Contracting Tech Center
Contracts are the lifeblood of every business. Contracting technology helps lawyers and business professionals automate the drafting and review of contracts. It also helps corporate legal departments manage, search and monitor contracts after they are signed. In recent years, the market for contracts technology has become red hot. Major investment firms have poured billions into the companies that are developing this tech, with at least one recently becoming a so-called unicorn, meaning it is valued at $1 billion or more. For buyers in this market — many of whom are in corporate legal departments — that means there is an abundance of riches in the products available to them. But that also makes the selection process that much more difficult, as buyers must sort through a glut of competing products and claims.
Categories of software used in Contracting
Contract Automation and Drafting (Through Signature)
Contract Database Management
Contract Lifecycle Management
Contract Review and Analysis (Post Signature)
- Contract drafting and workflow applications facilitate all or some of the steps in the contract formation process from document generation, review, redlining and approvals through signature, and may include clause management, document assembly, routing for approvals, counter-party collaboration portals, and e-signatures.
- Contract database management systems create organized repositories for contract documents that facilitate easy shared access to relevant documents based on indexed terms and search functionalities, and may include additional functionalities such as document assembly, approval and signature processing, obligation monitoring and notifications, and integration with CRMs.
Contract lifecycle management (CLM) products provide a suite of applications that handle all or many of the processes involved in end-to-end contract management, from contract generation, drafting and approval workflows, to contract database management, to post-execution contract review, analysis and performance monitoring.
The purpose of CLM software is to manage contracts from offer and acceptance to maintenance and renewal or expiration. The software handles contracts as agreements between two or more parties that create legal obligations enforceable at law and bring a risk of non-compliance with terms and conditions.
- Contract review and analysis software manages and reduces risk in agreements between two or more parties that create legal obligations enforceable at law and bring a risk of non-compliance with terms and conditions. The software assesses contract requirements, monitors performance, and alerts staff when operating parameters exceed organizational risk levels. The software ingests signed contracts, generates metadata, analyzes data, predicts future outcomes, and recommends action to reduce risk and engage opportunities.
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