If you have some concerns about your business’ contracting practices, you are not alone. Huron Consulting Group, conducted a survey with legal technology professionals, and more than half (57%) of the respondents said they are concerned about their company’s contract management procedures.
When a company has only a few dozen contracts, managing them may be easier (although may is the operative word). But the survey showed that the majority of companies have thousands of contracts (65% have more than 1,000 contracts in effect). If the contracting process isn’t efficient, companies can lose millions of dollars simply due to inefficiency.
Other key survey results include:
- Only 25% store legal documents in a single repository. One third (36%) use a combination of electronic and hard copy storage. And 1 in 10 do not know where they store legal documents.
- Almost half (42%) of the respondents primarily use in-house legal to draft contracts, and 22% use a contract drafting software tool.
- A majority (58%) said they review standard contract terms and conditions at least once a year, 17% said every two years, and 13% said only whenever a new client is signed.
- Only one third (34%) are using a contract management tool. Almost one fifth (17%) said manage their contracts ad hoc.
With these results, it's no wonder legal professionals are concerned about their contracting processes. We know from our own experiences and conversations with our customers that inefficient contracting and business processes lead to noncompliance of contract terms and cause businesses to lose money—these two things would keep any legal professional awake at night.
The good news is that despite the volume of contracts legal departments handle, with the right contract management software, contract management can be painless. We call it Happy Contracting!
ContractRoom streamlines, and some cases fully automates, the contracting process for buyers and sellers. Every feature we have integrated has the purpose of making contracting painless.
Read the full survey results here: Huron Legal Contract Management Survey.