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The Challenge: Tracking and Managing Contracts Across a Growing Cross-Border Real Estate Business
The property developer faced challenges tracking contracts, obligations, and expiry dates across its construction projects in several countries and its recent expansion into the leasing commercial and residential properties.
Construction and Property Development
The property developer had multiple construction projects at various stages of completion across several countries. This made it difficult to track the status of contracts being negotiated with main and subcontractors.
Approval tracking was a particular challenge. In some cases, the wrong approvals were being sought for contracts, while other agreements did not receive the required approvals at all.
Leasing
The company’s expansion into the leasing of commercial and residential properties significantly increased the number of contracts it was processing. However, lease expiry and renewal periods were not being adequately monitored, meaning leases were often not renewed before expiry.
As a result, increase rental rates from lease renewals did not always take effect from the expiry date, leading to a loss of income.
The Solution: Lexagle’s Real Estate Contract Management Solution
Following an extensive RFP process, the Hong Kong-based property developer chose Lexagle to manage all its global contracts for two main reasons:
1. Customized to the Company’s Needs
A key reason why the property developer chose Lexagle was the degree of customization available to meet its specific requirements. The implementation process included requirements gathering and customizing the platform to those requirements, with the entire process completed within four months.
Additionally, a dedicated Lexagle project manager with extensive in-house experience ensured that the property developer’s requirement were wel understood and accurately translated onto the platform.
2. Centralizing Contracts on a Single Platform for Greater Visibility
During implementation, the property developer’s contracts across its different business segments were migrated to Lexagle, providing a single platform for managing its contracts and giving the entire organization greater insight into the status of contracts.
- Within one month of implementation, all standard form contracts from leasing, procurement, and HR were being processed and signed in Lexagle.
- Within two months of implementation, negotiations and signing of bespoke agreements from construction, development, and building management were also migrated to Lexagle.
Moreover, as contracts were migrated to Lexagle, obligations were automatically tracked. This included alerts for key contract milestones, like lease expiry and renewal periods. As a result, all contract obligations and expiry periods were duly actioned as they were due. Contact renewals, in particular, could be done with the click of a button.
The Results: From 70% to 99% Timely Lease Renewals
The implementation of Lexagle delivered measurable improvements across the property developer’s contract management and leasing operations.
What This Case Study Shows About Real Estate Contract Management
The property developer’s case highlights several points to keep in mind when managing real estate contracts:
1. Different business segments can involve different contract types.
The property developer managed standard form contracts for leasing, procurement, and HR, alongside bespoke contracts for construction, development, and building management.
2. Lease expiry and renewal tracking can have a direct revenue impact.
When lease renewals are not completed before expiry, increased rental rates may not take effect from the expiry date. For the Hong Kong-based property developer, improving timely lease renewals from 70% to 99% was directly attributed to an annual USD 400,000 increase in revenue.
3. Visibility is important when managing construction and development contracts.
When projects span multiple stages and jurisdictions, having visibility into contract negotiations and approvals can help companies keep track of contract status and whether the appropriate approvals have been obtained. In this case, the property developer had difficulty tracking contracts being negotiated with main and subcontractors. There were instances where the wrong approvals were being sought and, worse, approvals were not obtained at all.
4. A contract lifecycle management system can address multiple contract needs in one platform.
By migrating contracts across its business segments to Lexagle, the property developer had a single platform for addressing its contract lifecycle management needs. The company could see which agreements were being negotiated and signed, automatically track obligations and key milestones, and complete renewals with just a click of a button.
Need to bring your contract management needs into one platform? Request a demo with our specialists to see how Lexagle can support your organization’s contract needs
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