It’s important to remember that contracts are documents that remain frozen in time and they represent the obligations that will be delivered at a future point in time. This is the reason why contracts need to be managed efficiently and accurately throughout their entire lifecycle. To make sure that the contract is fulfilling its intended purpose, from the cradle to its grave, it is necessary to ensure that they are structured properly.
Contract lifecycle management software uses contract management tools to do exactly that. By using these tools, a company can make sure that the contract is reviewed correctly, its provisions are enforced accordingly and the intent of the contract is realized, along with the recognition of its weaknesses, which can be corrected after being identified.Contract management tools make sure that the contract fulfills its intended purpose in day to day business activities and shortens the gap between practice and theory.
Here are 4 basic features that contract management tools must possess, in order to accomplish their intended purposes.
1 Automation of the Negotiation Procedure
Negotiation is probably one of the most important parts of the contract management process and contract management tools ensure a streamlined process of sending and receiving contract information through a secure portal. This can considerably speed up the contract processing speed and allow key stakeholders to review the contract and track the highlighted features and prerequisites of the contract that can enable them to identify any errors in it and to make changes at a preliminary stage.
2. Automated Approval
Automated contract management tools allow the user to take significant advantage of the automated approval process. This is one of the features that must be present in contract management tools that you choose to purchase. Automated approval means that appropriate documents are sent to the department or person that they are associated with. This feature also enables the legal staff and clients communicate without any hindrance and to speed up the contract approval process by maintaining a parallel contract workflow.
3. Centralization of Document Storage
This is one of the features that must be present in contract management tools. It enables a company to maintain a centralized repository for all the documents that are related to the contracts. This single, primary and secure location can help any authorized user to access the files by their names, specific keywords, or any other identifying data, by utilization of a free word search. By using this characteristic, all contracts can be reviewed and accessed through the network. This necessary feature will allow the user to customize security preferences or settings based on the contract.
4. Contract Renewal and Milestone Detection
Contract management tools must have the ability to notify the user when the contract is due for re-approval or renewal. For this process,contract management tools can use the existing or current contract information as an initial point to predict when the contract will be due for renewal. A contract management software should also be able to identify any areas or add-ons that can be improved to increase contract value. Moreover,contract management tools should also notify the user by automated alerts when the contract is going to expire. Any additional notifications can also identify any particular milestone or renewal information regarding the contract.
Contract management tools by CallidusCloud have all the necessary features that are the prerequisites of a good contract lifecycle management software. If you want to experience the next generation CLM software, get the CLM free trial now!