Managing the lifecycle of your contracts is an important part of doing business. Contracts are created, signed, queried, and re-signed. They are amended and reviewed. They are executed and overseen. And they are terminated. All of these processes are essential to ensure that you have only the contracts you need for your business, that they are legally binding, and that you can show how you performed on them at any time.
Businesses find it difficult to manage their contract lifecycle without some sort of software solution. Here’s why it’s so important that you adopt one today.
Why Is Contract Lifecycle Management Important?
Contract lifecycle management is important for several reasons. First and foremost, it can be a major challenge for businesses. Without a system for managing their contract lifecycle, they’re at risk of unknowingly creating contracts that aren’t in keeping with their company’s brand.
Contract lifecycle management software allows businesses to take control of their own process. The contract lifecycle management process can be time-consuming, especially for those that don’t have a strong system in place from the get-go. By leveraging contract lifecycle management software, businesses are in control of how they run their process, rather than relying on a third party to manage it for them.
What Happens When You Don’t Implement Software Solutions?
If you don’t maintain the lifecycle of your contracts, you run the risk of having your contract rights compromised. For example, your business could be sued for non-performance or for a contract being accidently violated.
Then, there’s also the possibility of delays. There are circumstances that may delay you from doing getting your contracts in order. For instance, may be on deadline with your current project. This can mean that your partner may be waiting to receive feedback on the current contract and may be looking to take on new work elsewhere due to the delay. It can be hard to get your contract work done when all of these other pressures are going on.
For these reasons, it is essential to have all of the contracts in place for the various processes your business uses as a whole. Without them, you risk running afoul of contracts for your right to access and to enter customer data, for instance, or the right to be compensated for that access.
Without contract lifecycle management software, you won’t have the ability to know how things have changed over time and therefore will be unable to spot inconsistencies.
The Benefits of Contract Lifecycle Software
Automating repeatable tasks is very valuable to any business. Contract lifecycle management software improves efficiency in multiple ways:
- You’ll spend less time analyzing contracts and crafting responses to requests and proposals from your customers.
- The automated contract lifecycle process saves you time, and you’ll be able to focus more on what’s important for your business.
- You’ll improve collaboration and minimize potential conflict within your team.
- Contractors will get more client calls and queries, and you’ll have a better handle on which vendors you’re working with.
With a contract lifecycle management software solution in place, you’ll have the time to deal with all of this and more effectively and on time.
Using technology to facilitate contractual agreements is a critical part of running a successful business. Use these tactics to make it an easy process, and ensure that your contract lifecycle management process runs smoothly.