In today’s fast-paced business environment, leading organisations recognise the value of investing in contract lifecycle management systems.
A legal contract management system is a tool that helps organisations manage their contracts and contract lifecycles efficiently. It allows the in-house lawyers of organisations to manage the lifecycle of their contracts, from drafting and negotiating to execution and renewal.
We will discuss the entirety of a contract management system, including its benefits and features, and how to make the best choice of contract management software for your in-house lawyers.
What is a Legal Contract Management System?
A legal contract management system is a software tool that helps the in-house lawyers of organisations manage their contracts throughout their lifecycle. A legal contract management system centralises contract storage and management, automates contract workflows, and guarantees adherence to legal and regulatory standards.
The system streamlines contract management processes by automating tasks such as contract creation, approval, execution, and renewal. It also helps organisations manage contract-related information, such as contract terms, milestones, and obligations.
Benefits of a Legal Contract Management System
Implementing a legal contract management system can bring several benefits to an organisation, including:
Improved Contract Visibility: A contract management system like nextPLOS provides a centralised repository for storing and managing contracts, making it easier for organisations to track their contract, statuses, and target.
Increased Efficiency: A contract management system automates contract workflows, reducing the time and effort required for manual contract management tasks.
Enhanced Compliance: A contract management system ensures compliance with legal and regulatory requirements by providing a framework for contract management that meets industry standards.
Reduced Risk: A contract management system helps organisations manage their contractual obligations, reducing the risk of breaches and associated penalties.
Cost Savings: A contract management system can reduce the cost of contract management by streamlining processes and reducing the risk of legal disputes.
Features of a Legal Contract Management System
A legal contract management system typically includes the following features:
Contract Repository: A centralised repository for storing and managing contracts.
Contract Templates: Pre-existing contract templates are readily available for the most commonly used contracts. Also available are tools used for creating, reviewing, and approving contracts.
Contract Workflow Automation: Tools for automating contract workflows, such as approval and execution.
Contract Tracking: Tools for tracking contract status, key milestones, and obligations.
Reporting and Analytics: Tools for generating reports and analytics on contract performance and compliance.
Contract Collaboration: Tools for collaborating on contract creation and review. Also, empowering in-house lawyers to ensure that all contracts are rightly approved before the organisation’s exit
How to Choose a Legal Contract Management System
Choosing the right legal contract management system for your organisation can be challenging. However, a direct suggestion will be nextPLOS as it offers a wide range of solutions for in-house lawyers of organisations.
Below are some essential characteristics to consider when selecting a contract management system:
Business Needs: Consider your in-house legal team’s unique needs, such as the volume and complexity of your contracts, before selecting a contract management system.
Ease of Use: Look for a contract management system that is easy to use and intuitive, with a user-friendly interface.
Best Practices: While the majority of lawyers look out for organisations that offer customisations, it will be smart to look out for solutions that provide the best practices that your in-house team can learn and incorporate
Integration: Look for a contract management system to integrate with another system.
Security: Look for a contract management system with robust security features to protect sensitive contract data.
Support and Training: Look for a contract management system that provides comprehensive support and training to ensure your team can use it effectively.
Cost: Consider the total cost of ownership, including software licenses, implementation, training, and ongoing maintenance and support.
Implementing a legal contract management system can bring several benefits to an organisation, including improved contract visibility and so much more.
nextPLOS is building a comprehensive contract management system that addresses the crucial aspects of a complete contract management system that initiates an improved, streamlined, and more innovative contract management journey.