What is contract lifecycle management?
Contract lifecycle management powered by proprietary AI can be trained on millions of contracts to instantly identify key clauses and metadata from any contract to provide accurate, real-time analysis. AI can pull your own clauses unique to your business. When creating a contract, contract lifecycle management takes advantage of legal-approved templates built from clauses in your stored contracts so that deals are on your own terms and conditions.
Why should I use contract lifecycle management? The importance of contracts.
Contracts are the foundation of a successful organization. They drive countless business processes, propositions, and more, and will either save or break an organization. The most challenging aspect of construction, negotiation, and execution of contract lifecycle management processes is that they require hundreds of hours of work, multiple collaborators, and multiple departments.
Benefits of contract lifecycle management.
With contract lifecycle management, stakeholders across legal, sales, finance, and procurement can collaborate, negotiate, review, approve, and sign contracts from one centralized platform. This streamlined approach improves accountability and accelerates the contracting process.
²ÝÝ®ÊÓƵ Contract Lifecycle Management, powered by Evisort AI, extracts key clauses and metadata from millions of contracts to support faster, more accurate drafting. The system uses this intelligence to generate legal-approved templates built around your preferred language, helping teams create new contracts quickly and consistently.
Instead of managing redlines, emails, and version control across disconnected tools, teams collaborate in a unified workspace. Edits, approvals, and execution all happen in one place, reducing friction and manual effort. Real-time dashboards provide visibility into workloads and highlight where delays occur in the contract lifecycle. Digital playbooks guide users through each step, reinforcing best practices and reducing risk.
By automating key workflows and enabling cross-functional collaboration, contract lifecycle management helps teams move faster, stay aligned, and focus more time on strategic legal and business decisions.
Factors to consider when buying a contract lifecycle management solution.
Rigid approval process: It is imperative that the contract lifecycle management software has multiple levels of user permissions and a multitiered approval process in order to protect the integrity of your contract. To prevent unauthorized modifications to contracts, the admin can set editing or view-only controls. It is also important to maintain the latest version of a document using document versioning. Where necessary, the system must allow reverting to previous versions.
Third-party integration: Contract lifecycle management software must be integrated with ERP or accounting systems so they can analyze the ROI of contracts. For budget forecasting and other financial reports, accounting teams need quick access to contract terms. It should also integrate with key business and productivity apps such as cloud storage, sales software, document management, and customer relationship management software.
Security: It is always a major factor when it comes to vendors. You should look for security features such as two-factor authentication, data encryption, user permissions, and access management. Verify that the vendor is legitimate and has a long-term reputation.
- Automation: How can contract management be automated to maximize efficiency? Templates may be selected for entire contracts and clauses, reports can be generated, and stakeholders can be notified when approval is complete.
What are the 7 steps of the contract lifecycle management process?
There are seven steps to the contract lifecycle management process.
1. Template authoring: Template authoring creates templates that content authors use to create contracts.?
2. Contract creation: In order to manage a contract, an individual or team must submit a request outlining the terms of the contract. A sales agreement, NDA, loan agreement, or licensing agreement might be an example of this type of contract. After a request has been made, the legal team drafts the contract. With contract lifecycle management platforms, you can easily input approved, consistent language into a document with one-click options for preferred terms and positions. Using them also allows counterparties to make their positions clear in a negotiation, enabling transparency and producing an automatic issue list without having to manually compare documents and make changes.
3. Contract review: Once the initial draft of the contract is created, a lawyer has to revise and review the validity and quality of the contract.?
4. Contract approval: The contract in question has to be viewed by all parties in order for the contract to be approved.?
5. Contract execution: It is often necessary to obtain final approval before execution¡ªand then the collection of signatures, which can take a considerable amount of time when several signatories are involved.
6. Contract performance: Contract performance requires all members of the contract to fulfill their promised obligations.
7. Contract expiration: In the event that a contract has reached the end of its term, it is either renewed or terminated automatically or manually, according to mutual agreement. Contract lifecycle management can help manage this process too, with autorenewals and notifications to relevant parties at the required time in the contract lifecycle.