We wanted contracts to take up less space so we could carry them around. And we wanted to spend less time dealing with them.
Forbes
Contract management boils down to the effective storing, recording, and management of contracts to help legal departments save time and resources. Better contract management ensures contracts are renewed on time. Streamlined contract management improves contract efficiency, helping close deals faster. Here are 4 contract management best practices.
Creating Templates for Contracts
Legal departments can create templates for contracts to speed up the drafting process and make it easier to make drafts. By building a repository of pre-approved contract terms, and crafting contract templates, non-legal departments can even execute deals without burdening the legal department.
Storing Contracts in a Centralized System
Once contracts are drafted and created, they can be stored in a centralized contract repository to ensure quick look-ups and one platform for easy access. Multiple systems create multiple headaches and bottlenecks in contract optimization strategies.
Setting Alerts for Tasks & Renewals
Organizations have several ongoing contracts and the legal department will find it beneficial to set notifications for important obligations. Some tools even provide contract auto-renewal capabilities so that companies never let a deal slip through the cracks.
Signing Off With eSignatures
Automating contract processes to include eSignatures in approved contracts helps with faster and smoother deal negotiation. Once a designated signature has been captured digitally, it can be used across a variety of contracts or contract templates. This eliminates the need for printing, signing, scanning, and sending manually.
