The process of negotiating a contract hasn’t changed, even though the technologies to simplify it have. Let us take you through why manual contract negotiations pose a risk for the business and how you can effectively curtail the risks that are attached to contract negotiations.
Just as the name suggests, contract negotiations are the process of coming to an agreement on the terms included in the contract. When parties negotiate contracts, they try to obtain favorable terms for themselves to reduce liabilities and obligations.
This results in quite a few amendments to the initial contract draft. Although these negotiations always increase the contract turnaround time.
Negotiations of a contract delay the entire contract lifecycle quite a lot. This impacts the business in a harsh way. A lengthy and stretched negotiation process can be an uphill road for business growth as contracts do not reach finality in the expected timeline.
Negotiations can happen in real-time as well – over a phone or email. This can lead to more delays as the changes take time to reflect in the actual draft. This process goes on till the parties are not on the same page. These challenges increase triple-fold when the contracts are multiparty.
Let’s look at some top challenges that are universal across the contracting vertical:
The only major technological innovations for contract negotiations were the use of emails back in the 1990s.
Negotiations are the most beneficial when the parties involved are able to come to an agreement and the changes are made in accordance with-in a stipulated timeline. If the negotiations happen through contract management software, the parties would be able to achieve a faster turnaround time. It adds on if the parties involved are using the same platform and are familiar with its interface. The ease of use is a critical aspect of any software.
What to look for in a contract negotiating tool?
Explore our Contract Management System and experience the change in the negotiation cycle with faster turnaround times, automated templates, creation of standard contracts and much more.