contract renewal dates, warranty expirations, or maintenance agreement timelines.
  • Cost Control: Expenditures related to contracts can be analyzed to optimize costs.
  • Legal Compliance: The compliance of contracts with applicable laws can be easily monitored, and access to records is simplified.
  • Performance Monitoring: The performance of suppliers or subcontractors can be evaluated in terms of their adherence to contract terms.
  • Risk Management: Risks such as delays or breaches can be managed more quickly and effectively through the digital system.

Contract Definition Operations​

In the contract listing and record pages, all standard functions such as exporting to Excel, filtering, and changing field visibility are fully functional. These standard functions are detailed under the General System Usage section.

Contract Definition Page​

This page is used to create a new contract definition or edit an existing contract definition.

Code: The contract code refers to a unique code used for defining the contract. A short and meaningful code should be entered.

Name: The contract name field contains a description of the contract. This description provides information about the scope of the contract, its uses, and features.

Description: This field can be used to provide additional explanations or details about the contract. This field is optional.

Contract Type: This field specifies the type of the defined contract. To enter data in this field, contract types must first be defined in Contract Type.

Contract Status: This field specifies the status of the defined contract. Options such as Active, Pending, Awaiting Renewal, and Completed can be selected.

Automatically Renew?: This field provides information on whether the defined contract will be automatically renewed.

Notes: This field contains notes related to the contract and is optional.

Send Alerts?: This field specifies whether notifications will be sent related to the contract.

Alert Threshold (Days): This field becomes active when "Send Alerts?" is selected. It contains information on how many days in advance alerts should be received.

Alert Settings: This field contains information about the alert, such as who the alert will be sent to, the title, and the content.

Assets: This field contains information about the assets related to the defined contract and is optional.

Related Contracts: This field lists contracts that are related to the defined contract, such as previous versions, new versions, or renewal agreements.

Additional Documents: This field is used to attach documents like PDFs or images that should be associated with the contract. This field is optional.

Contract Information​

  • Version: Contains information about the version of the contract.
  • Version Status: Specifies the status of the contract version. Options include Active, Pending Approval, Rejected, or Inactive. If a new version of the contract is approved, the status of the last approved version will automatically be set to inactive.
  • Start Date: Contains information about the start date of the contract.
  • End Date: Contains information about the end date of the contract. A value earlier than the start date cannot be entered.
  • Account: Contains information about which account the contract was signed with. To enter data in this field, account definitions must first be made in Account.
  • Contract Value: This field holds the value of the contract.
  • Terms: This field is where the terms of the contract are entered and is optional.
  • Renewal Terms: This field is where the renewal terms of the contract are entered and is optional.
  • Images: This field allows the entry of visual content related to the contract and is optional.

Authorization and Access Control​

Issues related to authorization and access control are detailed under the User Management and Authorization section.

Contract Manager Role​

  • Create: Authorization to create new contracts.
  • Edit: Authorization to edit contracts.
  • Delete: Authorization to delete contracts.
  • Batch Operations: Authorization to perform batch operations such as export and import.
  • Design: Authorization to design contract-related pages.

Contract Contributor Role​

  • Create: Authorization to create new contracts.
  • Edit: Authorization to edit contracts.

All Users​

  • All users can use the created contracts in other modules.

Alerts and Error Messages​

  • Unique Contract Code: If an attempt is made to save a contract with the same code, the system will give a warning.
  • Mandatory Fields Left Blank: If mandatory fields such as the contract code or name are left blank, the system will give a warning.
  • Cannot be less than 0 warning: The Alert Threshold (Days) and Contract Value fields cannot be entered as less than 0.
  • Invalid End Date: If the End Date is selected earlier than the Start Date, the system will give a warning.

User Tips and Best Practices​

  • Keep Detailed Records: Enter all contract-related information (dates, scope, SLA, parties) in the EAM system completely.
  • Use Alerts Effectively: Set up automated reminders for contract end dates, warranty expirations, and payment schedules to prevent delays.
  • Consider Using Digital Signatures: Facilitate faster and more secure contract approvals with legally valid digital signatures.
  • Generate Performance Reports: Regularly analyze whether the commitments outlined in the contracts are being fulfilled.
  • Create Standard Templates: Prepare standard templates for different contract types. This accelerates processes and reduces the error margin.

Frequently Asked Questions​

Why Should the Contract Code Be Unique?​

Unique contract codes contribute to data accuracy, operational efficiency, and legal compliance, ensuring smoother and safer management of business processes.

What Should I Write in the Contract Definition?​

In the contract definition, you should clearly explain the type and purpose of the contract. This definition provides information about the scope of the contract, its uses, and features.

What Should I Do If I Define a Contract Incorrectly?​

If a contract is defined incorrectly, you can edit or, if necessary, delete the contract record.

Can I Change a Contract Code or Definition Later?​

Yes, the contract code and definition can be changed later. However, this will also affect previously used records, so it should be done with care. If it is intended for a different purpose, a new contract definition should be made.

Is There a System Limit for Contract Types?​

Contract types typically do not have a numerical limit in the system.