The process of managing contracts has begun to occupy the center stage, thanks to transformation in technologies. Propelled by the advent of the pandemic, industry experts consider the contract management software as one of the essential tools for business operations. Contracts are legal documents that dictate the terms of every business relationship. It has become imperative to incorporate an agile application to monitor contracts. Let’s take a look at what contract management entails.
What is Contract Management?
Contract management is the process of creating, executing, storing, and monitoring contracts throughout their lifecycle. The practice has been prevalent for ages, where the parties involved forged contracts for legal purposes. Although the process and tools evolved significantly over the years, the intent of contract management remains the same. Today, contract management is a crucial process that helps stakeholders make financial and business decisions. Managers leverage advanced contract management tools to expedite the process and improve efficiency. One such tool with millions of users worldwide is the contract management software.
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Contract Management Software
Contract management software is an application that allows users to streamline their contractual processes. Contract managers integrate the application with the existing systems to maintain process fluidity. The inbuilt features of the software enable the team to stay on track and manage contracts efficiently. The software has an easy-to-use interface that makes it simpler for the contract team to accelerate their operations.
Pros of Using the Service Contract Management Software for Business
Streamlining the Documents
The loss incurred by an organization due to missing documents and information has been phenomenal over the years. When it comes to contracts, it is essential to store them securely. Contracts contain sensitive data, making them high-priority. The application is considered the best contract management software for small businesses. The application enables the team to streamline the documents and manage the contracts effectively. From segregation to categorization, the software makes all contractual activities seamless.
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Drafting a Contract
Seasoned contract professionals draft the documents meticulously. The contract must encompass information such as:
- The purpose of the contract
- The contractual terms and conditions
- The involved parties
- The responsibilities of the involved parties
- The duration of the contract
- The contractual clauses
- Details regarding risk and compliance
The contractual team collaborates with the other in-house teams to create legally sound contracts. The software comes in handy while creating contracts because of the numerous features. It also allows the users to collaborate in real-time, saving time and costs.
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The most important phase during the contractual process is negotiation. Conventionally, the negotiation process was done in person or using varied mediums like email or postal services. By leveraging the software, the team can share the documents instantly. The involved parties render their feedback and comments in real-time. It eliminates the risk of sharing the documents through unreliable sources. In case the vendors want to negotiate the terms, they can easily redline the document and tag the relevant people for a quick response.
eSigning of Documents
The contract documents become legal once the involved parties mutually agree and sign them. Procuring the signature of every stakeholder was laborious. The contract management software facilitates the users to execute the document swiftly with the help of the eSign feature. Once all the parties eSign the documents, the contract is set in motion.
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The best feature of the software is its encrypted security levels. The contract manager can assign levels of security based on the team’s involvement. A few notable security features include:
- Password protection for every base
- Monitor the activities and footprints of the team
- Manage and control the accessibility features
- Hide paragraphs and passages in the contract for protection
- Store high-priority contracts in a secured base, and more.
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Contracts are not one-day affairs. Their relevance and importance persist all through its lifecycle. Managing contracts throughout the service duration render an in-depth insight into the performance of the contracts. The software is well-equipped to track the performance of every contract during its validity period. Contract managers can review the progress of contracts regularly and report it to the stakeholders. It helps in reducing the risks involved and enhances team productivity. The contract monitoring team can ensure compliance by tracking the vendor’s contributions versus the contractual terms. It simplifies and improves the visibility of contracts, irrespective of their enormity.
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The contract management software is an end-to-end application that has transformed contractual activities for the better. Leveraging the advanced tools enable the team to work cohesively and contribute tremendously.