Technology is an integral part of our business in this fast-paced world. This is true no matter the size of your organization, especially in the Bay Area. Managing contracts efficiently and effectively can be a burdensome task, but a critical one. Contracts form the basis for almost every deal we do. They are inherently important. Nowadays, there is software for virtually almost any application, including contract management. Considering a system to manage your Bay Area contracts can help to streamline your business.
What is a Contract Management System?
Contract management can mean different things to different businesses. In the general sense, contract management is the process a company uses to create, negotiate, execute, and track contracts. A contract management system is an automated system that helps streamline various components of contract management. There are many Bay Area and national companies that offer various software to manage contracts. At the heart of these systems is the ability to use it as a repository for legacy and new contracts, increase the operational process of contract drafting, and automate as much of the process as possible.
Typical Contract Management Process
Contracts have a life cycle, and a contract management system can help automate and document certain portions of this process. Typically, the process may include some of these steps:
- Processing the initial contract request: A system can allow a salesperson to populate particular fields and request a contract.
- Generating a contract: Once the initial request is made, the system can generate a contract from a template or alert key personnel to generate the contract and customize as needed.
- Negotiation: If the contract will require negotiation and redlining, the system can track changes, identify discrepancies, and provide a keyword or clause repository.
- Approval process: Many contract management systems allow the approval process to be tracked and to send alerts and reminders to the various stakeholders.
- Execution: The system can often be combined with an e-signature component that makes execution easier.
- Continued access: One of the pertinent functions of a system is to be able to search for contracts, link various contracts, and use it as a repository to review, amend, and evaluate contracts.
- Reporting and auditing: If your business requires audits and compliance checks, the contract management system can make this much easier and more efficient.
- Renewal: The system can automate the renewal process, improving its efficiency and potential for increased revenue.
Benefits of Contract Management Automation
There is a cost associated with purchasing and implementing a contract management system. Your company will need to determine the cost-benefit analysis as it relates to your business. Introducing the contract management system can have some of these benefits:
- More control over the contracting process
- Improved contract cycle negotiation time
- Decreased risk
- Increase in security and compliance
- Possible higher revenue
- Quicker and efficient renewal process
- Lower administration costs
Contact a Bay Area Attorney to Learn About Contract Cycles
Contracts form the basis of most business. Understanding the important components of contracts, the pitfalls, and risks can make or break a deal. At the Structure Law Group, we can provide counsel and advice regarding your business contracts. Contact our firm online or call us today at 408-441-7500.