Managing contracts can be tedious and complex, but it doesn’t have to be. One of the best ways to make managing contracts a breeze is through the aid of contract management automation tools. These digital solutions offer several benefits for contract management, which all boils down to convenience, efficiency, and security.
In this article, we’ll explore five contract management examples that can streamline the way you handle new and signed documents.
But first, let’s take a look at some key definitions and concepts.
Table of Contents
- What Is Contract Management?
- Why Is Contract Management Important?
- Essential Elements of a Contract
- 5 Contract Management Examples
- How to Manage Contracts With Fill
What Is Contract Management?
Contract management is the process of creating, enforcing, and organizing contracts. It is essential for every business, especially since contracts provide a clear outline of agreed-upon obligations for all parties involved.
Contracts are the lifeblood of a business, but they can be complicated and difficult to manage. Fortunately, recent advancements in technology have made it possible for contracts to be managed seamlessly.
With these tools alongside their proper implementation, a business can expect bigger financial returns, reduced operational expenses, and streamlined workflows.
Why Is Contract Management Important?
The indispensable value of efficient contract management could not be denied. If done right, it will be instrumental to a company’s growth. If mismanaged, it could result in increased operational costs, legal disputes, and jeopardy of the company’s reputation.
Importantly, proper contract management would keep businesses away from the burden of legal disputes that may arise down the road. Moreover, it helps:
- save a lot of time and money
- provide the foundation for your business
- assure a stronger position in future negotiations
- mitigate business and financial risks
Essential Elements of a Contract
To be considered a legally binding agreement, a contract must meet the following elements:
- Offer: A contract always starts with a written list of the duties and responsibilities of all parties involved.
- Acceptance: Once the offer is received, the requesting party can review the contract for approval or rejection. It is considered formally “accepted” upon signing.
- Awareness: At this stage, both parties must have mutual acknowledgment of the contract’s existence and their involvement.
- Consideration: This refers to the provision of products or services. A contract is not considered legally binding unless there is an exchange of something valuable.
- Capacity: All parties involved must demonstrate that they understand all the duties and obligations written in the contract.
- Legality: Finally, contracts are subject to compliance with the applicable laws. Usually, the contract must follow all regulations in the jurisdiction where the signing took place.
5 Contract Management Examples
Check the following examples of contract management and how they work:
1. Secure Contract Repository Software
A contract repository improves the accuracy and speed of contract management by providing an easily accessible centralized database for all contracts. This can reduce workflow redundancies and manual errors that often occur when managing contracts.
Additionally, workflow automation can be integrated with the contract repository to streamline the workflow process, resulting in increased efficiency. Moreover, workflow automation provides real-time analytics and insights into workflow performance, helping businesses take proactive measures to improve efficiency.
It also helps to standardize processes such as negotiation, review, and approval, leading to increased efficiency and cost savings. This contract management software can provide organizations with a centralized place to store all contracts which can be easily accessed by approved parties.
2. End-to-End Contract Lifecycle Management Solution
When it comes to contract lifecycle management, a comprehensive end-to-end solution can have a tremendous impact on efficiency and productivity. It streamlines the entire process by allowing companies to manage their contracts more effectively.
An end-to-end contract lifecycle management solution simplifies the process of contract negotiation, drafting, and execution. By automating many of the tasks associated with contracts, it reduces the amount of time spent on manual processes.
Another advantage to be taken from this software is increased visibility. This ensures that all stakeholders are aware of any changes or developments in the process. With full visibility, teams can quickly identify potential risks or issues that need to be addressed.
3. Scalable Contract Workflow Automation
Automating your contract workflow can help reduce the time and costs associated with manual processes. This software solution can be used to ensure contract compliance, automate contract generation and review processes, and track contract performance.
As a result, it can significantly reduce contract lifecycle time and associated costs. The contract management tool also helps to improve contract visibility and contract security. It provides an easy-to-use platform that can be used by contract managers and other stakeholders to collaborate on contracts efficiently.
Finally, it eliminates most of the paperwork involved in contract management and allows for faster communication between all parties. It can also help ensure that contracts are properly reviewed and approved in a timely manner.
4. Streamlined Contract Authoring
An automated contract authoring can save you a lot of time. By automating the process of creating and managing contracts, companies can dramatically reduce their administrative burden. Rather than manually typing out contracts, automated contract authoring tools make it possible to create a contract in seconds.
These tools also allow for faster sharing and distribution of documents. This makes it easier to keep everyone involved in the process informed and up-to-date. Additionally, features such as audit trail log can help track changes and ensure everyone is on the same page.
By simplifying the contract authoring process, companies can free up time for other tasks. This time can be better spent developing strategies, maintaining customer relationships, and improving internal processes. Ultimately, this will result in improved business performance overall.
5. Electronic Signature Applications
Going green is becoming an increasingly important issue for businesses, and contract management is no exception. Using electronic signature tools to handle contracts helps reduce the amount of paper needed to process them. It also saves time, money, and resources that would have been spent on printing, filing, and storing paper documents.
Aside from being an eco-friendly choice, one of the major benefits of eSignature solutions is enhanced security. Traditional paper contracts are highly vulnerable to fraud and tampering. There are only a few ways to ensure the authenticity of handwritten signatures and any changes that are made.
On the other hand, digital contracts and signatures are more secure because they can be encrypted using advanced technology. eSignature software allows organizations to create tamper-proof contracts that are only accessible by authorized personnel. These documents can also be tracked so that any changes made can be seen and traced.
How to Manage Contracts With Fill
Although managing contracts is simple, it can be a laborious process. But when you use the proper tools, you may design a contract management system that meets your needs. Fill, a potent contract management software, enables businesses to create, sign, and organize contracts seamlessly.
Not just that, you can also manage contracts with our many features such as:
- Free contract management templates
- Legally binding and secure electronic signatures
- Easy developer API and Zapier integration
- HIPAA and GLBA compliance
- Real-time audit trails and logs
- Instant alerts and notifications
True enough, Fill emerges as one of the best contract management software in the market.
Handle Contracts Smoothly With Fill
Using Fill, you can bid goodbye to the hassle of manual processes and be able to streamline your contract lifecycle. This digital contracting tool will securely store your documents in a cloud-based contract repository.
What’s more, Fill will help you achieve a smoother workflow, reduce costs with paperless transactions, and secure deals while ensuring compliance.
Reap the benefits of a seamless contract management solution. Sign up for free today.