In our previous article, we discussed the greatest risks of manually operating all of your legal contracts. These dangers can be critical, yet many organization is still dependent on manual processes in doing their contract management.
Contract management is one of the most essential processes inside an organization. It’s the backbone of any deals, partnerships, employment, and even purchases of supplies and deliverables from third-party contractors. That’s why as a business owner, you should learn the best practices for contract management in order to maximize the result you’ve been expecting.
In this article, we’ll look at greater options that are possible for contract management. These best practices for contract management can be applied for all types of organization, from a small startup into an established corporation with a thousand employees.
Systematize your legal contract drafts
Utilize standard templates that are up-to-date for your company. These drafts should be updated every semester or so to make certain that all the ordinances and conditions are up to date. Missing an ordinance update is one of the dangers we considered, and can lead to some serious financial risks for your company.
2. Save all your legal contracts in a central server
By having a special place where every part of your contracts is saved, you reduce any chance of lost documents.
3. Build compliance control in the contract process
Adding a step to the contract process where all compliance regulations are checked and double-checked is a great way to mitigate risk. It may not seem imperative at the time, but this small step can save you a lot of money and headaches in the long run.
4. Systematize the contract negotiation process
Create a step-by-step process for the negotiating of a contract, and make sure you stick to that process. With this standardization, non-lawyers can follow the steps and handle standard agreements without too much help from a legal team member. Lawyers are usually very expensive talent within an organization, and you don’t want to take up too much of their time performing tasks that can be done by others.