LegalTech is transforming the legal industry and changes many aspects of the daily life and work routine of lawyers. It is a billion-dollar business and forecasted to breach the trillion-dollar mark next year. LegalTech is booming and there is no end in sight: a recent survey by the European Company Lawyer Association (ECLA) discovered that up to 80% of the lawyers questioned see their daily work will involve legal technology in the next five years.
We have already given you an overview on the different kind of Legaltech solutions, but it’s time to dive deeper into the different categories. We begin our new series with a look at contract management and the exchange and negotiation of contracts between the different parties. Depending on the complexity of a legal agreement, the number of different versions of a document along the entire negotiation lifecycle can be astonishing and a good contract management software can be integrated into other applications like project management, cost calculations and administration, always evidencing and highlighting changes in an auditable and legally robust way. How does Contract Management Software exactly work though?
What is Contract Management Software and how does it work?
Contract Management Software is a type of tool that can be used to provide comprehensive contract management solutions to sales, financial, legal and contract administration teams. Thanks to this type of software, companies are able to automate the contract approval, creation and the negotiation process. On top of that, this is a great way for any business to manage contracts and contract data. It leads to faster reporting, ease of use and less time spent on finding and handling any contract. With help from Contract Management Software, you will find it easier to increase the efficiency of your business, all while boosting contract velocity and mitigating risks naturally.
Why should you use Contract Management Software?
One of the main advantages brought by Contract Management Software is the fact that you don’t have to rely on manual paper contract management anymore. It’s a very good tool to help you track costly activities. It can also provide reports, ensure the proper compliance and you can also automate contract management and handling tasks too. Being able to keep all the employee and client contracts in a single place helps quite a lot too.
In addition, most Contract Management Software solutions are very customizable. Not only can you store documents anywhere you want, these tools canalso help you track changes to contracts, use filters to find the right documents and you can also have specialized alerts in case any document was changed.
What type of contract-related activities are supported?
Most Contract Management Software will bring support for a variety of different contract activities. These include employment, leasing, facilities management, sales, licensing, intellectual property, non-disclosure, subcontracting and outsourcing, procurement and many others. The main focus for the Contract Management Software is to align the pre and post execution phase for any contract.
During the pre-execution process, it will manage the intake of document drafting and contract requests, all while offering a comprehensive template library. The Contract Management Software can also execute contracts while focusing on signatures, redlining and many others. It will also provide workflow automation for contract establishment and execution.
The post-execution process will be focused on centralizing the contacts, contracts and documents in a single repository. You can also manage everything in key terms and dates, all while analyzing the contacts and contracts or generating reports. Moreover, the Contract Management Software is fully compliant with the EU GDPR and it also has contract risk management features embedded in it.
Conclusion
Contract Management Software is very helpful if you want to easily manage all your paperwork, contracts and agreements. It helps automate a lot of contract-related tasks, saving both time and money for any business. You can also have access to a variety of templates, while also being able to access a vast range of different reports. With its help, you will find it easier to generate more leads and customers naturally, and the return on investment can be nothing short of staggering. It’s the best way to finally have a fully digital solution that helps manage risks, assess any issues and ensure that everything is working at a very professional level. The Contract Management Software is one of the most important apps you can use within your business, and it works flawlessly with project management software and contractor management tools, among many others!