Bottlenecks can hold up what initially seemed like a straightforward contract approval process. The good news is that making a few adjustments to contract management procedures may eliminate frustrating bottlenecks altogether.
Bottleneck #1: Getting Contracts Out Is Time-Consuming
Sending out contract files should be a quick, simple process. All you need to do is open a new email, type in the recipient’s address, and click a button to attach the contract. That
This bottleneck is one of the easiest to fix with some front-end planning. Storing contracts in a central, cloud-based system
Bottleneck #2: Contract Approval Takes Forever
Many companies lack effective controls and procedures to ensure that all users are working with the correct version of a contract. A complex contract may require many people’s approval. If one person is working with an outdated file, the process can easily turn into a bottleneck.
A cloud-based system ensures that users view the same, up-to-date document. Eliminating email back-and-forth plays a large role in streamlining the approval process. You can improve security at the same time by assigning users the appropriate levels of viewing, downloading, and editing privileges.
Contract security and accuracy challenges can also lead to extensive bottlenecks. If signed contracts are delivered by mail or fax, validating signatures may be a concern. You may have to dedicate hours comparing documents received against the original contract, word for word, to ensure there are no unauthorized changes. This wastes both time and billable hour revenue.
Electronic signatures can dramatically improve contract management security procedures. Helpful features to look for include two-factor authentication to verify user identity and an e-signature feature that complies with any relevant state regulations.
Bottleneck #3: Most Contract Management Is Handled Manually
For many companies the contract management process is a manual one, relying on a team of individuals to review each contract and its terms. This itself can be a bottleneck, as human error is bound to occur which can lead to costly mistakes.
The use of contract management software can help automate this process, improving efficiency and reducing risk. Automating milestone checkpoints not only saves