What You Need to Know About a Legal Contract Management System

This article will cover the basics of contract lifecycles management tools, including:

  • What are contract management solutions?
  • How can they benefit your business?
  • How can they aid compliance?

Read on to learn all about these exciting tools that can keep your business running smoothly.

What Are Contract Management Solutions?

Contact management solutions are tools for creating, storing, implementing and evaluating contracts, with the ultimate goal of improving business performance and lowering the degree of risk in all business processes.

When you consider that contracts are legally binding and therefore hold a lot of power in them, correct storage and retrieval through an efficient legal contract management system is absolutely vital.

Contracts often hold pivotal information on subjects relating to a business’s key stakeholder relationships as well as on pricing, scope of work, timelines, and all terms and conditions of a business providing a service or product. A lack of a functioning legal contract management system can mean fuzzy boundaries, misinformation, and potential increased operational risk. 

How Can Contract Management Solutions Benefit Your Business?

There are many ways that a legal contract management system can benefit your business. Here are the major ones:

Improve Business Function

Having your contracts organised and easy to access means you can more easily evaluate how your business processes are performing. You can make changes to increase revenue and decrease costs, and your overall functioning becomes more efficient.

Improved Insights

When you have contract lifecycle management tools on your side, you can keep track of when contracts lapse and need to be renewed. Being aware of the lifecycle of your contracts can also allow you to extract vital data sets and meet objectives more easily.

Save Money

When you use contact management solutions, you make business spending more transparent as everything is documented. You will see exactly where your business dollar is going and you can make simple changes if necessary to stretch it further.

Reduce Errors

In the past, contracts were managed manually, which could sometimes lead to human errors in filing or updating the files. Occasionally, contracts were even lost completely! Keep your important contracts safe and easily found by using a sound legal contract management system.  

How Can a Legal Contract Management System Aid Supplier Compliance?

Suppliers are only too happy to assist their clients to maintain compliance of their mutual contracts.  Providing insurance certificates of currency, evidencing police checks, and registrations with technical authorities are all part of doing business. A good supplier has internal procedures to provide this evidence to client organisations upon request.

In fact, some suppliers make these certificates available on their website, meaning it only requires a simple drag and drop action to store certificates in their contract management system. A good legal contract management system has the capability to set the reminders to obtain these certificates each and every time they fall due. Highly rated contract management solutions also escalate any task where compliance is overdue. When the auditors come, you’ll have all the information you need at your fingertips.