#contractmanagementhelp

Using the right enterprise contract management software can offer many advantages to your business. Unfortunately, if your employees don't know how to use that software effectively, it can prevent you from fully experiencing many of those advantages. This year, make the most of your legal contract management software. Start with an in-depth evaluation of your contract management needs. Then make sure you utilize these four key structures of enterprise contract management software support. 

1. Use workflows that provide intuitive structure.

As employees move through the contract creation or approval process, there shouldn’t be any mystery.  Can they clearly see the next step in the process and what they need to do to accomplish it? Or are they left floundering, struggling to remember the next step in the process? As you're updating your legal contract management software support for the new year, make your workflows as intuitive as possible. Provide every employee with a clear blueprint that makes it easy to understand what to do next.  You can also use your workflows to automate many of the processes associated with contract management solutions. This will ensure that no steps are missed in the contract creation and management process. For example: Create automated reminders for things that must be completed before contracts are signed. Use your contract templates to rule out clauses or ranges that don't work for your company. Send automated task overviews every time a contract moves to the next step in the process. Your workflows have the ability to create a seamless structure for your employees. That makes it far easier for them to move through each stage of the contract process. Even new hires can move assignments from inception to negotiation to renewal. But, in order for them to work effectively, you must put in the time on the front end to create those effective workflows.

2. Upload process documents.

Process documents clearly explain exactly how to use your CLM software. They should include clear diagrams and explanations for each step of the process. Many employees are reluctant to ask questions, especially if they've already asked the same questions or had the same process explained to them in the past. Long-term employees who use the software often, but who might only rarely have to use it to accomplish certain specific tasks, might be even more reluctant to ask questions. Not only that, it can slow down the process for everyone. If your employees have to go hunting for someone who can train them on how to use the software every time they want to use it, business will lag. Enter process documents. Process documents are key elements of contract management software support because they’re custom-made instructions for every task. They can make it far easier for employees to drill down on how to accomplish the tasks they need to do, whether it's a regular task that they have to complete each day or a task that they have to pull up only rarely.  Make these documents as simple to follow as possible. Also, consider testing them with various individuals within your company. A few trial runs can ensure that they answer all the questions your employees might have about how to complete these key processes. 

3. Get expert contract management software support when you choose proprietary software.

There are many differences between proprietary software and open source solutions. This includes the quality of the software itself and the security it offers. One of the biggest differences offered by proprietary software can make a huge difference to your employees: contract management software support.  When employees have a question or the software isn't working properly, who do they call?  Do you have to troubleshoot on your own? Or do you have access to an experienced team that works directly with this specific type of software? If you're still working with open source software, chances are that your support is either nonexistent or very difficult to manage. The support from a proprietary CLM solution, however, can help each employee: Troubleshoot.Solve problems. Create new solutions for integrations.Customize the software to your business's unique processes. 

4. Offer adequate training. 

Most facility managers and their teams handle day-to-day operations and maintain facility contracts. As part of the job, many facility managers rely on contracting outside vendors for efficient operations. This includes cleaning and janitorial services, plumbers, electricians, mechanics, and many other aspects of maintaining the facility. Keeping track of these contracts and managing them is cumbersome when they aren't organized. That’s where contract management systems come in — our software has features and work processes to help everyone on your team. Facility managers can use contract management software to streamline and automate many of their tasks, too.  Below, you will find some specific examples of ways facility managers can use contract management software. 

Create a Vendor Contract Repository So You Can See the Whole Picture

Contract management systems centralize contract data in one location to streamline the contract management process. Facility managers can create a special contract database to store all of their vendor contracts. Then, they can get rid of obsolete file cabinets and unorganized computer files. A vendor contract repository also provides transparency and ease of access for team members who might need to access information when the facility manager isn't in the building. This fosters communication among team members. Also, it cuts down on the need to dig through piles of work orders, invoices, and vendor contracts. Users can search the repository by: Vendor nameProduct or servicePriceAny other keyword or metadata  Users can store documents, notes, and servicing records, too. This all-in-one solution ensures that no detail gets lost. With such a versatile tool, everyone can get needed information in seconds. Not only does this save time, but it also helps operations continue smoothly.

Organize Contact Information to Improve Relationships and Maintenance

Not all vendors contracted by facility managers provide service on a specific daily, weekly, or monthly time schedule. Vendors related to building maintenance are typically contracted on an on-call basis. For example, on-call services come in when a pipe bursts, an electrical socket quits working, or a handrail becomes loose on a stairway. In these cases, a facility manager needs to know who to call. Facility managers can use contract management software to have all vendor contact information organized in an easy-to-access fashion. This cuts down on downtime and reduced productivity. Once the service representative arrives, the facility manager’s team can ensure the vendor's quote is fair based on previous work. Also, they can review any notes they might have added from the last time the vendor provided a service at the facility.

Manage Your Company’s Vendor Contracts

With a vendor contract management repository and organized contact information, facility managers can better manage vendor contracts. One of the most useful features of a contract management system for managing vendor contracts is the ability to track deliveries and/or work provided by the vendor. Team members can set reminders and alerts to create a preventative maintenance plan.  Contract management systems don't only store documents. They also allow for associated documents such as work orders, invoices, and more. A complete work history supports any claims you have to make down the line. For example, a facility manager might order cleaning supplies once per month. They can set an alert so, if the delivery doesn't arrive as planned, the system sends a notice via email. This allows facility managers to handle any problems or issues with vendor service or delivery in an expedient manner. Depending on your vendor, you can also ensure the documents automatically copy into the contract records with DocuSign and integrated software.

Manage Lease and Renewal Periods Without Missing a Single Date

Commercial leases are highly complex. They can require months of negotiations for renewal. Landlords and facility managers must agree about the type of lease and who pays what costs, as well as factoring in any needed improvements.  Facility managers can use contract management software to set reminders and alerts about tasks associated with negotiating a lease renewal. Some companies might share commercial space with other businesses. As a result, the landlord might pay for common areas or utilities and bill tenants for their portion. These are known as common area maintenance (CAM) fees. Facility managers can also use contract management systems can set alerts to pay CAM fees and other leasing costs that are over and above the base rent for the facility. If you’re considering moving, contract management software is even more essential. It can help you organize the extensive project of: Ending your leaseTransferring service contractsHiring trusted moversTracking the total expenses of the move

Track Expenses and Budgeting to Maintain Adequate Cash Flow

Procurement departments need to have best practices and standardized processes in place. That’s the only way to create loyal vendor relationships that supply affordable, yet high quality, services and goods for a company. Procurement teams are heavily involved in an organization's contracts. So, a slow or error-laden procurement process can affect an entire organization. In our “What Is Contract Management Software?” guide, we talk about the benefits of CLM software for your whole company. Here, we talk about the benefits and uses of contract management software for procurement teams. Below you will find some ways procurement departments can use enterprise contract management systems to manage vendor agreements and limit risk for your entire organization.   

1. Implementing a Clear Negotiation Process

Different members of the procurement team use different incentives or leverage during contract negotiations. But this can cause inconsistencies among vendors. You can be sure different vendors speak with one another, even if only during service or product delivery. If outside vendors sense that they are each being treated differently by a company, it can damage business relationships.  Procurement teams can create a clear negotiation process within a vendor contract management system. Then every team member has access to standard practices, negotiating guides, and contract templates. Although many different features can add to this process, creating one or two standardized documents that specifically outline negotiable and non-negotiable items will have the biggest impact.  Additionally, procurement supervisors can trigger alerts when specific terms of a vendor contract go out of the approved range. This ensures all terms in a vendor contract meet organizational needs in terms of location, cost, quantity, and time — but team members still have room to negotiate.

2. Utilizing Vendor Contract Templates

Traditional vendor contract management might include creating a new contract for each new vendor. Not only is this time consuming, but it leaves organizations open for risk if the language is loose. It can lead to a dropped deal if drafting the contract takes too long.  Whether by an internal legal department or external firm, you can create legally sound vendor contract templates. This eliminates risk by ensuring only approved language is used in a vendor contract. This allows the procurement team to access the template they need and input client-specific data rapidly from anywhere. Contract management software for procurement teams can automatically generate vendor contracts that fit the product type, order specifications, and more.  Supplier contract management software also allows companies to manage specific vendor contacts. That means the addition of client information is automatic or as simple as a click or two.  The time savings from using pre-approved vendor contract templates also reduces the time of the entire contract management life cycle. At the end of the day, your company can get the goods and services it needs more quickly. 

3. Taking Advantage of a Centralized Contract Database

Contract management systems are centered around a repository of a company's contracts and accompanying documents. That includes vendor contracts and documents. This gives procurement teams easy access to vendor contract templates. It also provides easy access to current and previous contracts. With a centralized contract repository, procurement teams can look for new vendor opportunities and opportunities to reduce organizational costs. For example, they can look at previous years’ rates, see if there are overlapping vendors, or ensure price increases fit within the terms of the contract. When the procurement department has user-friendly, organized access to a company's contracts, they can create reports and search the repository, too. Supervisors can also see an entire contract workflow and ensure their team members are completing tasks in a timely fashion. Remaining compliant with the organization’s standard procurement processes and goals is just one of the uses of contract management software for procurement teams.

4. Tracking Contract Renewals & Termination

Traditional methods of contract management make it difficult to track contract renewals and termination of contracts. That can cause gaps in service or missed opportunities to renew or drop contracts.  With the right features in contract management software for procurement purposes, however, it gets easier. The procurement department can set alerts to ensure they don't miss important milestones in a vendor relationship. Once the dates are entered, procurement teams don’t even have to manually monitor the dates. They’ll just receive an email when the deadline starts to loom. This can preserve business and save money, depending on the situation.  For example, procurement teams can set one or more alerts when contract renewal approaches. This gives the team time to audit and evaluate a relationship with a specific vendor. They can take the time to ensure product or service delivery is still necessary and still falls in line with organizational goals. Without pre-planning for the renewal of a vendor contract, companies might automatically continue to spend money on goods or services which they don't need or want.  Additionally, the procurement team can use a contract management system to send alerts if a vendor terminates a contract. This will prevent the team from automatically issuing a purchase order or making payment for a product or service they are no longer receiving. 

But You Don’t Have to Invest in Contract Management Software for Procurement Teams Alone

A complicated contract means a lot to keep track of. Breaking the task down into workflows is a perfect way to make sure that things stay under control. However, a single contract may have several workflows. They can be sequential (each step happens as the previous one is completed) or parallel (two or more steps concurrent). Streamlining contract management workflows is a challenge for everyone. But good workflows ensure that tasks finish up on time and (ideally) under budget. It’s just one of the core capabilities our contract management system offers, and you can read about our 99 features here. Keeping track of them can easily turn into a flowchart nightmare. Many people use separate workflow apps that help ensure that workflow tasks go to the right people. It is, however, much easier to use an integrated contract management system that includes workflow management. So, what do you need to know when creating a workflow?

1. What Are Contract Management Workflows?

It may seem overly simplistic, but the first step to a strong workflow is clearly defining the objective. The steps in a vendor contract management workflow, for example, differ from customer contract management. Then, either break the workflow down into tasks or organize the tasks into a workflow. Some people find it easier to build workflows from the ground up. Either way, working out which tasks belong in which workflow is the first problem. Once you have built a few workflows, you can start creating workflow templates that save a lot of time for similar workflows in the future. For example, if you are a constructor who builds similar small office buildings, you may have a stored workflow template for windows and doors. This process documentation ensures that you do things the same way every time (unless a report indicates a problem). ContraxAware also allows you to initiate workflows from within the system, set steps as parallel or sequential, and more. An on-screen prompt will then guide users through the relevant steps, and the system will keep track of what the current status of a workflow is.

2. When Should Each Step Happen?

When does a contract management workflow need to be completed?  One of the challenges of project management is assigning due dates to things in the middle of the project. ContraxAware gives timeline views that allow you to move workflows on the timeline. Work out how much time the workflow needs and what workflow comes after it. You can then assign a due date for the whole project before going through the template and assigning due dates to specific steps. This means that, rather than having one drop deadline for the entire project, you are presenting employees with a series of steps. Each one has its own due date, and that makes each step more manageable. This helps bring the task under control and ensures things are done in the right order by the right date.

3. Who Handles Each Task in the Total Process?

Finally, you need to assign workflows or steps to specific people. Some steps might need to be assigned to external users. For example, you may need a customer to approve the design of their artwork before you go ahead and print off their t-shirts. The system allows for this.  You can assign contract management workflows and steps to the employees who are best equipped to deal with them. Once you assign the tasks, the system will automatically send them emails, alert them of their assignment and due dates, alert them if they are overdue, and more. A well-built resource library can even have step-by-step directions for complete process control. Contract management workflow templates may themselves assign specific tasks to a specific user.  If, for example, all service-related sales belong to a specific sales manager, the template can send that task to them immediately. Then, the system may automatically prompt them to assign the next step to the best salesperson for the region or industry focus. Supervisors will be able to manage tasks assigned to their team members. Tasks can easily be reassigned if, for example, a team member is sick. To-do lists can be shown as a list or a graph, depending on what the user prefers.

Why Should You Create Automated Contract Management Workflows?

Many companies, even those who have digitized certain aspects of business, still use paper. They manage their contracts by using filing cabinets full of hard copies of drafts, final copies, and signed contracts (which are sometimes left unlocked). In other cases, companies have folders and files on their computers or individual hard drives to store contracts, often unorganized. This can make it just as difficult to call upon information throughout the contract life cycle. Even worse, users find themselves wasting valuable time as they send and receive emails with attachments to review contracts, seek approval, and maintaining complicated spreadsheets for tracking contracts throughout their life cycle. That’s where contract management software comes in. So, what is contract management software exactly? Contract management software from ContraxAware is a specialized technology that allows companies to electronically manage employee, partner, vendor, and client contracts. Ultimately, contract management software provides the tools for businesses to manage any process which creates, uses, or references contract data. So you can recycle those obsolete filing cabinets and let your IT department organize your digital files in a more efficient and centralized way! Reduce your security liabilities and improve your work processes with an automated tool that works just as hard as your team. If you aren't convinced that investing in contract management software is the right choice, this guide offers an in-depth look at some of the specific processes and features provided by contract management software. You can also see the benefits every department in your organization can enjoy when you bring your contract management processes into the future.

Features of Contract Management Software

ContraxAware’s contract management system specializes in creating custom workflows and organizational tools that help your company through every stage of the contract management cycle. Every department benefits from having tiered access to these features: Customizable Contract Database Contract management software is centered around a repository of all contract data, including a database of all current and former contracts. This data is available day and night and allows users to search, filter, share, and sort the data they need in the way which works best for their particular task. This is especially important for facility managers who might need to access a vendor contract on the fly to deal with service delivery issues.  Contract management teams who need to make a request can pull exactly what information they need from the database. The dynamic information fields allow contract authoring teams to generate contracts that auto-populate with customer names, products from the opportunity, and the specific terms and conditions that will govern the deal. Also, they can quickly review contract types and determine the best option. Other features for managing contracts include the ability to search text, track different contract versions, and compare documents. Companies can build a contract database with customer contracts, partnership deals, vendor contracts, and corporate organizational documents. Task & Alert Tracking This feature set allows contract management software users to see their workload and assigned tasks for each contract and generally keep track of the entire contract life cycle. Those in supervisory positions have more access to contract tracking software administrator controls and functions. This allows them to assign and monitor tasks they assign to their team.  Users can create alerts to remind themselves or others of important deadlines like contract expirations and contract renewals. Also, users can create automated reminders and notifications which go out to appropriate parties. This is especially useful for supervisors and managers who need to be out of the office for business or personal reasons. Every automation you can make to contract tracking and task assignment strengthens your business. Contract Authoring It's likely your legal department drafts your contracts or at least plays a large role in reviewing drafts. Contract management software has a number of features that can aid in the quick and accurate creation of documents. For example, the legal department can create templates for each type of standard contract you need, so users can fill in a few necessary data fields and have the draft ready to go. This means your legal team doesn’t have to touch every single contract anymore. You can also set up your contract templates so, when you select a contact, the customer's information merges with a contract to create a draft. Now, users don't need to enter data manually. Contract authoring features in contract management software can also promote self-service in your organization. When users need a contract, they can make a request which goes to the right department for processing and approval. Contract Workflow Management Many other features of contract management software allow users to manage contract workflow. For example, you can create workflow templates for each stage of the contract management process, including negotiations, approvals, and signatures. Once the automated workflows are set up, administrators can assign them to the appropriate department, groups, or individuals. Once a user creates a template, starting a workflow can occur in under a minute. The system will automatically notify each user as they need to take action. This helps standardize your company-wide processes. Contract workflow management features also allow users to track the progress of a contract through each stage and handle any issues as they occur. For example, if a contract has been sitting in your finance department waiting for approval, the person who created the workflow would get a notice if the financing was denied. Contract workflow management features also help ensure all workflow tasks are completed on time.  Once users have been assigned tasks in a workflow, they can receive reminders about overdue tasks on the program's dashboard and/or via email. This cuts down on costly delays and frustrated emails. User Roles  The ability to create user roles within contract management software is one of its most powerful features. Those in management and supervisory roles can add individual users or upload a group of users, so they can access the system. User roles work well to limit access to contracts, contract templates, and other contract data. Not every department — or employee within a department — needs access to the same degree of information and editing power. Implementing strong Role-Based Access Control (RBAC) policies protects your business. For example, the marketing department might need access to contract templates to know how to market to specific groups, but they don't always need access to the editable contract. Sales managers and sales directors each need approval roles, but their approval powers should be different. ContraxAware can make that happen. Not only do user roles help manage workflow, but they also keep sensitive data secure and reduce the risk of a data breach. Permissions can include a variety of things such as viewing, adding, editing, or deleting contracts. Together with contract workflow management, you can also track and oversee user activity and create alerts when specific user-related changes are made.

10 Business-Wide Benefits of Contract Management Software

For legal teams, keeping track of contracts can be a challenge. Even more of a challenge, though, is dealing with the numerous requests that come in, every single day, for new contracts, sample contracts, contract templates… The list can feel never-ending, and legal team productivity can take a hit. If your organization handles a lot of contracts (and most do), you can easily end up spending most of your time answering requests for contracts. While some team members may be able to handle the routine ones, there are always going to be complex issues that need the attention of an actual lawyer or at least a contract manager with strong legal training. Most contract management software is somewhat helpful, but it doesn’t always improvement legal team productivity. Maybe it lets you store contract templates and samples so that you can hand them out easily. Maybe it even merges data into new contracts so you can put them together quickly and give people an approved contract they can use. More advanced systems have AI capability. The closer you can get to complete automation and smooth communication, the better your legal team productivity can grow. ContraxAware offers more than that. In fact, ContraxAware includes an online request portal that allows users to easily request the contracts they need and for any approval they might need. The online request portal offers some amazing features — and if you want to see everything our contract management software has to offer, check out our full list of 99 features.

Users Can Request Contracts Anytime, Anywhere

ContraxAware is contract management software that works across any device. So users (for example, a salesperson on the road) don’t need to come back to the office to request a contract. They can simply make the request from their phone. Unless the request concerns a particularly complicated contract, it can even trigger automated action. This helps legal team productivity by removing the item from their to-do list altogether. For example, salespeople can ask for standard contracts and send straight to the potential customer or vendor. For simple legal contracts, the user just provides the details of the third party and can immediately generate the contract. The system will assign all of the required data elements and put the contract together. Legal team members will be notified of incoming requests both by email and in the system. If a contract type requires a specific person to approve it for compliance reasons, the system will ensure that the person receives a task alert. Even better, the request tool can facilitate communication and encourage recipients to act in a timely manner.

Users Can Easily Send in Third-Party Contracts for Approval

Sometimes, your vendors or customers have their own contracts they want to use. In this case, the system allows requesters to send the contract document to the legal team for review. ContraxAware allows direct communication between legal and the vendor providing the contract, with no need for anyone else to be involved in negotiations. The appropriate users can approve the contract quickly or start the process of negotiating specific terms. This cuts down on back-and-forth emails and delays. Having a process for non-standard contracts cuts down the time costs of each deal, too. Having standard practices for salespeople and contract administrators also boosts legal team productivity. The system may not be able to actually approve complex contracts for you. But it can send them to the right person or to a queue where they can be checked and approved by the next available team member. A version tracking system ensures that the correct version of the contract is the one ultimately sent out for signing. This also allows auditors and managers to trace back mistakes, too. Using third-party contracts can be frustrating and cuts down legal team productivity. But ContraxAware makes it a lot easier to keep track of every step, redline, and change.

Users Can Track the Status of Their Requests

Once a user triggers a contract request, they can track its status. They will know right away if a contract requires additional scrutiny. Contract managers and salespeople will know whether the contract has been approved. They can also track when it is signed by the required parties. The online request and contract management software system is collaborative. It allows communication between all parties, and it encourages productivity by offering transparency. This speeds the process of tracking and approving contracts. 

Users Can Attach Documents to the Contract Request

If you are a sales manager, then contract management is one of your top priorities. This single focus gives you insight into your team, your revenue, and the strength of your team’s performance. For everything from B2B sales standard subscription customers, formal contracts are part of the process. However, a lot of sales managers think that contract management is easy.  It's just a matter of getting people to sign the contract and putting it in a file somewhere, right? But taking a loose approach to contract management is a quick way to get into trouble. A poorly-written contract may turn out not to be legally binding or may put you on the hook for goods or services you did not, in fact, intend to provide. This is particularly true if you are selling to government agencies or hiring creative freelancers who work with intellectual property in ways a lot of people don't fully understand. Contract management software is part of the answer. ContraxAware has powerful contract management software features designed with sales managers in mind. You can read more about our comprehensive list of 99 features, but here are just a few that every sales manager needs:

1. Contract Templates

Writing up a contract takes time you would rather spend on other things. ContraxAware allows you to generate contract templates, which are already approved by legal. Not only is that faster than your status quo, but it also reduces interdepartmental friction. Once you enable your contract templates and contract management software features, you can have unlimited templates, covering all the types of contracts you need. You just have to enter the specific details such as the customer, the term dates, and other details. Then, in seconds, you will have a proper contract that can then be signed by the customer. The system also validates the data you enter. For example, if the customer already has an account, then you will be able to ensure that their name, shipping address, and other identifying details are correct. Contract management software features like this help sales managers train their teams and streamline sales. Contracts can only be created using pre-approved language, and the system won't allow invalid data (such as end dates before term start dates) or other errors.

2. Self-Service Requests

No need to ask legal to send over the contract. ContraxAware has a web portal that allows you to request new contracts easily — including while on the road. Juggling management responsibilities while traveling can cause a substantial drop in productivity, but the right software makes all the difference.  With ContraxAware’s contract management software features, you can request a redline review, ask questions, or start the approval process at any time. Communication between contract management, sales, and legal becomes easy, and you can even facilitate better interdepartmental communication with financial teams or IT.  Emails can disappear, fade from the top of someone’s to-do list, and require you to attach unsecure data to your message. In-system request portals also keep you up-to-date on the progress of the requests and any contracts pending approval. That means you can give your customers reasonable status updates and keep an eye on sensitive projects.

3. Electronic Signatures

There’s an end in sight to printing off copies, getting them signed, and then leaving them in your car or your office. ContraxAware supports digital signature requests, which you can send in seconds to both internal and external signers, right from within the system. You can send the signature request simultaneously to legal and your customer and then electronically send the customer a signed copy.  ContraxAware works in the cloud. So it backs up the electronically signed document and you don’t have to worry about losing it. If your customers prefer to use DocuSign, there is a preconfigured workflow. You can sign on any device, as can they. Signatories can execute contracts on the spot at the job site or after you leave them to sleep on it. The system will send emails to relevant parties as soon as the customer signs the contract. If you’re operating on a tight deadline, the smart contract software can notify the project manager automatically. That means they can start on the product or service right away. The system will store audit trails so that, no matter what happens with your contract, you have a record of exactly who signed it and when. The signed contract can be: ViewedDownloaded and printed whenever it is neededLocked so it can't be amended without the approval of all relevant parties Your salespeople aren’t contract negotiators, so you can remove the responsibility (and temptation) from their user access.

4. Contract Reporting

Metadata is key for organizing contracts (and lots of other things, too). Understanding contract metadata and how to use it will save you a lot of time when it comes to dealing with contracts, especially if you have a large stack of them. ContraxAware lets you use metadata more intuitively than ever before — and that’s only one of the dozens of features our contract management system has to offer.

What Is Metadata?

The basic definition of metadata is data that describes other data. Recursive, right? It's actually fairly easy to understand when you look at some examples. For example, the author of a file is data about the file, so it’s metadata. Contract authoring users, approvers, signatories, even the date of signature… These bits of information are all types of metadata. Metadata is often encountered in terms of web pages. Metadata is expressed as metatags, which are then trawled by search engines. They allow a website to show up in searches, even if the relevant text isn’t on the page. Metatags can also determine things like relevance. A contract management database collects contract metadata about various documents and fields.

What Kind of Contract Metadata Does a Contract Management System Collect?

A CLM system such as ContraxAware will collect a variety of metadata as a contract and its associated documents go through the system. Some examples of metadata are: Contract author (the person who put the contract together)When the contract was createdWhether it is a third-party contract or from one of your templatesCustomer or vendor dataThe user a task or workflow is assigned toProduct specificationsCustom fieldsDocument version (for revision tracking)The user a document is assigned to for approval/signatureDates, such as deadlines, workflow deadlines, milestones, and contract lengthThe type of contractThe user group that has access to the contractContract outcome, once it is knownContract score All of this is metadata. Everyone in your company can use it in a variety of ways, not just your contracts team. Authorized individuals can use metadata to search for specific records, analyze performance, and audit business processes.

How Can Contract Metadata Solve Your Problems?

A traditional paper-based contract management system (or even some less advanced contract software) only stores contracts one way. For example, they might be alphabetically by the customer. But contract metadata allows users to organize contracts and documents in different ways. For example, you can list contracts alphabetically by customer, as mentioned, or by expiry date.  What else can you do with an enterprise contract management system? You can: Group contracts by contract author so you can see which employee is handling which tasks. Then, you ensure that task distribution is fair at a glance.Find a specific document, even if you don't remember which contract it connects to.Check what task a workflow is at and what user that task is attached to. In fact, you can see all of the contracts that are in progress AND that you own by using Boolean search operators.Make sure that the right people have access to a contract or document.Organize the contract repository by any field you want. Metadata, in other words, is what you use to sort and organize your contracts. Good organization is one of the key ways technology can simplify contract management. ContraxAware keeps contracts and their attached documents in a central, secure repository. Metadata helps you find the precise document you need without having to waste a lot of time searching for it. You can endlessly filter and organize contracts to search efficiently based on the information you have or the information you need.

Why Is Metadata Beneficial to All Users?

We've already touched on one benefit of metadata to users: the ability to find contracts and documents without extensive searching. Many people engage in these searches without even needing to know what metadata is or how it works. Contract metadata is also beneficial in a number of other ways: Custom metadata can ensure compliance and flag documents appropriately. This can be useful for legal and HR.Metadata can identify high-risk contracts. For example, you can tag counterparties if they have a high credit risk or if they bring unique value.Tracking contract outcomes can help sales, marketing, and other users identify when a contract might be a problem. You can also pursue customers or vendors associated with good outcomes.You can cross-reference contract metadata with an ERP system. This allows warehousing to predict what kind of contracts might require what kind of parts and, if necessary, adjust order quantities. Metadata does have its limitations. You need to decide exactly what metadata you need to capture, for example. This may vary with the kind of contracts you generally take on, the type of customers you are marketing to, and more. It's difficult and time-consuming to go back and add metadata to several hundred contracts after the fact, but it can be worth it when you switch to a new contract management system! Metadata is also only as good as the person entering it. Aside from very simple contracts that can be automated, everyone has to be careful to ensure that the data that goes into the system is accurate. Field validation can be a useful tool to reduce the amount of false or incorrect metadata that finds its way into the database.

Start Using a Contract Management System Optimized for Contract Metadata Today