Step 1: Establish Clear Terms and Conditions
We’ve gone over the basic principles of drafting a contract in this blog article, where we highlighted the importance of keeping contract terms concise and clear. Establishing precise terms and obligations is the first step in building a strong basis for any contract. This step is essential for avoiding misconceptions and making sure that everyone is on the same page. The foundation for a productive working partnership is laid by clearly establishing and expressing expectations, deliverables, timetables, and responsibilities. Below is a closer look at why this step is necessary and how to describe these components correctly.
Use clear, concise language and steer clear of unclear or obscure terminology that could be interpreted in numerous ways. To avoid confusion, be precise and utilize simple terminology. Document these commitments in writing and include the definition of the terms and obligations in your contract. This gives everyone a concrete point of reference and lowers the possibility of misunderstandings.
Engage all key parties in the process of determining the terms and obligations, such as project managers, team leaders, or clients. This collaborative method makes sure that many viewpoints are taken into account and that the defined terminology reflects the general consensus.
Terms should also be periodically reviewed to make sure they are still applicable and in line with how the project or working relationship is developing. When there are updates or adjustments, make the required revisions to prevent future misunderstandings. These requirements become even more imperative in the absence of the usual face-to-face meetings, where stakeholders discuss in one room.
These often lengthy exchanges of correspondences, negotiations, and documents are better facilitated through a single, secure contract management platform that has features to provide each party with automated reminders and real-time progress updates on contracts. Collaboration is also enhanced with the guarantee that the document everyone is collectively working on is always the latest and correct version. This way, in-person discussions can easily be replicated virtually, at the same level of confidentiality that one can expect from a closed-door conference room and a short list of attendees.
Step 2: Use the Proper Jurisdiction and Applicable Law
The jurisdiction and governing law should be in line with your business interests in order to safeguard your rights and promote efficient contract administration. In the event of a disagreement, it guarantees the enforceability of your contracts. Levels of enforceability and dispute resolution processes differ amongst legal systems. It might be difficult to navigate international contracts and select the proper jurisdiction and controlling law. It is wise to consult with legal experts who are knowledgeable about international contract law. They can assist you in gaining an understanding of the subtleties of the law and the effects of choosing a certain jurisdiction and governing law.
International treaties or agreements may occasionally have an effect on the choice of jurisdiction and governing law. These agreements may offer additional legal protections for international business deals. It's crucial to look into and take into account any relevant international treaties or agreements that can have an impact on your contracts. You can manage these considerations by seeking legal counsel from experts in international law. You can also include a choice of law and forum clauses in your contracts to expressly state the preferred jurisdiction and governing law. A forum clause specifies the place where any legal issues would be heard, whereas a choice of law clause specifies which jurisdiction's laws will apply to the contract. These clauses offer clarity and lessen the chance of disputes about jurisdiction and governing law.
Contract management platforms empower companies to build libraries of templates bearing standardized and legally binding language and claused, indexed by location and compliance requirements.
Step 3: Streamline Approvals and Automate Manual Tasks
Data input, document generation, and approval routing are examples of manual contract administration tasks that can be time-consuming and prone to human error. These tasks are automated by contract management software, which eliminates the need for manual involvement and ensures correctness and consistency. Organizations can optimize their contract management procedures, free up important time, and concentrate on higher-value duties by automating repetitive and lower-yield tasks.
In this previous blog, we delved into the fundamentals of contract management workflows.An essential component of contract management is approvals, and delays in this process can impede work and have an effect on business results. Organizations may create preset approval workflows and assign stakeholders specific roles and duties by using a contract management software. The platform can ensure that approvers are instantly notified through automated notifications and reminders, speeding up the approval process and reducing bottlenecks, with recent studies showing that this automation can expedite negotiation cycles by as much as 50%.
Using a contract management software, businesses can automate the tracking of contract milestones, manage pending tasks in a single glance, receive notifications for important dates and reduce the likelihood of missed deadlines and non-compliance. It can simplify the process of tracking, searching and retrieving contract documentation by providing a single, secure repository for all contracts.
Step 4: Leverage Actionable Analytics to Evaluate Contract Performance
Timely and accurate data is vital for efficient decision-making and process optimization. Visibility into contract performance, important indicators, and insights are necessary for effective remote contract management. With real-time visibility into contract statuses, significant milestones, and financial ramifications, a contract management software can offer complete reporting and analytics capabilities. Management can then make educated decisions, spot bottlenecks, and streamline operations with a data-driven strategy.
With a contract management software that has reporting and analytics features, companies are able to locate gaps or inefficiencies in the contract management process. Teams may identify areas that need improvement, streamline processes, and allocate resources more efficiently. Reporting and analytics enable businesses to boost overall productivity, whether it's locating approval delays, arduous manual chores, or communication gaps.
Manage Your Contracts Anywhere With Lexagle.
Changing times require companies to quickly adapt, and contract management is now becoming one of the easiest processes to automate, thanks to a variety of contract management software solutions available in the market today. Lexagle stands out from the rest by incorporating a variety of features, customizable to directly address specific client needs.
Lexagle boasts features such as the Lexagle Vault™ for a secure, central repository for all your documents. Users can also maximize the unlimited and legally verifiable electronic signatures and the Internal and External Rooms for real-time collaboration. Standardized templates are available across all departments via our Template and Clause Library, and contract performance can easily be tracked on the dashboard and the analytics report.
Those are just some of the benefits that Lexagle offers. Learn more about our solutions by scheduling a demo today.