It is not uncommon for businesses to focus all their efforts on an initial contract, and then feel that contracting work is done, only to realize there are many activities that carry forward, such as a renewal or amendment. Therefore contract management can be as important, if not more important, than that initial contract, such as a Master Agreement. Effective management of your negotiations, contracts and the contracting process can be the difference between a fruitful business relationship and a damaged one. It can ensure the seamless renewal of a contract, or precipitate a contract termination or worse still, costly and time-consuming litigation. Yes, ‘breach of contract’ is a real thing and subsequent legal claim and litigation can be a huge distraction or even tank a company.
Contract management is a multi-faceted affair and processes must be in place to ensure that time is not wasted, tasks are not repeated, and the correct personnel are given the appropriate responsibilities. It’s a team effort and because of this, seamless communication and collaboration are key components of a successful engagement. It requires transparency and accountability. In order to assist with contract management and its many moving pieces, businesses are electing to use contract lifecycle management software that can systematize and automate many of these triggers and steps.
Leveraging software-based workflow automation to keep things in a straight line means firms can operate at maximum efficiency and the highest level of accuracy. This in turn spells savings for all parties involved in the agreement. Depending on the complexity of the contract, negotiation of terms and conditions will be required, and the proper CLM software can eliminate much of the back and forth that plagues deal-making (i.e., the proverbial slowdowns and even roadblocks). Instead of meetings, phone calls, and emails back and forth, contract negotiations can now be done virtually, with real time changes and updates. No more misunderstandings or missed opportunities, with a clear ‘record of truth’. That is, the proper CLM software should drive process, but all keep record of every action and activity to provide a deep audit trial and make compliance a snap.
ContractRoom offers businesses a digital platform that handles every aspect of contract management throughout the contract lifecycle. From beginning to end, ContractRoom allows its users to create, negotiate, edit, and execute contracts at any level of complexity. ContractRoom keeps everything organized and because it’s cloud based, contract management can be streamlined and automated – that is, it will do the ‘contract servicing’ for you. If not ContractRoom, you should demand this capability from your current system or future provider.
To significantly reduce the cost, timing, and frustration of contract management, large corporations are turning to ContractRoom for the answer. It’s the smartest contract lifecycle management platform for the enterprise market, optimizing the way we agree. ContractRoom software is uniquely powerful in its ability to transform the user experience (UX) end-to-end and by leveraging AI machine learning to make the “process simple and decisions smart”. This complete CLM approach means every aspect of negotiations and contracting is faster, but with better control.
This is the 4th in a series of 5 blogs on core ‘CLM Modules’:
- contract drafting (blog 1)
- contract assembly (blog 2)
- contract operations (blog 3)
- contract management (blog 4)
- contract compliance (blog 5)