Contract management refers to various computer programs and instructions designed to streamline and digitize legal operations. Contract management aims to make the contract process more efficient.
Many organizations use this software to create, negotiate and sign new contracts without a lot of labor force. It also reduces frictions that may arise due to poorly managed contract processes. Here are the key functions of contract management software.
Creation of contract repository
A contract repository is a centralized place where the organization stores contracts and other related documents. This may include the engagement rules, the terms involved, and the dates that different contracts were signed. All this information is essential for a productive working relationship between all the involved parties.
Contract redlining software has the most compelling features that are used for the creation of contract repositories. The features can add meta tags that help different parties locate contracts. SirionLabs brings together category-leading innovations through contract management software to help the company contract smarter than before.
For workflow to be effective in most organizations, there are many repetitive tasks involved. Without contract management software, it can be boring to work on the same circuitous paths for most employees. Both parties spend lots of hours reviewing all the documents that were sent to ensure that all activities in every stage are catered for.
These repetitive tasks and complex processes can be automated through contract management software. It makes it easier to keep track of all the processes and manage specific repetitive tasks of the contract creation in the organization.
It acts as a negotiation tool
Most high-value contracts require a lot of negotiations. The company owner needs to show that they are equal to the task. Failure to prove that they have all the resources required to meet the needs may lead to the loss of the contract. The contract management software is designed to track every change made to the contract.
That means that none of them will take advantage of the other during negotiations. It can also store all the signed contracts, making it possible to have a higher bargaining power by showing the details of all tasks that have been completed. That means that the organization will stay apprised of the changes before making any agreement.
Streamlines signatures and approvals
All contracts reached by the organization must be signed before the deal is handled over to the respective binder. It’s vital to understand that different organizations have disparate signatures and approval processes. Some may require signatures from different parties not involved in the contract but are an essential part of making it complete.
The contract management software can match different organizations’ signatures and streamline the process by forwarding the signed tasks to the subsequent approval stage. If there is a fishy deal, the contract management software will keep the contract in the negotiation phase until an agreement is reached. Different alert systems are incorporated in the software to keep everyone involved aware of all activities that are taking place.
Provision of reports
For the organization to perform well, there is a need for it to compare with the existing data of the previous contracts that were reached. If the company does not have a proper management system, it can be challenging to find the inefficiencies that are slowly crushing the firm’s operations. The contract management software provides the organization with insights into different contracts that were reached.
Reports provided by the contract management software include the objective data. This data is essential in optimizing the processes that improve the company’s partnerships. Eventually, the company’s revenue is likely to increase as the organization will be able to deal with all non-standard clauses that subject it to poor deals.