Contracts represent the risks and obligations your organisation is bound by, but they also contain hidden opportunities which can be leveraged to your advantage if the data stored within them is well understood. One of the main aims of a Contract Management System is to centralise all contracts and enrich them with a certain level of standardised data to ensure you can find the right contracts when needed, in a timely manner, in a single place. By far the most important benefit of effective Contract Management is to capture and store key data attributes about contracts (e.g. obligations, renewal dates). This provides a variety of benefits including risk, obligation and opportunity management, efficient categorisation and storage, effective reporting and fast contract generation.
Contract creation typically involves a high volume of work, with each negotiator working on multiple contracts at once. Supplying lawyers and contract negotiators with the necessary tools to manage and track their work effectively can increase productivity and highlight where issues and blockers are occurring.
Negotiating contracts often involves organisation/client preferences and specific practices. With staff turnover, this tacit knowledge can be lost, and it can be expensive to train a replacement. Contract Management Systems can enable standards to be captured using template and clause libraries as well as providing consistent first drafts created automatically using document generation tools.
Having a single repository to create, store, report and manage contracts is a vital component of a successful contracting function within a legal team.
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