Vijith Menon
by
Vijith Menon

Contract management is a process of creating contracts with third parties or partners to complete tasks within a stipulated time. Contract managers undertake it as a part of their responsibility for managing various projects under their supervision. They are responsible for creating proposals, agreements, and other documents. Effective management of contracts improves business relationships and increases revenue. In addition, contracts play a crucial role in maximizing performance and minimizing potential risks.

Traditionally, contract management is conducted manually using paper, email, and unorganized computer files. However, there could be a more effective way to manage agreements. Organizations that rely on manual management should invest in an automation platform to improve their contract lifecycle management (CLM) process.


Contract management software reduces the average time to get a contract approved by 82%. – Aberdeen and Forrester


Electronic signatures can be a valuable addition for contract managers looking to simplify contract management. It can be used for critical steps during contract management for crucial stakeholders to review documents and provide their approval. In addition, with the digitization of workflows becoming a priority in companies, contract managers can eliminate manual tasks and use eSignature solutions to minimize risks and save time and money.

The Contract Management Process

Contract managers must follow due process to ensure contracts are appropriately reviewed and nothing important is missed. Here are the steps of each stage.

  • Creation – The contract is created, reviewed, and managed by the contract manager by identifying the correct documents to support the contract’s purpose.

  • Collaboration – The contract needs to be reviewed by all stakeholders after the first draft. Any changes to the document should be noted and shared in real-time to reduce discrepancies. All parties must review the contract and meet at a middle ground to ensure projects can take off seamlessly.

  • Signing – All contract stakeholders can sign the contract after doing their due diligence. Contract managers can use digital signature solutions such as DrySign to gain swift approvals and eliminate bottlenecks. E-signatures can help stakeholders shorten the signature process TAT from 5-6 business days to mere minutes.

  • Tracking – Contracts must be tracked closely to ensure all stakeholders adhere to contract terms and conditions. Contract revisions are expected, with provisions to be available for their amendments. The right software helps track any document changes and accelerates negotiations.

  • Renewal Successful execution of contracts can lead to their renewal by all parties. Manual contracts can culminate in missed opportunities and lost revenue. Automating the contract management process can bode well for all parties involved.


Up to 40% of a contract’s value can be lost without close contract governance – KPMG


Also Read: Change The Way You Manage Your Contracts - Go Digital With Drysign!

Challenges faced by Contract Managers

Contract managers in large companies are in charge of handling various contracts simultaneously. But multiple challenges, such as internal processes or legacy software, can deter managers from achieving their targets. Here are some of the issues that can present a challenge:

  • Lack of Collaboration – Contract managers require collaboration with all stakeholders involved in the contract. The lack of software that allows businesses to collaborate on agreements can result in unmet concerns or needs. A collaborative platform enables the workflow to be streamlined and contracts to be executed on time.

  • High Volume of Work – Contracts are negotiated and drafted with stakeholders' inputs. This increases the workload of contract managers looking to deliver high output. A common platform for negotiating terms in the contract and creating contracts from scratch can ease the workload of managers.

  • Lack of Transparency – Contract managers are bogged down with frequent questions such as 'has the contract been signed yet?', 'where can I find a copy?' and 'how long till the contract has been reviewed?'. The lack of transparency can be resolved by showing all parties real-time updates to a contract.

  • Slow Signing Process – A frequent bottleneck in businesses is the time taken to get contracts approved and signed by the decision-makers. The traditional process involves saving a PDF, sending it via email, signing it with wet ink, scanning the document, and getting it emailed back. This process can be smooth with the help of online signatures.

Contracts need to be clear and concise in their wording to minimize risks and avoid encountering setbacks. Good contract management practices help managers draft contracts quickly and contribute to the efficiency of the CLM process. Here are contract management practices managers can follow to attain the best results.

Contract Management Practices

  • Centralized Document Storage and Sharing – It is advisable to keep all contracts in a central location to be found easily by all stakeholders. This can include supporting documents such as plans, final evaluation logs, and minutes of meetings. A transparent trail can help protect the privacy of sensitive documents and help in case of any disputes.

  • Track Obligations – Contract managers should be on top of their obligations or risk their contracts becoming void. As contract volumes go up, missing contract renewal dates or deadlines can result in a breach of contract. Easy access to contracts will help managers send timely reminders to stakeholders before their due dates.

  • Record Approval Time – Contract managers should manage getting approvals on contracts with minimum wasted time. This culminates in attaining faster value and revenue generation for the business. Managers can quickly identify bottlenecks in the process and take action to improve the workflow.

  • Controlled Access – Contract managers can limit access to stakeholders to maintain the security and balance of the contract. Giving only authorized users access to documents can significantly reduce security risks and help all parties commit to their roles.

  • Regular Compliance Reviews – Contract managers must meet with the legal team to understand changing regulations and ensure the contract adheres to the latest laws and policies.

How DrySign Helps

DrySign is an eSignature solution with a high impact value on internal processes. Here are some of the benefits of adopting DrySign:

  • Digitize Documents – DrySign helps protect contracts by digitizing and storing them securely. The platform even helps companies create customized contracts and agreements for clients and gain the approval of all stakeholders effortlessly.

  • Improve Workflows – DrySign helps users improve their workflow and eliminates any unnecessary steps in the process. Electronic signatures enhance the productivity and efficiency of contract managers by bringing all stakeholders to a common platform. All revisions to the contract can be made in real-time, and changes can be viewed in the document history.
  • Enhance Collaboration – DrySign can also be used as a central repository for storing all related documents of the contract in a single location. All stakeholders can be kept in the loop, with only designated users getting authorization to access contracts or make changes.

  • Tracking Contract Progress – The contract is reviewed in real-time, with contract audits helping contract managers witness lags from any stakeholders in submitting deliverables.

  • Reducing Delays – Delays can extend the execution period of critical projects resulting in a loss of revenue. Adopting digital signature solutions like DrySign can ensure contracts are appropriately managed, and projects are delivered on time.

  • Automating Notifications and Reminders – Notifications can signal contract renewal and foster good business relationships. Contract managers can set reminders on the platform to ensure deadlines are always met by parties and avoid any contract nullifications.

  • Legally Compliant – DrySign complies with major electronic signature laws worldwide. As a result, all documents signed on the platform are legally binding and protected by the law. Additionally, contract managers can lower their compliance risk and ensure contracts are not tampered with during the transit of documents.

Conclusion

Contract management helps managers in securing agreements and contracts. It can help managers collaborate better with all stakeholders and unlock the business's full potential. Automating the process helps contract managers stay compliant with the terms and conditions of the contract and have the information organized. Create, maintain, negotiate, and renew contracts with DrySign.

Source: Google.com | webinarcare.com

DISCLAIMER: The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly, and Exela cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a licensed attorney in your area.

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