Previously the contracts were managed manually. As a result often there were a lot of errors in those contracts. Some contracts also used to get lost because they were stored in the file cabinets. But these days the scenario has changed completely. There are certain contract life cycle management solutions. These solutions help you to manage the contracts in the best and the most efficient way. There are certain companies that have to handle contracts on a regular basis and for such companies it is very important to handle these contracts electronically.
There are a number of stages of handling a particular contract. If you are interested to know more about these stages then you can go through the below mentioned points:
- Contract requesting process
The contract life cycle management first starts with the contract requesting process. At this stage there is one party that initiates the process. Then the information is used to draft a contract.
- Contract negotiation, authoring, review and red lining is done at this stage
At this stage the document is generated using CMx. All the terms, clause and conditions of the contract are included in the document. It is this stage where the signing parties and the approvers of the contract sign the document.
- At the third stage a legal review of the contract is done
The document of agreement that is prepared is then submitted to the external and the internal approvers. Once the document is approved then it moves on to the next stage.
- The contract is executed and the agreement is signed
After the document is approved then it is sent to the parties for signature. This signature can be either done manually or online.
- Contract depository storage or database
Once the contract is signed then it is stored in an easily retrievable database. Both the documents as well as the meta data is indexed. This is done in order to store for future.
- The next stage is the stage of record management
All the important business documents are controlled at this stage. This is done with the help of a very reliable record storage system. There are also certain retention enforcement policies that provide you with the confidence that the data will be stored securely. This data also needs to be stored with a very high compliance.
- Easy search and the retrieval stage
At this stage the business users are able to easily search important documents by applying filters. This also helps in a very easy retrieval of the important documents for the contract system.
- User activity and reporting
User activity is captured at every stage and the documents and contract meta data are also suitably indexed. This helps in an efficient retrieval and the production of in depth reports.
If the contract management cycle is followed then you can be rest assured that your contract is safe and secured. In the traditional ways of contract management about 10% of the contracts would get lost. This would make it very difficult for the companies to undertake business. By following the above procedure the contracts would be efficiently managed.