A contract management system is a kind of software that digitizes and stores all contracts in a central deposit system. Software designed as a contract management system makes it easier for key people, such as legal and compliance departments in any organization, to search for documents needed for prospective litigation cases. This system allows you to search and review contracts, and eliminates the need to sort through large volumes of paperwork.
Here’s an overview of what a contract management system is and the benefits of legal contract management software.
What is a Contract Management System?
A contract management system allows companies to create new contracts and track the status of existing contracts to make sure that all legal clients within the organization are delivered the services they have contracted and paid for.
Elements of contract management within a law organization include contract creation, negotiation, adherence, service level agreements, and documentation.
Some of the most popular types of contracts that legal professionals use are:
- Deeds of Trust
- Service Agreements
- Rental and Lease Agreements
- Commercial Agreements
- Litigation Documents
Without a streamlined and secure contract management system in place, it’s difficult for a legal entity to properly stay on track and ensure its legal obligations are correctly completed. A well-managed system increases efficiency and accuracy at any stage of litigation, and the everyday management of a company.
Contract Management Software
Legal contract management software helps law firms manage contractual obligations, centralize committals, and employ contract management.
Software has transformed legal departments over the last few years. It has become possible to utilize software that integrates seamlessly with systems already in place in a given company. It also helps law firms close more deals and retain more clients.
That being said, because of the last few decades of growth in the technological sector, there are a plethora of software options, making it more difficult to choose. In turn, choosing the best software option for your company depends on the following factors:
- Key features of the software
- Compliance measures
- Pricing plans
- Popular integrations
The best contract management software unites all professional departments and tracks changes along the timeline from the inception of the client to the final signing and execution.
The lifecycle of a contract management system includes the provision of detailed analytics and reporting, ongoing management, and workflow automation features.
When choosing the right contract management software, it’s essential to understand the most important functions it includes. The software should focus on the following:
- Document management
- Key provisions which track an organized workflow
- Reportable information contained within the contracts
- An established system that finds a contract based on specific criteria
The most important thing is to understand the key features of each contract management system and work through any criteria you have.
Once you have chosen the right legal contract management software for your legal firm or company, you want to make sure that you correctly train your team(s) on the software.
Whatever platform or software you choose to manage your contracts, make sure to start with an analysis of the team´s requirements. Additionally, analyze it for key features, integrations, and user experience.
With a contract management system, key business processes can be automated. Digital and AI-assisted data management increases efficiency and accuracy, which positively impacts the bottom line of a company. Automating key systems may initially seem expensive, but the expense is mitigated by time saved in resources. Increases in speed and accuracy of data collation improve operational efficiency across all departments. Contract management systems make it easier for legal teams to collaborate and delegate work effectively. It also means more resources can be allocated to the “bigger picture” and overall company vision while smaller tasks can be organized more efficiently.
The benefits of using a contract management system within your legal firm or company are numerous. With changes in technology, automation has become an important piece of how companies operate.
Outsourcing Contract Management
When you outsource your contract lifecycle management, you open up opportunities to optimize costs, reduce risks, and create new opportunities for revenue. Companies can leverage business-grade technology, data-driven insights, and global teams with expertise.
If you are a law firm or legal department, UnitedLex can help with your Contract Lifecycle Management Solutions. Find out more about UnitedLex’s Litigation Support Services and Investigation Solutions.
UnitedLex is a technology and legal services company committed to delivering full-scale Digital Legal Transformation. The world’s most forward-thinking law departments rely on the company’s expertise in more than 25 global jurisdictions. Founded in 2006, the team includes 3,000 legal, engineering, and technology professionals with major operations in 18 countries. For more information, contact us.