Best Contract Management Application for 2025

October 30, 2025

5 min read

The most successful organizations understand that managing contracts isn’t something to leave to chance. Every agreement represents an opportunity and when handled efficiently, it can drive growth, minimize risk, and streamline operations across departments.

Forward-thinking businesses use contract management application to bring structure and control to their contract lifecycle. From creation to approval and renewal, these systems ensure accuracy, compliance, and visibility at every stage.

Interestingly, a recent study by ALM and Bloomberg Law found that over 40% of corporate counsel spend at least half of their workday managing contract-related tasks. That’s a significant amount of time that could otherwise be directed toward strategic initiatives.

By implementing a robust contract management application, organizations can centralize contract data, automate workflows, and avoid administrative challenges.

In this blog, we’ll explore the key features, advantages, and best practices for selecting a contract management system that enhances productivity and aligns with your business goals.

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Importance of Contract Management Application

According to a study by Deloitte, inefficient contract management processes can cause organizations to lose up to 8.6% of their total contract value. This shows the importance of the systema and below are some key reasons why implementing a contract lifecycle management solution is important for modern organizations.

1. Centralized Contract Oversight

In many companies, contracts are stored in different folders, emails, or even physical files, leading to version mismatches and missed updates.

Having a centralized contract management application ensures every agreement from vendor to client is accessible in one unified platform.

This centralization enhances transparency, reduces duplication, and allows teams to retrieve information instantly, fostering collaborative contract management between each teams.

2. Minimizing Manual Errors and Delays

When contracts are processed manually, the risks of human error, missed deadlines, or overlooked renewals are high. A single misplaced clause or missed approval can create costly setbacks.

A contract management application automates repetitive tasks such as approvals, reminders, and contract tracking, ensuring every document progresses smoothly through the workflow.

This not only saves time but also brings precision and accountability to each step of the process.

3. Strengthening Compliance and Accountability

A study as per PwC says that’s, Around 40% of business and risk leaders surveyed reported that their organizations have strengthened their risk management practices over the past year, leading to more consistent and effective compliance with regulatory requirements.

A contract management application helps organizations maintain complete compliance by storing all contracts with secure access controls, version histories, and audit trails.

It provides clear visibility into who approved what and when making compliance tracking effortless and reducing the risk of legal disputes.

Moreover, it builds a culture of accountability within teams, ensuring that every stakeholder adheres to established standards and timelines.

4. Data-Driven Decision Making

Contracts hold valuable business insights that often go unused in manual systems. A contract management application allows teams to extract and analyze contracts such as approval timelines, negotiation trends, and contract value distribution.

This data-driven visibility empowers leaders to identify process gaps, negotiate better terms, and make informed strategic decisions that contribute directly to business performance.

By turning contract data into actionable intelligence, organizations can forecast risks, uncover opportunities, and continuously optimize their contracting strategy.

5. Supporting Scalable Growth

As a business expands, so does the number of contracts it manages with vendors, clients, partners, and employees. Relying on manual tracking at this stage can quickly become overwhelming.

A contract management application scales with the organization, allowing thousands of contracts to be handled efficiently, without losing control or accuracy.

It ensures business continuity, consistency, and reliability even as operational demands grow.

How Does Contract Management Application Works

A best contract management application helps businesses handle every step of the contract process in a clear and organized way. Here’s how each stage works:

1. Contract Creation

The process begins with creating a new contract. Users can start with ready-made templates or build custom contracts from scratch.

These templates include pre-set sections for important details such as names, terms, timelines, and payment information.

This helps teams create accurate contracts faster while keeping a consistent format across all documents.

2. Contract Routing

Once the draft is prepared, it is routed to the concerned teams or individuals for input.

The contract management application allows users to compare different versions of a contract, highlight changes, and make quick revisions without losing track of previous edits.

This feature keeps a clear record of who made changes and when, making the review process more transparent and accountable.

3. Contract Review

During the contract review process, AI assists by summarizing legal clauses and suggesting alternative options when needed.

On average, professionals in well-established contract management teams like those in enterprise legal departments spend around 92 minutes reviewing a single contract.

This saves time for legal teams and helps identify potential risks or unclear terms early in the process.

It also helps reviewers focus on key points instead of reading lengthy sections line by line.

4. Approval

The CLM 365 contract management application provides a multi-level approval system, allowing contracts to go through several layers of authorization before final approval.

This structured contract approval process gives every department legal, finance, and operations an opportunity to review and approve the document according to company policy.

It also helps identify potential issues early, preventing delays or misunderstandings later in the process.

5. Contract Negotiation

Once the approval stage is complete, both parties can negotiate terms directly within the system. The contract management application keeps a record of all proposed changes, making it easier to compare offers and finalize fair terms.

A good contract negotiation workflow helps build clarity between both sides while keeping the negotiation history safe for future reference.

It also allows teams to track responses and timelines, ensuring that negotiations stay organized and transparent throughout the process.

6. Contract Changes

If any changes are required during the contract handling, they can be updated within the system. The contract management application maintains a record of all modifications and the users who made them.

This contract change management teams track contract evolution and refer back to earlier versions whenever necessary.

It also provides a clear history of updates, making it easier to resolve disputes or answer questions about previous terms.

7. Signing

Contracts can be signed electronically using secure electronic signatures or uploaded after manual signing.

Once the signing is complete, the contract is automatically stored in the system along with detailed records of dates and signatures.

This not only makes retrieving documents faster and easier but also helps maintain a reliable and organized digital archive for future reference. Using electronic signatures adds convenience while keeping the process secure and professionally documented.

8. Reporting and Analytics

The contract management application provides built-in reporting tools that display important data such as contract status, approval timelines, and renewal dates.

These contract analytics features helps legal teams understand contract value and make data-based decisions for future agreements.

Over time, these insights contribute to better contract performance and improved operational control.

Key Features of Contract Management Application

CLM 365s contract management application is designed to streamline the entire contract lifecycle. Here are some important feature that helps businesses enhance the agreement management process.

1) AI-Powered Contract Assistance

As per Deloitte research, 79% of respondents believe that Generative AI will have a moderate to significant long-term impact on the way legal work is conducted.

This stats shows the importance of acquiring contract management application powered by AI. The AI assistant helps users highlight critical clauses, suggest improvements, and detect potential gaps, helping teams create stronger, more effective contracts in less time.

With AI support, the contract summarizing becomes easier with AI and teams can focus on high-value decisions rather than manual tasks.

2) Contract Compliance Management

Monitor obligations, deadlines, and milestones effectively. The system provides notifications and reminders for key dates, helping teams stay on top of contract requirements.

This proactive tracking ensures that commitments are met, and important actions are never missed.

Teams can view contract compliance status at a glance, helping them plan and manage contracts efficiently.

3) Easy Contract Drafting

Create contracts quickly and accurately directly from MS Teams or Outlook using intuitive templates or fully customizable formats.

The contract management application helps you structure contracts clearly using contract clause library.

Whether it is creating a simple agreement or a detailed commercial contract, these contract drafting feature make the process seamless, reducing delays and boosting productivity all without leaving your favourite collaboration and email platforms.

4) Contract Redlining

Simplify the process of reviewing and editing with contract redlining software.

Every change, addition, or removal is clearly highlighted, making it easy for all parties to follow updates during negotiations.

Teams can provide comments directly in the document, compare versions side by side, and maintain clarity on what has been modified, improving collaboration and speeding up the negotiation cycle.

5) Negotiate Better

Engage stakeholders effectively within the platform. The contract negotiation allow teams to share drafts, provide feedback, and propose changes, all in one place.

This feature helps maintain clear communication, reduces delays, and supports a more productive negotiation process.

Contracts move forward faster because everyone can participate without the need for external emails or scattered documents.

Recommended Read: Key Contract Negotiation Strategies to Implement

6) Integration with Existing Systems

The CLM 365 contract management application seamlessly integrates with like SharePoint, MS Teams, Outlook, Power BI, and MS Copilot.

This ensures smooth data flow across platforms, enabling users to create, share, track, and analyse contracts without switching between multiple applications.

With unified access and real-time collaboration, teams can work more efficiently and make informed decisions directly within their existing Microsoft ecosystem.

7) Multi-Level Approval

Manage approvals efficiently through structured workflows. Contracts can be routed to multiple reviewers or managers, each with their own level of responsibility.

Approvers can review, add comments, and authorize contracts at their stage, ensuring that every contract meets organizational requirements.

This organized process enhances transparency and provides a clear contract audit trail for compliance and accountability.

8) Contract Routing

Move contracts through the organization effortlessly. The routing feature automatically sends contracts to the right person or department at the correct stage.

This ensures that contracts follow a logical path from creation to approval, reducing challenges and keeping teams aligned on priorities.

This seamless workflow accelerates turnaround time and empowers teams to focus on strategic tasks instead of manual follow-ups.

9) Contract Amendment

Update contracts after they have been approved while keeping track of all changes. Each contract amendment is logged and stored, making it easy to reference previous versions or review historical modifications.

This feature allows teams to adapt agreements over time while maintaining clarity and accessibility of information.

With a transparent audit trail and version comparison, it enhances accountability and ensures every stakeholder stays informed about the latest contract updates.

10) Version Control

Keep all versions of a contract in one organized location with robust contract version control. Easily compare previous versions, track changes, and restore earlier drafts whenever needed.

This ensures complete visibility of the contract’s evolution and provides a reliable record for future reference, audits, or reviews.

With centralized control and instant access, teams can collaborate confidently, knowing they’re always working on the most accurate and up-to-date contract version.

11) Centralized Contract Repository

Store all contracts in a single, secure location for easy access and efficient management.

With a centralized contract repository, you can organize contracts by client, type, date, or custom tags, making it effortless to search, filter, and retrieve documents when needed.

A centralized contract repository system saves time, enhances visibility, and ensures that every authorized team member can access the right contract information instantly eliminating confusion and improving overall productivity.

12) Electronic Signature

Execute contracts digitally with secure and compliant electronic signatures. This feature simplifies contract signing by allowing all parties to sign agreements anytime, anywhere removing the need for printing, scanning, or mailing documents.

Electronic signatures make contract completion faster, reduce delays, and keep the entire process safe and convenient.

By making contract signing simple and quick, businesses can close deals faster and improve the overall experience for everyone involved.

Benefits of Contract Management Application

Managing contracts manually can be time-consuming and risky, but a contract management application helps businesses handle agreements efficiently, reduce risks, and maximize opportunities.

1) More Time for Strategic Works

Around 76% of businesses rely on automation to streamline their everyday workflows, helping them complete routine tasks more quickly and maintain consistency across processes.

With contract management automation, processes like tracking deadlines, searching for documents, and coordinating approvals are handled quickly and accurately.

This allows your team to focus on strategic initiatives that drive business growth. Whether it’s negotiating better deals, planning new projects, or strengthening client relationships, the application frees up valuable time so your staff can concentrate on what truly matters.

2) Fewer Missed Opportunities

Important dates, contract renewals, and obligations can easily get lost without a proper system.

A contract management application keeps all contracts organized and accessible, making it easier to stay on top of critical timelines.

By having a clear overview of upcoming deadlines and contractual obligations, your business can act promptly renew agreements.

3) Greater Revenue Protection

Revenue can easily be affected if contracts are not properly managed. A contract management application tracks payment terms, billing schedules, and any penalties, helping your business avoid missed payments or costly mistakes.

By keeping accurate records and sending timely reminders, the application protects your income, reduces the chance of disputes, and maintains financial stability.

This ensures that your revenue remains secure, predictable, and contributes to steady business growth.

4) Boosted Team Productivity

Teams often waste hours searching for contracts, waiting for approvals, or updating documents manually. A contract management application centralizes all contracts, approvals, and updates in one easy-to-access platform.

This means teams can complete tasks faster, coordinate more effectively, and focus on high-value activities.

With less time spent on administrative work, productivity naturally improves across departments.

5) Higher Client and Partner Trust

Managing contracts professionally builds confidence with clients and business partners. A contract management application helps your business respond quickly to requests, meet deadlines, and maintain clear, consistent communication.

Clients and partners see that you handle agreements carefully and reliably, strengthening vendor relationships and encouraging repeat business.

Strong trust in your processes can also lead to better negotiation terms and long-lasting partnerships.

6) Reduced Legal & Financial Risks

A contract management application helps businesses stay on top of legal and financial obligations with ease.

A good system helps manage contract risks and strengthens your company’s reputation and provides a solid foundation for growth.

With clear visibility into all contracts, teams can make informed decisions quickly and confidently. It also enables businesses to identify potential issues early and act proactively to protect their interests.

7) Empowered and Efficient Legal Teams

Legal teams can focus on their core strengths reviewing, advising, and guiding important decisions while routine administrative tasks are simplified.

A contract management application manages version tracking, amendments, and approvals, helping teams handle a higher volume of contracts with ease.

This enables legal professionals to provide stronger strategic support, contribute to better business outcomes, and work more efficiently across all agreements.

8) Better Decision-Making with Clear Insights

A contract management application stores all contract information in one place and provides insights into contract performance, trends, and key metrics.

With this visibility, business leaders can make informed decisions, identify potential risks, and spot opportunities for improvement.

For example, you can analyse which types of contracts bring the most value, plan resource allocation, or forecast renewal outcomes more accurately.

Key Industries Using Contract Management Applications

Contract management applications are used by a wide range of industries and sectors to organize, track, and manage contracts efficiently. Here are some of the key industries benefiting from contract management applications:

1) Legal Firms

Legal firms deal with a huge volume of contracts, client agreements, and case-related documents.

A good contract management software help legal teams keep all their contracts in one digital place, making it quick to find specific agreements whenever needed.

They also allow law firms to monitor important dates, such as contract renewals or court deadlines, helping lawyers focus on serving their clients effectively and improving overall productivity.

2) Banking and Finance

Banks, investment firms, and financial institutions handle a variety of contracts, including loan agreements, investment deals, and partnership contracts.

Contract management applications assist them in tracking deadlines, approvals, and changes to agreements.

This reduces the chances of missing key dates and helps financial organizations operate smoothly while maintaining strong relationships with their clients and partners.

3) Healthcare

Hospitals, clinics, insurance providers, and other healthcare organizations manage numerous contracts for medical equipment, pharmaceuticals, patient services, and insurance coverage.

Contract management applications help healthcare providers keep these agreements organized, monitor expiry dates, and track compliance requirements.
This system makes it easier for healthcare teams to focus on patient care rather than getting caught up in contract details.

4) Real Estate

Real estate companies handle a variety of agreements, including property sales, leases, rentals, and vendor contracts.

With contract management applications, they can store all contracts in a central location, track important dates like lease renewals or property transfers, and monitor payment schedules.

This reduces administrative work and allows real estate professionals to concentrate on growing their business and serving their clients.

5) Manufacturing

Manufacturing companies work with multiple suppliers, distributors, and clients, all of whom have different contract terms and agreements.

A reliable contract management help manufacturers monitor pricing agreements, delivery schedules, and supplier commitments.

This ensures that production processes run more smoothly, relationships with partners remain strong, and deadlines are met without unnecessary delays.

6) Utility Services

Utility companies, including electricity, water, and gas providers, manage contracts with service vendors, regulatory bodies, and customers.

Contract management applications make it easier to track contract obligations, deadlines, and compliance requirements.

This improves utility contract management maintains consistent service quality and meet regulatory expectations, while reducing the time spent on manual contract tracking.

7) Supply Chain and Logistics

Companies in supply chain and logistics work with multiple vendors, transport partners, and service providers.

Contract management application allow them to keep a record of shipping agreements, delivery terms, and payment schedules.

By having all supply chain contracts organized in one place, supply chain teams can respond quickly to changes, prevent delays, and strengthen their coordination with partners.

8) Oil and Gas

The oil and gas sector deals with highly complex contracts covering extraction, transportation, equipment supply, and joint ventures.

Contract management application help oil and gas companies organize agreements, monitor compliance, and track deadlines for multiple contracts at once.

This ensures smoother operations, better coordination between teams, and a clear overview of all active agreements.

Best Practices to Implement Contract Management Application

Implementing a contract management application effectively can help organizations manage agreements, deadlines, and approvals more efficiently. Following these best practices makes the system easier to use and maximizes its benefits.

1) Identify if the System Uses AI or Automation
Understanding whether the system uses AI or automation helps decide how tasks and processes can be managed. It also helps to use the system’s features in the most productive way.

Check if the system can automatically extract contract details like dates, parties, or amounts.

Identify which tasks can be automated, such as sending reminders or generating reports.

Compare the AI or automation features with the organization’s specific needs to avoid underuse or overcomplication.

Recommended Read: Simplify Contract lifecycle Management with AI

2) Map Contract Lifecycle Stages
Knowing the stages of a contract lifecycle management from creation to completion is important for proper management. Mapping these stages helps track progress and responsibilities.

List all steps a contract goes through, from drafting and review to approval and renewal.

Identify who is responsible for each stage and what actions are required.

Highlight stages that may take longer or need extra attention to prevent delays.

3) Consolidate Contract Storage

Keeping all contracts in one place makes it easier to find and manage agreements. Consolidated storage also reduces the risk of lost or misplaced contracts.

Gather all existing contracts from different teams or locations into a single system.

Organize contracts by type, date, or department to make searching faster.

Set rules for storing new contracts to keep the system consistent over time.

4) Define Approval Roles Clearly

Defining approval roles ensures a smooth and efficient contract process. When everyone knows exactly who is responsible for approvals and ensure a collaborative contract management process.

Assign approval responsibilities for each type of contract and stage.

Decide the order of approvals if multiple people are involved.

Communicate roles and responsibilities to all team members using the system.

5) Set Up Alerts for Critical Dates
Alerts help track important deadlines like renewals, expirations, or payments. Timely notifications reduce missed opportunities and contract lapses.

Identify key dates for each contract, including start, renewal, and end dates.

Configure alerts in the system to notify relevant teams ahead of time.

Adjust alert timing based on the importance of each contract milestone.

6) Provide Role-Specific Training

Give your team role-based training that helps them use the system effectively for their daily tasks. Focus on how each role can leverage key features to review, approve, or track contracts easily.

Conduct short, role-specific training sessions that cover essential functions.
Include simple practice exercises to help users get comfortable with the system.
Offer continuous support through FAQs, quick guides, or a helpdesk for any follow-up questions.

7) Review and Refine After Launch
After launching the system, reviewing its performance and making improvements keeps it effective. Refining processes ensures the application meets evolving needs.

Collect feedback from users about difficulties, delays, or missing features.

Check system reports to identify contracts that may not be tracked properly.

Make small adjustments regularly to improve efficiency and usability over time.

How to Deploy CLM 365 Into Your Existing Workflow

Integrating CLM 365 into existing business processes is simple and straightforward. The following points outline how to get started.

Analyse the current contract lifecycle to spot slow points or challenges in the process.

List all existing tools used for drafting, approvals, and storage to see how CLM 365 can fit in.

Enable CLM 365 and connect it with Microsoft 365 to access all integrated features.

Link the system with Outlook, Teams, SharePoint, MS Copilot, and the Word plugin for easy contract management within familiar apps.

Set up approval workflows, assign role-based access, and activate automatic notifications for key contract dates.

Train the team using hands-on examples and simple guides to help them adapt quickly.

Monitor system performance, measure improvements in efficiency, and refine workflows as needed.

Tip: CLM 365’s AI agent can automatically review contracts, highlight critical risks, obligations, and key clauses, reducing the need to read each contract manually.

Conclusion

A contract management application helps businesses save time, reduce errors, and improve compliance by streamlining every step of the contract lifecycle from creation to approval and renewal. With the right tool in place, your team can stay organized, collaborate better, and make smarter decisions without manual effort.

Start simplifying your contract process today with CLM 365. Get your 14-day free trial. No credit card details required!