CONTRACT LIFECYCLE MANAGEMENT
Improve efficiency, gain insight, reduce risks There would be no business without contracts. Contracts manage your risks and help to ensure compliance. Which is exactly why it is vital to manage them well. For the corporate legal team, actively managing contracts throughout their lifecycle is the fastest way to ensure compliance, reduce risk, enhance efficiency and provide transparency around contractual rights, obligations and opportunities. Could your team benefit from adopting contract lifecycle management?
CONTRACT LIFECYCLE
Lower your risks, create insights and move faster with contract lifecycle management Contract lifecycle management is a fast-growing business concept that improves compliance and efficiency while reducing risk. It further ensures that stakeholders within your company who need contract insight have it. Good contract lifecycle management makes your business faster and more flexible. It ensures you can identify your obligations, assess your risks, spot opportu-
Here are some indicators:
nities and develop mitigation strategies quickly.
• Your contracts are on paper and stored in people’s desks • Digital contracts are scattered across computers and departments, with no central repository
Legadex can help you take control with contract lifecycle management
• You have no clear overview of your contractual rights and obli-
As a specialist in contract lifecycle management, Legadex com-
gations, or insight into the associated risks and opportunities
bines consultancy services (advice on processes, authorisations,
• You have no structure people can use to pass on insights and
technical infrastructure, flows, alerts, metadata and more) with
information regarding contractual rights and obligations • It is unclear who is authorised to negotiate and execute differ-
implementation. We can advise on, deploy and run your contract management lifecycle system. And if you only want help in part
ent types of contract and no workstream to ensure the right
of the lifecycle, we can assist too. We define six phases in the
people are involved in the process and sign-off
contract lifecycle:
• You regularly get asked to draft and review contracts when that’s not your job • Negotiating contracts and obtaining approvals and signatures is taking up too much of your time
• Contract Generation • Negotiation & Drafting • Approval Flow • Signing & Execution • Retention & Audit (Repository) • Obligation Management
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Contract Generation
Signing & Execution
Contract generation involves centralising the contract
Like approval, contract signing can be automated within
creation process. Instead of people reusing old contracts
your organisation. Just set an authorisation schedule for
or contract templates to create new ones (which can
every agreement and ensure the signing tool includes
increase risk and reduce compliance), Legadex can fully
the correct signatories within your company. We can
automate the generation of contract drafts. The result
help you set this up and implement this in your contract
is that business users can create a fully completed
management system of choice.
contract simply by answering a couple of questions. You can use these tools to build any contract you want. Legadex can define the most effective questions to include, structure them and build them into your contract management system of choice.
Retention & Audit Retention and audit, also known as the repository of contracts, is where the legal department collates, structures and creates an overview of all contracts and makes these visible to everyone who needs them. This
Negotiation & Drafting
is the traditional contract management element within
The vast majority of contracts are relatively simple
the total contract lifecycle. The repository is a mine of
agreements that require only limited negotiation. This
information covering end dates, obligations and risks.
means you can automate their review. In a contract
The repository is also where you define what metada-
management system, you receive marked-up versions of
ta to include with your contracts (automated or not).
the proposed contract. Contentious issues and proposed
These data fields are the basis for creating alerts and
changes are handled and managed by sending alerts to
notifications. As this is an ongoing need, we can manage
the people who need to see them. This keeps the legal
contract retention and audit as part of a Legadex man-
team’s involvement to a minimum while still ensuring
aged service.
that everything is checked and that the contract is fully compliant with your internal policies. And for simple, recurring agreements, we can review any comments and look after specific clauses. This way, your legal team only needs to look at high-risk changes.
Obligation Management Most companies do their own obligation management. However, by creating suitable fields, filters and alerts, Legadex can help you to increase and maintain your control over your contracts, prices, renegotiation win-
Approval Flow
dows and so on. We can help identify what metadata
The vast majority of contracts are relatively simple
to include and how to structure the alerts so that the
agreements that require only limited negotiation. This
relevant people receive the alerts they need on time.
means you can automate their review. In a contract management system, you receive marked-up versions of the proposed contract. Contentious issues and proposed changes are handled and managed by sending alerts to the people who need to see them. This keeps the legal
Let’s talk about your needs
team’s involvement to a minimum while still ensuring
For more information, best practices and benchmarks,
that everything is checked and that the contract is fully
contact:
compliant with your internal policies. And for simple, recurring agreements, we can review any comments
Peter Schepens
and look after specific clauses. This way, your legal team
T: +31(0)20-8208396
only needs to look at high-risk changes.
E: pschepens@legadex.com