Best Contract Management Software

Contract Management Software Guide

Contract Management software is designed to build, sign, distribute, manage, store, and track legal documents. Through the use of on-premise and cloud solutions, teams are able to organize their business contracts in a single location. This helps to reduce the length of time employees need to spend sending legal documentation to and from other partners during their negotiations.

Contract management software provides users with powerful tools to help them keep track of their contractual obligations. It allows users to store all documents in one centralized repository and access them from any location. Contract data can be accessed across multiple devices including desktop computers, tablets, and smartphones for more flexibility. The software also includes built-in security features such as encryption, two-factor authentication, password protection, and audit trails to protect sensitive data.

This type of software offers comprehensive tools for managing a variety of contracts such as vendor agreements, licensing contracts, purchasing agreements, non-disclosure agreements (NDAs), employment contracts and more. Users can customize their workflow according to their specific needs by setting up automated tasks such as contract renewal reminders or expiration alerts. They are also able to generate detailed reports based on different criteria like contract length or payment terms in order to get an accurate overview of their current contractual situation.

The benefits of using contract management software include increased efficiency, improved accuracy when drafting contracts due to standard templates available within the system and automated notifications when changes need to be made or deadlines are approaching. Additionally it reduces costs associated with manual contract management processes such as the time spent searching for physical paperwork and sending printed forms through the mail for signature collection which become obsolete with digital signatures integrated into the system itself. Lastly it boosts collaboration between colleagues by enabling online discussions about related topics within the same platform thus promoting better communication across different departments in an organization.

Many larger companies deal with a high volume of contracts due to leases, sales, vendor relations and intellectual property negotiations. For these companies, the use of contract management software will help to save money on printed materials, postage and negotiation time. The effort and time to make deals will decrease and companies will find their dealings to be more efficient.

There are a variety of businesses which find using contract management software to be a good investment. Some of the top targeted businesses for this software includes paralegals, attorneys, sales operations professionals and procurement professionals.

Free Contract Management Trials Offer A Test Run With Each Product

Each contract management software provider offers different services and features. To start a search for software, sign up for free demos from some of the top providers online. They will allow businesses to have a free trial of the software to take for a test run. When you use more than one free demo, they may be compared in order to find the best software solution for the needs of a specific business.

Common Features In CLM Software

It has been reported that many companies fail to locate up to 10 percent of their client contracts. Many of these lost contracts get misplaced or accidentally deleted off of a hard drive. Misplaced and lost legal contracts can be more than an inconvenience for businesses. Not having the proper documentation when needed can affect a company's sales, compliance, and future negotiations. When original documents are not able to be located, the agreed-upon terms and conditions for both parties may fail to be followed properly.

The main benefit of contract management solutions is the ability to have one central database for all business documents and contracts. There are also various extra benefits and features which the solutions offer as well. Contract management software offers the following features:

• Contract Management: This feature provides a single repository for all contracts, allowing users to easily search and store contract information with an intuitive user interface. It makes creating, tracking, and managing contracts easy.
• Automated Alerts: Contract management software can provide automated alerts when contract terms or deadlines are approaching or have passed. This can help ensure that contracts are always kept up to date and timely notifications are sent out should any changes happen.
• Advanced Reporting: Contract management software can provide advanced reporting capabilities such as custom reports, graphs, and analytics, giving users the ability to track their performance regarding their contractual obligations in real-time.
• Auditing & Compliance Tracking: This feature helps organizations stay compliant by tracking key compliance measures including required documents and identifying potential risks associated with a particular contract. It also allows organizations to monitor their agreements for any necessary actions or audits needed to remain in adherence with applicable laws and regulations.
• Integrations & APIs: Contract management software is designed with integrations in mind so that it is able to seamlessly connect with other enterprise systems such as ERP, CRM, HRIS, etc., allowing the system to capture important data from these systems automatically for more efficient workflows. Additionally, some products may offer APIs which allow developers to further extend the functionality of the system via custom code integration.
• Collaboration Tools: This feature allows users to collaborate in real-time with colleagues and external parties by providing an easy-to-use chat interface, document sharing, and task management. This helps ensure that everyone involved in a particular contract is kept up to date on any changes or updates as they happen.
• Automated Workflows: Contract management software can provide automated workflows to simplify and streamline the contract process. This allows users to create complex workflows for different types of contracts, ensuring that the contracts are accurately completed and reviewed in a timely manner.
• Document Library: This feature allows users to store and organize contracts in a secure library, making it easy to find what you need when you need it. This can help keep track of all the contracts associated with a particular project or organization quickly and easily.
• Signature Capture: Contract management software can provide an electronic signature capture feature, allowing users to quickly sign contracts without the need for any physical signatures. This provides an efficient and secure way to obtain legally binding agreements without any delays.

Use Of Contract Management Software In The Industry

The main benefit of using contract management software is to reduce the contract process from start to finish. Effectively reducing the process will save teams time and money. Many industries find the software useful at all points in a contract lifecycle including the signing, the drafting, editing and analysis of the process afterward. Below are some of the more common industries which have found great success with a reliable contract management software system in place.

Intellectual Property

Intellectual property contracts are complex. The use of contract management software will help make the process of updating contracts and building new ones. When issues are found in the contracts, features such as the ability to copy and paste, add graphs and search diagrams makes the process easier. Each change will also be time-stamped with the dates each document was generated or signed. This can be a huge help when legal disputes arise.

B2B Sales

Contract agreements have always been the slowest part of any deal-making arrangement. The use of contract management software can help speed up the process in a safe, encrypted manner. The deals made will be done securely through the software instead of through third-party email applications which may be compromised. The reporting tools included in each software will also help identify areas of the process which are slowing it down. The tools can help report the statistics of macro sales.

Construction

Construction companies deal with a lot of complex processes to successfully complete a project. Aside from the actual building of a project, there are typically numerous multi-party contracts to deal with. This can get complicated quickly. For a contract to be legal, all parties have to agree to all terms and conditions. Contract management software allows huge, complex contracts to get done with ease. Construction contracts also come with deadlines and fees which require accurate updating and tracking.

Property Management And Real Estate

Real estate professionals often deal with long and complicated contracts on a daily basis. This can be overwhelming for even the most seasoned professionals. Contracts printed on paper can add up to stacks and stacks of paperwork. Because of this, it can be difficult to be efficient and editing documents can be time-consuming. Contract management software can make organizing countless contracts simple. An added benefit of storing the contracts in the cloud is they will be safe from tampering, fire or other disasters.

How To Compare Different Contract Management Software Suites

While searching for contract management software to implement, it is important to consider the needs of your business. Some software systems offer both internal and external partners. If security is of the utmost importance, options can be changed to allow only certain documents to be accessed by external parties.

Sending private information or contracts through email can be risky, especially if it is a third-party email provider. They may also limit the number of users for each account. Companies which produce countless contracts that are similar can find a software which offers the ability to save templates for easy contract drafting. These base templates can give you notifications when pertinent information is missing.

While searching, it is also crucial to keep the industry's regulations concerning contract drafting in mind. Most contract software makers design their products with specific federal or international regulations at heart. However, it is best to check before purchasing contract software.

Here are some additional tips to identify the right contract management software:

1. Define the purpose of the contract management software: Determine what types of contracts your organization will use it for, such as sales, service, or other agreements.
2. Evaluate existing tools and processes: Consider what tools and processes you currently use to manage contracts and how they might be improved upon. This can include whether manual processes are still used or if there is an in-house system that could be enhanced with a more comprehensive software solution.
3. Establish your budget: Set a budget for the software that is suitable for both its primary purpose(s) and future growth needs.
4. Research potential vendors: Research potential vendors who offer contract management software that meets your criteria and fits within your budgetary constraints. Ask questions to gain further insight into each offering, such as customer experience, product features/functionality, pricing tiers & scalability options, etc.
5. Check references & reviews: Be sure to check references from current customers of any vendor you consider working with and read user reviews. Use the tools on this page to compare contract management and CLM software by user reviews, features, pricing, integrations, operating system, country, and more.
6. Take a test drive: Schedule demonstrations with multiple vendors so you can get acquainted with their platform’s features, functionality & user interface (UI). Additionally, ask them to provide demos of any customizations that can be made to tailor the system’s usability for your specific organization’s needs (if applicable). Doing so will enable you to make an informed decision about which platform best suits the needs of your organization before committing any resources towards its implementation or purchase price tag.

Benefits Of Contract Management Software

• Increased Efficiency: With a CLM software implemented, team members have the ability to search for vendor contracts quickly without the need for multiple screens being opened. All contacts can be organized and stored in one, convenient place on premises or in the cloud. Contacts can easily be located by search terms such as name, phone number or other keywords.
• Reduced Risk: The software can lessen the risk of misplacing contracts, missing deadlines or failing to meet compliance standards. The automation and reporting features allow team members to evaluate their contracts for errors before finalizing. Cloud solutions offer dedicated access, encryption and permission options that may be used to give access to authorized team members only.
• Save Time And Money: In any industry, time is money. Using contract management software helps any team to effectively increase their efficiency and save time and money. The boost in productivity and efficiency will make the investment and implementation of software worth the purchase.
• Improved Security: Contract management software can provide a secure repository to store confidential and sensitive documents, such as contracts and other legal documents. The software helps to keep these documents secure by using encryption technology, ensuring that only authorized personnel have access to the documents.
• Streamlined Processes: By using contract management software, companies are able to streamline their processes related to contract creation and negotiation. This includes utilizing automated tools for generating contracts, managing contract versions, tracking changes and deadlines, and more.
• Enhanced Collaboration: Contract management software makes it easier for multiple stakeholders to collaborate on projects by allowing them to share documents securely and in real-time. This helps improve communication between all parties involved in the contract process.
• Increased Visibility: With the help of dashboards and reporting features available in most contract management solutions, companies are able to gain better visibility into their current contracts and understand how they are performing against key metrics. This helps them make informed decisions about future negotiations or renewals.

Who Uses Contract Management Software?

• Procurement Personnel: Individuals responsible for purchasing goods and services from vendors on behalf of an organization. They use contract management software to manage purchase orders, track contract agreements, and ensure compliance with the terms and conditions of each agreement.
• Legal Professionals: Lawyers and other legal professionals who use contract management software to draft and review contracts, negotiate terms, advise clients on legal matters related to contracts, and monitor any changes that may affect the agreement.
• Contract Administrators: Managers who oversee the entire lifecycle of a contract, including the initiation process, negotiation process, performance stages, extension periods and final closure. They use contract management software to track deadlines, milestones and other contractual commitments.
• Sales Representatives: Professionals who handle customer relations by negotiating terms with potential customers or partners. They use contract management software as part of their sales process to generate contracts quickly and accurately so they can close deals quicker.
• IT Professionals: Technology experts who are responsible for maintaining IT systems in an organization. They use contract management software to ensure proper security protocols are being used at all times when accessing sensitive data or information related to a contract agreement.
• Financial Managers: Executives in charge of managing financial transactions within organizations. They use contract management software to keep track of invoices associated with a particular agreement as well as payment status updates between parties involved in the agreement.
• Audit Personnel: Internal auditors in charge of ensuring compliance with laws and regulations for organizations. They use contract management software to perform analysis and audits on contracts, review terms and conditions, identify potential risks or areas of improvement, and recommend necessary changes to improve the agreement.

How Much Does Contract Management Software Cost?

The cost of contract management software can vary widely, depending on the features and capabilities offered. At the low end, basic contract management software that provides basic document storage and sharing functions may cost as little as a few hundred dollars per year for a single user license. On the other hand, more comprehensive solutions with sophisticated workflow automation and analytics capabilities can run several thousand dollars per user per year. Other factors that could drive up costs include enterprise-level packages, add-on modules such as e-signature tools, and custom integrations or deployments. In addition to purchase costs, organizations should factor in ongoing maintenance and support fees when budgeting for a contract management system. As with any technology purchase decision, it’s important to consider total cost of ownership in order to ensure value is being received from the investment over time.

What Does Contract Management Software Integrate With?

Contract management software can integrate with various types of software such as accounting, customer relationship management (CRM), enterprise resource planning (ERP), legal research, document management, and project management software. Accounting software helps organizations to track expenses and ensure payments are made on time, while CRM systems help track customer interactions and store important customer data. ERP provides an integrated view of core business processes from order entry to inventory management and financials. Legal research software streamlines the process of researching laws, rules, regulations and cases that are applicable to contracts. Document automation software automates the preparation of documents for signature by leveraging artificial intelligence (AI) technology. Project management software enables teams to collaborate efficiently on projects by providing easy access to documents stored in the contract lifecycle system and tracking tasks related to contracts. All these types of software can integrate effectively with contract management applications so that businesses can automate contract processes more efficiently leading to improved compliance and accelerated time-to-value.

Things To Consider When Purchasing Contract Management Software

The perfect software for a specific organization will be dependent on a variety of factors including the size and needs of their contract development process. Take into consideration the following types of buyers:

• Small To Midsize Businesses - These businesses usually have up to 100 employees and will focus on specific areas of operation. These companies may be best suited with a software that specializes in contract creation and storage. Smaller companies typically work on thin profit margins. The ability to bring in recurrent cash flow will be dependent on renewing contracts with ease. Contract storage can always be an issue, especially with old storage systems like file cabinets. Using CLM software with basic features will best meet the needs of this size of business.
• Larger Enterprises - Bigger corporations usually operate in multiple areas and have employees across different locations. For these types of businesses, organization and coordination are crucial. Large enterprises need to consider software that offers the ability to choose the modules they need. For example, organizations which draft contracts needing collaboration from multiple internal and external parties may need modules that help to automate much of the approval process. Features such as milestone tracking, automated alerts and other CRM solutions may be added.

Picking The Right Contract Management Software

For those that need help choosing the right software, use the product selection tool to find more reviews and information about specific software choices including sales, e-signature tools and contract management options.

Contract Management Software Trends

1. Automated Approvals: Contract management software is becoming increasingly automated, allowing for streamlined document reviews and approvals. Automated approvals are not only faster and more efficient, but they also allow stakeholders to have visibility into each step of the contract process.
2. Increased Cloud Storage: New contract management software solutions are offering cloud-based storage capabilities to securely store contracts and all associated data in a single location. This enables better organization, improved access control and enhanced security of confidential information.
3. Seamless Integration: Contract management software is now designed with built-in integrations with other business systems such as accounting, payroll, HR and CRM, so that the data can be shared across departments easily and efficiently.
4. Powerful Analytics: Leading contract management solutions are now equipped with analytics capabilities that allow users to track spend patterns, analyze ROI from investments or review contracts from various perspectives such as duration or cost analysis to gain insights into how their businesses run.
5. Intuitive User Interface (UI): To simplify the contract negotiation process for users, modern software solutions feature an intuitive user interface (UI) design that enables quick implementation times with minimal training requirements for end users who need to use it often or infrequently.
6. Document Workflows: To streamline the entire contracting process from request to execution and renewal without manual intervention, contract management solutions offer automated document workflows based on different sets of criteria while still maintaining compliance with corporate policies.
7. Automated Reminders: Contract management software also features automated reminder systems that can be set up to notify users when a contract is due for renewal or if certain tasks need attention. This helps ensure that all stakeholders are kept informed and no deadlines are missed.
8. Flexible Usage: Contract management software can be used in multiple ways, such as customer contracts, employee contracts, supplier and vendor agreements or project-specific contracts. This versatility makes it easy for users to find the best solution for their needs without investing in separate systems for each type of contract.