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In addition to the problem, there are a few other disadvantages of PDFs when it comes to contract management. Most contract management challenges are caused by user experience, while others manifest themselves in other important administrative activities.
In this article, we'll show some drawbacks of using PDF files for contracts and discuss why using contract templates is better.
But first of all: What exactly is a PDF file?
A PDF (Portable Document Format) specifies a fixed-layout document that can include text, vector images, and links. PDF files are popular because, unlike other formats, they do not require proprietary software and, unlike Word documents, the content cannot be modified. Most computers have native PDF file readers, but you can also use your web browser to create PDFs from web pages or open PDF files.
Which files are usually saved in PDF format?
PDF files are often created using PDF tools from other file formats, such as Microsoft Word documents, web pages, or photos. Despite the fact that PDF readers can convert PDF files into editable forms, documents that must not be changed, such as invoices, contracts, and other legal documents, are usually shared as PDF files. Scanned documents are also usually in PDF format, as they cannot be changed or edited. A PDF file is essentially a digital version of a printed document.
The 4 steps to turn PDF contracts into templates
Step 1: Enter the contract
Read and review the contract thoroughly. Identify all variables and key clauses that should be automated in the next step.
Step 2: Automate your clauses using placeholders
Define placeholders for each variable to replace and automate specific words, numbers, and letters.
Step 3: Analyze conditional elements
Conditional factors make it possible to create text that is only included in the contract if the requirements are met.
Step 4: Involve the contracting parties
The contract should contain information about the parties to the agreement, as well as the parameters of the agreement.
The drawbacks of using PDF files for contracts
Although PDFs are widely used in business, they are not without flaws. There are drawbacks and nuances associated with them. Let's take a look at a few of them.
1. Your data is blocked
They spend hours working on a contract, offer, or agreement. When you hit the “Convert to PDF” button, all your hard work is lost.
What was once a living document is now a digital piece of paper.
It is not possible to copy data from a PDF document and paste it into a database. This means that you must manually enter the data into your systems.
2. There is no way to edit the document
There is no way to correct errors or missing data after converting a document to PDF (or get a PDF document on your desk). The only alternative is to completely reprocess the paper. This is a problem if you have a tight deadline and the PDF needs to get into the hands of managers.
It's impossible to correct this minor grammatical mistake, and your credibility is at stake — not good.
3. PDFs aren't always mobile-friendly
It looks wonderful when you open a PDF file on your smartphone or tablet. Things start to get a little weird when you try to zoom in or out or drag to read. It's annoying to pinch the small screen to perform these actions. Even worse, it could prevent people from finishing the document.
According to the Zenith Agency 81% of Germans own a smartphone. This simply means that usability plays an important role when reading contracts in PDF format.
4. PDF files must be downloaded all the time
In the electronic age, the possibility of a virus or malware is constantly present. This is why many people are reluctant to download anything from an email. If you don't know who the recipient is, you can bet they won't open your PDF.
Even if the recipient knows you, it's annoying to download a document to view it. It also consumes storage space (especially if the receiver is using a mobile device with limited capacity).
5. Version control will give you a headache!
Since PDFs cannot be edited consistently, the only solution is to create a new version with the changes and additions. The problem with this is that it's not always easy to keep track of all the different versions.
In addition, accidental deletions are not uncommon. This makes version control a nightmare for teams. One way to counteract this is to oblige editors to delete previous versions before sending out the updated text.
Why contract templates are more effective than PDF files
As more and more companies are Benefits of digitization recognize their most valuable assets - contracts - this also means the beginning of the end of PDF contracts.
Here are a few important points to consider when choosing traditional PDF contracts or contract templates:
1. Quick and flexible contract drafting
Ready-made and customizable contract templates save a great deal of time for all employees. All your regular templates are stored in one software format in one well-organized CLM so that they are easier to change and retrieve. With the help of a mobile contract template, your team can focus more on the actual tasks. Contracts can be reviewed more quickly and inaccuracies can be checked. This ensures that employees spend as little time as possible on the administrative components of drafting contracts.
2. Better review timelines
Because so many changes are made even in the simplest situations where a revision is required, easily customizable contract templates are very important. With a streamlined contract tool Changes are easy and can be reviewed using redlining on a single platform. This saves a lot of time that was previously spent on mundane tasks.
3. Work on just one version
Everything related to contract templates is tracked, and only the latest version is being worked on — plus, every user is notified when someone interacts with the contract. It simplifies the entire process of contract creation, execution and administration.
4. Search for specific data
With a contract template, every word is searchable, just like in
Internet! Plus, you can search and filter all of your contracts by tag, date, or keywords at the same time — it's like searching for your contracts with spreadsheet features.
5. Save time and effort
Even though efficiency and time savings have been mentioned in many of these key benefits, it should be emphasized that using a contract template simply saves time and effort and allows you to focus on key business goals and more important tasks.
