Smart Approach to Contract Authoring. Contract Authoring Software.
Contract authoring sets the foundation for your agreement and its entire management process. However, with the increased density and complexity of modern contracts, it’s no longer practical to use traditional writing methods. Integrating a contract authoring tool allows you to spend less time and resources on the authoring phase and move ahead in the management process faster.
What is contract authoring?
Contract authoring or contract writing is the stage of the contract lifecycle that involves all parties and stakeholders putting the terms and conditions of their agreement into writing. Typically, the parties bring together standard clauses, pricing information, line items, key dates, and milestones, as well as other essential information.
The contract authoring process
Contract writing is one of the most important parts of the overall contract management process. Considering that contracts are central to basic business operations, your company must have an efficient way to write quality contracts beneficial to both parties.
Here are some things to keep in mind when writing agreements:
- Include important information at the beginning of the agreement, so it’s easy to find
- Use language and terminology that is easily digestible to limit misunderstandings
- Keep the contract concise by only including essential information
- Maintain awareness of your goals and objectives when authoring the contract
Traditional contract authoring VS using a contract authoring tool
Intelligent contract authoring is out of reach for many companies that still insist that their manual practices are the best. However, they fail to realize the true differences between the two methods and the various benefits of implementing CMS to write contracts.
Here are some of the ways that traditional contract writing and using contract writing tools differentiate from one another:
Traditional contract authoring
When companies manually write their agreements, they typically create the document from scratch on word processing software. Then, all stakeholders collaborate and negotiate on what terms should be written in the agreement. Once the parties have a final version that they agree on, the document is signed and filed somewhere on a hard drive or filing cabinet.
- No initial start-up costs
- Don’t have to train your team on using a new platform
- Can use your pre-existing authoring methods
- Waste time authoring each contract from scratch
- Lack of remote collaboration features
- Unorganized storage methods
Contract authoring software
Utilizing contract authoring software gives businesses the ability to create agreements using pre-made templates. This means that they can easily choose from a library of standardized clauses and terms to find a match for their document. Once the team chooses a template, the stakeholders can negotiate remotely and collaboratively on the platform. When a final agreement is reached, the parties can virtually sign and store it in a secure repository.
- Ability to utilize standardized templates to draft agreements
- Improve negotiations with real-time collaboration tools
- Store and manage agreements on one cloud-based platform
- Start-up costs may be high for some companies
- Have to spend time training your team on how to use the software
- Technology-based contracts may be intimidating to some individuals
3 tips for enhanced contract authoring
You will significantly boost the productivity of your current CLM process when you implement a contract authoring tool to optimize your contract creation stage. However, if you want to get the full benefits out of your new business solutions, you should understand how to utilize the software and all of its features.
Here are some of the ways that contract management software can enhance your contract writing process:
1. Contract templatization
Drafting each contract from scratch is a time-consuming and tedious process. A contract management software with a smart template library gives you the ability to choose from pre-made terms and clauses when writing your agreements. You can also customize the templates to suit your specific contract by utilizing auto-fill capabilities.
2. AI clause management
Machine learning and AI help analyze clauses, review contracts faster, organize contract data more efficiently, improve negotiations, and increase the number of contracts that you can create at any given time. Utilizing AI-based platforms allows you to streamline your authoring process while boosting the benefits of your agreements.
3. Collaboration with team members
The traditional contract authoring process doesn’t give your team much room to collaborate effectively. By implementing a smart CMS, your team and the counter-party will be able to see changes in real-time, remotely redline and comment on documents, and track various versions of the same document. These features eliminate confusion while optimizing how your team works together to create business deals.
The importance of fast and intelligent contract authoring
Contract authoring software is the best way to boost the way you write your business agreements. Implementing CMS helps you achieve a smooth and streamlined contract authoring process by optimizing each step through automation. Features such as templates, AI integration, and collaboration tools allow you to create contracts with ease.