The practice of automating any process is crucial in today’s world because now everything is about speed. If you have speed, you have it all. Hence, any process that is otherwise lengthy needs automation. The same goes for the contract process. Preparing a contract and renewing the lease period can be quite hectic. Maybe the first time while leasing, you may want to invest time in discussions and more. But not every time.
CLM or contract lifecycle management allows you to quicken the lengthy process. It gathers all your sources in one place and makes it easy to deal with contracts, vendors, signatures, and more. There is a big phase with the pre-signature and post-signature of a contract. Hence, one must be very sure that you use a system that facilitates you through all of the key functions with ease and efficiency.
The lifecycle of a contract is long and tedious if the entire work is manual. Therefore, you need software to handle the entire process without creating much hassle. Process procurement is also an essential part of the process. Procuring or collecting rights or assets, signatures, permissions, and more is strategic and critical work. One can get procurement through a bidding process, and hence, it is an essential business decision.
It Starts With a Request
The first step to getting a solid and binding contract is requesting one. Either of the parties or by mutual decision, the supplier and the part makes the contract. The document is legal proof of everything that the contract contains. It is, therefore, essential to ensure that the contract contains the start and end date, and it also contains the details of the property procured. It is equally important to mention any terms and conditions as applicable to the contract. The softcopy of this contract will remain in the CLM software for easy access and further use, and it is also helpful for audit trials.
Documentation and Authoring
After requesting for the contract, the parties need to draft and read the contract before signing. It is important to note that if there are any changes in the contract, this will be the perfect stage to point them out. The CLM software will keep the draft in pdf or doc format. If you want to access the parties who signed the document or the parties involved, you can easily access the information from the draft.
Legal Guidance Comes Next
The next step in the contractual lifecycle is very important because one needs to get legal advice or guidance regarding proceeding with the matter. It is essential to get internal and external approval or advice regarding the contract. Once you have legal guidance or are under supervision, you can be sure that there is no violation of the contract. Legal teams are very vigilant when it comes to understanding the terminology of the contract.
Signing the Contract
This is the most important part of the lifecycle of a contractual agreement because, without the signature, nothing is valid. Hence, only signing the contract can bind both parties to the entitlement of lease. For CLM software, a digital signature is essential. One thing that you must notice is that all of the processes take place very fast, and therefore, there is no need to worry.
You can now save the contract for further use and reference. One thing that you need to know is that once you sign the contract, it is difficult to make changes. Hence, before you sign any contract, make sure that you read it well and do not leave behind any mistakes. If you have a team, then make sure that you get an expert opinion on your draft and only sign it when you are completely sure.
Storage and Access
Not just one contract, but you need a system to store all of your contracts so that you can access them whenever necessary. However, you will want a system that is well protected so that your data can be safe. Easy access is no doubt an attractive feature, but with poor security controls, your data will be vulnerable. Therefore, be sure that there is enough protection and limited access for people.
Easy access means that you can retrieve data whenever needed and apply filters when needed. It makes it easy for you to take out portions from the contract when you need it for reference or proceedings. Since the contract binds the parties legally, it is essential that you fall back on it for any official process.
Why Use Software and Not Manual Process
There was a time when the manual process was everything, but in today’s time, manual process means that you have to exhaust yourself physically. If you have an employee at hand, you can put them to better use and leave some work to the software or machine. You not only get speed, but you also get efficiency. It is smart to solve certain problems through the system and focus your mental capacity on developing your business.
The best part about depending on software is that the work is free from error. There is a strict algorithm that the software will adhere to, and hence, the process will continue as a chain. No one can sit and study or gather all documents and then prepare drafts or rush with the documents to various offices. Most people can finish their work from the privacy of their offices. The more you allow people to lose their stress, the better is the delivery.
You will also save on a lot of money which you may choose to invest elsewhere. But what is more important than money? It is resources and effort which you can lessen and invest wisely. The process is more streamlined and hence, more dependable. You must contact such service providers and automate your process today.
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