The Basics of Contract and Contract Management Software

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Contract Management Software

A contract, in the basic sense, is a document that is verified legally and protects the interests of all the involved parties. They possess legal soundness that dictates the course of a business and the relationship it has with its partners, sellers, customers and employees. A company without a legally verified contract is deemed to be risky to trade with since there is no legal obligation or compliance, which can result in adverse effects for the trading partners. So its always better to go with the best contract management software.

Contract management involves the administration of the entire process of contracts right from creation to execution. Contract managers and qualified professionals are usually hired to manage the contractual process. However, traditionally, the contract management process was done manually by a large team who physically handled, managed, and stored the contracts. The manual process posed several problems and increased the overall cost of managing the contracts by manifold. 

Enterprise Contract Management Software has completely revamped the process of managing contracts. The software upgraded and improved the management of contracts through its salient features and an array of benefits. It overcame the many limitations of the manual management of contracts and provided organizations with a handy and advantageous tool in the way of software. 

The important beneficial features of the Contract Management Software System include,

  • Centralized Repository System

 A distinctive feature that sets the contract management software apart is its centralized repository system. The central repository is where all the contract documents are stored securely. With the central repository, the contract managers can easily manage the contracts and retrieve it at any time for effective management. The contracts can be classified smartly and be managed with efficiency.

  • Dashboard

 Contract management tools such as customisable dashboard, helps the users to navigate around the software with ease. With the dashboard feature, the contract managers can get an insight into the number of ongoing contracts and their performance during a stipulated period.

  • Security through contract management software

Contracts are sensitive documents that have legal soundness and are valid in the court of law. Hence, the contract documents are to be protected effectively. Unlike the manual system, the contract management software offers a sturdy security system where the administrators can apply the hierarchy and give permission to access the documents selectively. Through this system, security can be ensured by way of limiting the authority of the people who can handle and manage the documents. Contract Management Software is equipped with features such as E-signatures or digital signatures, authorized access, encrypted data, and other security features that make it an ideal and secure platform to manage all your sensitive data. It enables the managers to moderate the platform efficiently without any room for errors or forced entry by unauthorised members.

  • Notifications 

The contract management software can be effectively automated by way of incorporating the notifications feature. With this feature, the contract managing team can be duly notified of the important dates and times as to the renewals and cancellations of the contracts. It is hugely beneficial for companies that deal with several contracts where the timeline might get intertwined and create confusion. The feature also saves the company from having potential financial losses due to expired or unmanaged contracts.

  • E-Signature 

The whole purpose of choosing reliable contract management software is to completely digitize the process of managing contracts and documents for effective administration. A reliable and competent software must have the provision for the integration of e-signatures which would simplify the contract process. E-signatures has greatly simplified the process of contract approval. Unlike the manual method, the E-signature provision enables the involved parties to sign the contract securely and notify the partners immediately thereby saving time and effort. Provisions for the integration of sites such as DocuSign and Adobe Sign can ensure a safe and secure signature retrieval.

  • Reporting 

Another distinctive feature of the contract management software is its reporting system. The success or the failure of a contract can be estimated only through its performance during a given period. It is difficult to cultivate the results manually using the contract document alone. With the software, however, the managers can easily ascertain the performance by viewing the metrics and gauge the success or the failure. It also provides a great insight into the contract performance that the managers can forecast on the future deals for the business. Through the reporting system, the company can establish compliance, transparency and performance measurement.

  • Collaboration 

Collaborate with the business partners of team members in the CLM software for better transparency and understanding. It is easy to keep the relevant people in the loop by giving them access and work along in getting the contract executed. The cloud-based system has enabled the team to work remotely and yet be connected and informed of all the progressions relating to the contracts.

  • Analytics 

One feature that instantly raises the Contract management tool above the manual contract management is the ability to analyze and report on the performance. A contract can be tracked throughout its lifecycle, stay on top of deadlines, make amendments, and report on the performance of the contracts efficiently.

  • Increased Productivity 

The contract management software enables the managing team to work proactively through its various salient features. The cloud-based system allows the team to work on the contracts from anywhere at any time. It helps the company to maintain its business continuity even during uncertain times. The contract managing team can easily and effectively create, control and execute contracts and automate the entire process by using pre-defined templates and notification features, assess the trends before establishing a contract and many more such advantageous activities with contract management software. It helps in increasing the overall productivity of the team by streamlining the process of contract management. 

Contract Management Software is an all-encompassing system that enables the organization to bring order and coherency to the process of managing contracts. Embracing and installing a reliable and sturdy contract management software will have long-term positive effects on the organization by streamlining and perfecting the procedure of creating and executing contracts.

Creating a successful and well-executed contract is a seamless culmination of proper redlining, collective negotiation and meticulous editing. This process may appear cumbersome and complicated, but with the appropriate strategy, a revolutionary Contract Management Software and the right tools, it can turn out to be the easiest part of the entire contracting process.

Every contract is collaborative, is scrutinized by multiple eyes and has numerous teams working on it at any given point in time. Hence, keeping thorough records of alterations is critical to the integrity and security of a contract. If the collaboration is not proper or numerous systems make up the process, the result might not be favourable. A direct approach that should have taken limited time has now expanded into weeks or months of finalization upsetting internal and external teams. This, in turn, attributes to friction, increased work-load and can dry up sure-shot promising deals for any business.

DocuCollab Contract Management Software is a sure shot way to automate and accelerate your contracts, proposals, quotes and other document transactions by up to 70% and avoiding the abovementioned problems. Besides, we have compiled a list of six tips for managing edits and negotiations.

Research, research and research some more about Contract Management software

Each side wants the best deal in negotiations of all kinds. Transparent and beneficial terms are of paramount importance besides assuming the right amount of risk. A properly negotiated contract also forms the basis of strong future relationships, an additional incentive. Meticulous preliminary research is pivotal before the commencement of negotiations. Inside-out knowledge of the prevailing regulations, best practices, basic industry practices and the account of the other party is mandatory to ensure seamless contracting. Mastering the art of negotiating reasonably promotes good relationships both now and for the future.

Engage Legal as early as possible!

The Legal Department of any organization is an indispensable asset. Legal should be a part of the contracting process from the get-go as they play critical roles in reviewing and drafting contracts. Legal reviews each contract meticulously to ensure they’re compliant and is furnished with all the necessary information to altogether avert any form of liability in the long run. Legal also takes care of the way words are used in contract besides being the second set of eyes. They also offer extensive and comprehensive legal knowledge to ensure the creation of the best possible contract.

Legal advisors are thoroughly adept at understanding and identifying key areas which might have been omitted in addition to keeping a tab on negotiation discussions. Their unique viewpoints and legal proficiency ensure that there are no missed terms or clauses in any contract.

Always remember, collaboration is the key!

An appropriate balance between productive competition and effective collaboration is the key. The legal team and the rest of the departments involved, be it, Procurement, Operations, or Sales should seamlessly join their efforts to ensure an optimized contracting process. When a document gets reviewed by multiple people of different teams, the likelihood of compliance issues and unwarranted mistakes are reduced drastically. When members of different departments work in tandem, an organized system appears to emerge and leads to success in the majority of the processes.

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