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Vertragserstellung auf Basis von Vorlagen

Companies Beware: Legal Tech Optimizes Contracts

The legal sector has changed significantly with the help of technology. This new sector, in which legal activities are supported by technology, is known as legal tech. With the gradual introduction, the everyday life and work routine of many lawyers has already drastically changed.

In a recent survey by European Company Lawyer Association (ECLA), it was found that 63% of the interviewed participants, consisting of around 400 corporate lawyers from five European countries (Germany, the Netherlands, France, Spain and Belgium), expect that between 40% and 80% of their daily work will involve legal tech over the next five years.

Depending on the complexity of a legal agreement, the number of different versions of a single document created during a negotiation cycle can often be astonishingly large. Good contract management software can significantly reduce this output, as it simplifies the process and significantly simplifies the process through integration with other web or mobile applications. The following functionalities are now almost part of the standard repertoire:

  • Automate contract approval, preparation, and negotiation process
  • Efficient management of contracts and contract data
  • Less time spent finding and processing contracts
  • Minimizing risks through the use of approved clauses while increasing the speed of implementation

Why should an organization implement contract management software?

The advantages of contract software mentioned below will make it more difficult for companies that want to continue to stick to printed copies of contracts to compete in the future.

“The use of contract management software creates long-term competitive advantages”

Because cloud-based contract management not only makes a company's document management more efficient, diverse, effective and faster, but also more versatile. Customers will gradually expect professional processing of contracts via software. Powerful contract software will therefore become a basic factor that needs to be fulfilled.

In addition, most contract management solutions make it easy for companies to comply with compliance standards. This allows companies to significantly reduce follow-up costs for non-compliance and legal risks. By tracking all activities, companies also have access to a complete audit log, which can be used to ensure that no contract violations have been committed.

What types of contract-related activities are supported?

Many software providers for contract solutions now provide support for a variety of different contract-related activities. This includes:

  • Distribution
  • Personnel
  • Leasing
  • Building management
  • Licensing
  • Intellectual property
  • Confidentiality
  • Subcontracting and outsourcing
  • Procurement and many others

Many processes that are taken over by contract software can be easily subdivided into a preliminary or post-processing phase, as described below:

Use of software in the preparation phase speeds up contract preparation and negotiation

Before a contract can actually be signed, the contract software usually manages document creation and customer inquiries, which ultimately result in a contract. Some software suites even offer a comprehensive library of templates to further facilitate initial contract creation. After the initial draft, the software can also be used to efficiently negotiate contracts directly via the software interface. Redlining and markup functions are increasingly being offered to offer negotiations directly via the software.

Taking over the follow-up phase saves administrative costs

During the post-execution phase, the software supports business leaders by centrally filing contracts and documents in an easily accessible online administration system. In addition to the unrestricted availability of contracts for authorized persons, contracts can be evaluated according to key terms and deadlines can be managed. This makes it easy to track and comply with critical deadlines and agreed clauses.

Conclusion

Contract management software is really helpful when you want to easily manage all your paperwork, contracts, and agreements. It helps to automate many contract-related tasks, saving time and money for every company. You can also access a wide range of templates to further speed up contract creation. At the same time, a variety of different reports on your contract portfolio can be retrieved. This gives you a constant overview of your key parameters and legal risks.

With the help of software tools for contract processes, it will also gradually become easier for you to turn more leads into customers, because contracts are available quickly and can be negotiated and concluded directly and easily. As a result, a positive contribution is often made very quickly.

Contract management software will become one of your most important tools for the sales and contract process in the future.

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