contract creation Contract Creation: 8 Ways to optimize
Perfect alignment of all contract management processes has many benefits. By optimizing the contract creation and approval phases, contract management processes can be made sound and efficient at the same time.
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What is contract creation?
Contract creation is the creation of a legally binding agreement that is signed by the relevant parties. This process begins with a contract request, then moves on to contract creation, contract negotiations, contract approvals, signatures, and finally contract signing. Contract creation is where the contract agreement process takes shape. One creates a contract with all the necessary terms, clauses, details about the parties, dates, critical milestones, etc. The accuracy of this data contained in the contract is very important.
What are the challenges in contract creation?
Contract creation challenges are becoming more prevalent for organizations with varying contract volumes and high contract complexity. When multiple people are involved in creating, reviewing and revising contracts, productivity can suffer. Creating documents, downloading templates, locating information, and manually entering data into countless individual fields can take time. In addition, static documents become outdated when the correct document versions and templates are not apparent, increasing the risk of errors. Contract compliance can become a problem if templates, approved wording, and clauses are not up-to-date or standardized.
Optimize the contract creation process
Optimizing the contract creation process allows for improved collaboration within the company. When this process is well organized and executed, content can be easily obtained from all stakeholders. This applies both to people inside and outside the company. Being able to collaborate and communicate with people outside of the company makes things more productive, as it allows you to verify that all data referenced in documents is accurate and up to date.
Below is an overview of the top 8 ways to streamline the contract creation process:
1. Create templates
By creating contract templates, companies can significantly reduce the time required for contract creation. To take advantage of templates, companies can create a template for the types of contracts that are created frequently and in large numbers. When creating templates, standard terms, clauses and documents can be included as defaults.
This not only helps speed up the contract creation process, but also provides consistency throughout the lifecycle of the contract. It is advisable to invest some time in creating suitable templates in advance so that you can save resources later.
2. Converting internal contracts into templates
An easy way to start creating a contract template for the company is to convert common internal contracts into templates. Employment contracts, LOIs, lease agreements, bonus agreements, and confidentiality agreements are good examples. Since these contracts are more commonly used in companies, it is a good practice to create templates for them. Not only does this save time on common contracts, but it also allows for a better approach to other priority contracts.
3. Analysis of common types of contracts
When you have countless of contracts to manage, creating contracts and using templates for different contract processes makes a big difference. In order to take advantage of all the opportunities described above, one must first analyze all the common types of contracts in an organization and decide which of them require a template. Most of the created contracts can be selected for conversion into templates. In this way, one can reduce the level of difficulty and risk in creating and approving contracts.
4. Use of AI functions
As a modern company, one should not shy away from using advanced technologies for contract management in general or contract creation in particular. They offer great advantages and are certainly far more beneficial than one would expect. The contract management software from fynk is equipped with AI capabilities that allow contracts to be created directly from intelligent templates and data to be read from contracts in an automated way, making them usable.
5. Set up approval workflows
Approval workflows are another important feature to set up in your contract creation process. If you have multiple approvers in your company, it is time-consuming and tedious to manually obtain approvals from all of them. Approval workflows, on the other hand, make these processes easy and practical. One can add any number of approvers to the workflow, ensuring that all suggestions and reviews are considered immediately.
6. Creating a central document repository
Document management is a very sensitive and important part of contract management. The ability to access and edit documents and contracts at any time and from any location creates completely new opportunities for enterprise contract creation. Contract management software provides special folders for important documents related to each contract, so that all documents related to a contract can be found effortlessly.
7. Consider contract management software
The easiest and most sensible way to streamline contract creation and approval processes is to purchase contract management software for the company. Choosing contract management software like fynk’s gives you a solution not only for contract creation and approval, but also for managing contracts throughout their lifecycle.
8. Management of authorizations and tasks
Another important step in the optimization of contract creation processes, is the intelligent management of permissions and obligations. Better management of permissions can ensure that contracts are not shared with others. fynk’s Contract Lifecycle Management software has smart permission settings that can be used to effectively distribute create, read and edit functions. There is also an additional feature that allows tasks to be tracked well. So, one can assign tasks to users and track their status easily.
Streamlining the contract creation process is hugely critical to saving both unnecessary time and effort across the organization, as well as being able to generate contracts in a legally secure manner en masse. It is probably the most important process step in the entire contract management process, as it has a direct impact on all subsequent phases. We have listed above the 8 most important ways to optimize contract creation - use them to efficiently as well as effectively create contracts and thus leverage the opportunities of digitization for yourself.
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