Contract Lifecycle Management – Everything To Get Started

By PracticeLeague, January 19, 2022   |   8 Min Read

“It is impossible to unsign a contract, so do all your thinking before you sign it” - Warren Buffett

That is exactly how contracts work. The process of successfully forming a contract is all over the place. Right from creating the first rough draft to sending the final one for signatures, there are at least 10 versions. The negotiation processes between parties can go for days to weeks to months in the blink of an eye. There can be human errors in typing, or a missed clause that can change the meaning of the entire contract. We can list many more of these instances which have trapped the traditional legal industry in its shackles.

Current Scenarios

With Contract Lifecycle Management Software (CLM) grabbing the spotlight, new-age contracts are rapidly changing the face of the contracting world. The cumbersome paper contracts are being replaced by digital formats. From automated contract templates to e-signatures, a well-tuned CLM offers a speedy contracting process.

What exactly is Contract Lifecycle Management?

The successful execution of a contract does not end at drafting and signing. It is, in fact the beginning of long procedures including negotiations, editing, redrafting, adding standard clauses and much more. It is a time-consuming process which prone to human errors even at the slightest instances. The management of this entire lifecycle that a contract goes through- from the first to the final draft and ahead, is termed as “Contract Lifecycle Management”.

What does a Contract Lifecycle Management Software Do?

A CLM software digitizes the entire process of contract management. It brings your entire contracting portfolio from paper and pen onto a screen. This creates a single digital platform to collaborate on every contract-related task. Legal teams have dealt with heaps of paper-backed contracts, but with a CLM, there won’t be any more heaps on your desk!

Some Facts: Goldman Sachs found that digitizing the contract management process can :

There are 9 stages or processes that a CLM software deals with :

Key Takeaways

A contract lifecycle management makes the entire contracting practice very futuristic. With the power digitization, legal teams can focus more on the law and less on the administrative tasks:

  • The management of an entire lifecycle of a contract – from initiation to renewal or expiry is “Contract Lifecycle Management”.
  • A CLM software digitally streamlines the entire process making it effortless for the legal team to manage their contracts.
  • 9 processes that a CLM looks after:
    • Request
    • Draft
    • Review
    • Execution
    • Repository
    • Record
    • Retrieval
    • Reporting
    • Renewals
  • Lawyers can focus more on the law with a CLM managing the administrative tasks.
  • Benefits from using CLM are transforming businesses into futuristic enterprises.

Final Thoughts

A CLM’s primary aim is to make your job easy. PracticeLeague's Contract Lifecycle Management Software does exactly that. It takes the load off your shoulders and lets you focusyour energy on more important tasks at hand. With our automated templates, redlining and e-signature processes, you can manage your contracting portfolio more efficiently than your competitors.

Recommended Reading

Here are a few case studies on how our CLM has helped numerous of our clients to manage their contract lifecycles without any extra efforts :