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The Company
The Company is a Hong Kong-based property developer that also operates in China, Singapore, Malaysia, and Indonesia.
The Objectives
The Company wanted to:
- Digitize its contract management processes
- Find an end-to-end contract management solution that will support both their bespoke contracts (for their property development and construction segments) and their standard-form contracts (for their leasing segment)
- Improve its obligations tracking process and its leasing contract renewal process
The Business Case
The Company has multiple construction projects at various stages of completion across several countries. This made it very difficult to track the status of various contracts being negotiated with its main and sub-contractors. Approvals, in particular, were not being properly tracked and there were instances when wrong approvals were being sought for contracts. In some cases, approvals were not obtained at all.
Recent expansion into a new business segment relating to the leasing of commercial and residential properties also resulted in a significant increase in the total number of contracts being processed by the Company. As lease expiry and renewal periods were not being monitored, leases were often not being renewed before expiry. This led to a loss of income arising from increased rental rates in lease renewals not taking effect from the expiry date.
A search for a company-wide contract management solution that would track all of the Company’s contracts, obligations, and expiry dates was then carried out.
The Solution
Following an extensive RFP process, the Company chose Lexagle to manage all its global contracts. The entire implementation process including the gathering of requirements and customizing Lexagle to the Company’s specific requirements was completed within four months.
One key reason why Lexagle was chosen was the degree of customization which was made available to the Company. A dedicated Lexagle project manager with extensive in-house experience also ensured that the Company’s requirements were well understood and translated onto the Lexagle platform.
Within one month of implementation, all standard form contracts (from leasing, procurement, and HR) were being processed and signed in Lexagle. Negotiations and signing of bespoke contracts (from construction, development, and building management) were also migrated to Lexagle within two months of implementation.
The entire Company now has greater insight into the various contracts that are being negotiated and signed.
Obligations are also now automatically tracked, with alerts for key contract milestones including lease expiry and renewal periods. As a result, all contract obligations and expiry periods are now duly actioned as they fall due. Contract renewals, in particular, can now be done with the click of a button.
The Results
- The Lexagle platform quickly established new benchmarks from the reduction in contract lifecycle duration.
- Improved visibility over the contracting process provided sales and legal teams with actionable insights on bottlenecks and gaps.
- Timely lease renewals (defined as being leases that are renewed on or before the expiry of the previous term) increased from 70% to 99% after the implementation of the Lexagle platform.
- An annual USD 400,000 increase in revenues has been directly attributed to the improvement in timely lease renewals.
