Effective contract management software eliminates confusing dialogue during negotiations and results in a time-saving, less cumbersome contract execution. The process allows for instant verification of contract compliance by all parties and can highlight actionable opportunities.
Larger companies have hundreds of active contracts in place and potentially thousands in their archives at any time. Searching for details of any present or future contract is usually a tedious, labor-intensive chore when contract management and oversight are manual.
1. Reduces Wasteful Negotiating Time
Contract negotiations between two companies can be very confusing without a clear protocol and a single current and easily accessible working draft of agreed-upon and pending elements. While the main intentions of contracts may be determined in advance, parties must collaborate further to develop the details.
With openSourceCM software, all current details are accessible to all sides. Residing in a secure cloud location, the current draft will show the agreed terms, restated conditions, and items that are pending acceptance. Volumes, timing, pricing, milestones, reporting responsibilities, payment terms, and penalties will all reside in the draft awaiting agreement by all parties.
2. Eliminates Confusing Interference
Contract management software replaces an avalanche of phone calls and emails from different departments that usually leave complicated contracts unsettled for extended periods. With this software, authorized parties can electronically sign as each point is accepted. Management can audit the status of negotiations at any time.
3. Verifies Compliance
Contracts are living documents with specific deliverables. Since the agreement implies goods or services in exchange for a particular price over a set period, each party can readily monitor compliance. Every time goods are delivered or services rendered, the contract management software is automatically updated.
4. Reduces Manpower Required for Contract Management
All of the functions of negotiating, finalizing, monitoring, and evaluating contracts are reduced when effective contract management software is employed. Specific questions can be searched and answered instantly. Moreover, management has easy access to the performance of any individual aspects of the contract.
5. Financial Benefits
Contract management software ensures that all obligations are met and penalties are avoided. Compliance can also mean a continuing collaborative partnership that is beneficial for all parties.
6. Improved Corporate Governance
Tracking audit trails to reduce liabilities caused by deviation is simple. Efficient contract software facilitates the M&A process, venture capital, and private equity transactions and enables each party to view the precise status of negotiations.