The business is made up of numerous factors that make it successful, and the contract management is one of the most significant.
The necessity to have an efficient contract management system software has increased exponentially in the current business world where security, compliance, and accuracy are paramount.
If you are looking for a practical and efficient solution, this blog will help you understand how to choose the right contract management system with ease. It also walks you through the key features and best practices to look for before deciding.
Organizations are dealing with a greater number of agreements than ever, and manual processes can no longer keep pace.
According to a study by GlobeNewswire, the contract lifecycle management (CLM) software market was valued at USD 1.72 billion in 2023 and is projected to reach USD 5.10 billion by 2032, growing at a strong CAGR of 12.85% between 2024 and 2032.
This expansion is a clear indication of the rising need to have effective systems that can be used to handle contracts and agreements.
Signs Businesses Need Contract Management System Software
Managing agreements through manual means can be quite expensive, and thus the adoption of software to manage contracts and manage the contract administration process can be a viable option to consider when expanding businesses.
- Handling of contracts manually is more time consuming and expensive
- Teams must have a single location to review deadlines, approvals, and tasks
- It is too laborious to write, read and sign contracts without software
- Managers should have a clear idea of the status of the contract and significant dates
- All agreements must adhere to rules and legal requirements
- The various teams should collaborate on the same contracts
- Contracts should be kept in secure places that are readily available when required
An effective contract management system software assists in time saving and minimizing errors in everyday work.
Benefits of Implementing Contract Management System Software
The use of the software of the contract management solution assists the teams to manage contracts in a more systematic manner. The following are some of the key advantages.
1. Shortens the Time Taken to Complete Contracts
With the contracts being transferred through drafts, contract approval and signatures in a single connected system, teams save time while updating files. The work is conducted in a clear flow, and it contributes to the fact that deals can be processed without unnecessary delays and follow-ups. Contract management system software enables the sales, legal and finance teams to remain on track and seal deals more quickly.
2. Supports Contract Compliance Needs
Contracts usually have legal, financial and operational conditions that must be adhered to during their lifecycle. The connection of all the clauses, obligations and policies to the contract assists the teams to accomplish these requirements. Contract management system software establishes greater control contract compliance needs.
3. Keeps All Contracts in One Easy-to-Access Place
The contract modification and previous versions are kept in one place that anyone can access when required. This eliminates the aspect of having to go through emails, shared drives, or local folders only to locate the appropriate document. Whenever a decision is needed, teams can see the entire contract history very fast.
4. Protects Every Stage of the Contract Process
Access rules and activity records cover each phase of a contract, including drafting and approval and renewal. Only authorized individuals can access sensitive contracts and make changes when needed. Contract management system software will provide managers and legal departments with a clear picture of the flow of every contract.
5. Makes It Easier to Collaborate with Vendors
The same contract can be reviewed and updated by internal teams and vendors without copying and sending numerous copies. This facilitates a collaborative contract management and helps both parties to remain on the current version, without falling behind on the changes. Discussions remain attached to the contract rather than being in emails.
6. Manages High-Volume Contracts at Scale
B2B reviews show that more than 71% of professionals handle many contracts on a regular basis. The centralized contract repository provides the teams with the framework that they require to track the large volumes without losing renewals, approvals, and obligations. Visibility is also high even with the increasing number of agreements.
7. Saves Operational Costs
In automated system of handling contracts, teams have less time on doing manual work like tracking version and sending reminders. Contract management system software saves the work done to coordinate contracts in legal, finance and operations departments. In the long run, this reduces the cost of conducting contract operations.
8. Reduces Risk During Contract Review
The average duration of a human-conducted contract review is 92 minutes, and this can be easily multiplied when a significant amount of contracts is considered. Quick review cycles assist teams to find out risks sooner and continue work without delays. This facilitates the control of legal and commercial contracts.
Industries that Can Benefits from Contract Management Software Systems
Contract management system software is common in any industry where agreements, compliance, and approvals are important. The following are some of the main industries that are the most benefiting.
1. Contract Management of Manufacturing
Manufacturing contract management assists companies to monitor supplier contracts, purchase conditions and delivery times. It enhances the efficiency of the supply chain, minimizes controversy, and makes sure that all the contractual obligations are fulfilled in time.
2. Oil & Gas Contract Management
The oil and gas contract management is necessary to deal with the complicated contracts with suppliers, contractors, and joint ventures. It assists in the management of high-value contracts, compliance, and minimization of operational risks in large-scale projects.
3. Energy Contract Management
Contract management system software enables companies to handle power purchase contracts, vendor contracts, and regulatory contracting. Energy contract management offers enhanced transparency on pricing terms, commitments, and performance of the contract.
4. Healthcare Contract Management
Contract management system software assists hospitals and healthcare providers with vendor agreement management, compliance documents, and service contract management. Healthcare contract management makes sure that all contracts are in accordance with the regulatory standards and minimizes the administrative workload and risks.
5. IT & SaaS Contract Management
IT and SaaS contract management assists businesses in managing service contracts, service level agreements, vendor contracts and subscription based pricing models. A digital system is faster to approve, better tracked and fewer missed deadlines because it is frequently renewed and updated.
6. Contract Management in Real Estate
Management of real estate contracts eases the processes of handling lease agreements, property contracts and renewals. It assists in the keeping of key dates, central management of documents, and minimizing the chances of lost opportunities.
Must-Have Features in Contract Management System Software
A credible contract management system software must provide the necessary tools that ease the drafting process, enhance compliance, and help businesses to handle agreements more effectively and smartly.
1. AI-Powered Intelligence
AI brings clarity and expediency in the process of contract review and analysis. The AI contract management software summarize contracts, patterns of clauses, areas of risk, and assists in quicker contract comprehension. Legal and commercial teams can use teams to quickly find terms, identify gaps in the agreement, and compare differences between agreements.
2. Compliance Management
One of the greatest pressures of legal and operations teams today is compliance. According to Zoho Contracts, 43% of professionals stated compliance and regulatory issues as a big concern, which shows how closely contracts are tied to risk and governance. A modern contract management system software provides organizations with an organized method of monitoring regulatory provisions and audit trails.
3. Automated Approval Workflows
The approval of the contracts is usually based on various departments, decision-makers, and internal policies. According to EY, most organizations 70% have a formal contracting technology strategy, but 99% lack the data and technology to enhance their contracting process. An effective leverage contract automation on implement workflow based on rules, which redirect contracts to appropriate reviewers and monitors process.
4. Contract Repository
A centralized repository of contracts enables all agreements, amendments and supporting documents to reside in a single structured repository. Using a contract management system software, teams can find contracts based on client, date, value, or type of clause in a matter of seconds. This saves time on document search and enables teams to go through past agreements.
5. Obligation Management
According to World Commerce and Contracting, businesses lose as much as 9% of annual revenue due to missed obligations or due to a lack of visibility. A contract management system software is used to track the payment terms, delivery dates, and compliance deadlines. It offers continuous transparency of what needs to be accomplished and assists teams to remain on track with the contract obligation.
6. Clause Library
A clause library provides legal departments with one place where they can find approved language in contracts. A contract management system software stores frequently used clauses, fallback language and region-specific terms in a single location. This helps in maintaining standardized wording of the contracts and makes it simple to reuse, compare and update clauses.
7. Role-Based Security
All contracts should not be available to all people. Role based security enables organizations to manage access by people to view, edit, approve or export contracts. A contract management system software uses permission levels, which are determined by job roles and departments.
8. Redlining
Redlining enables the teams to compare the differences between the versions of the contract in a clear manner. The edits are indicated to enable legal and business users to view what has been changed. In a contract management system software, contract redlining assists in a collaborative review and maintains a record of all the revisions.
9. Renewal Reminders
Missing to get a contract renewal may result in extensions that are not wanted or missed opportunities. The contract management system software monitors contract renewal and sends alerts to allow legal, finance, and operations teams. Contract management system software assists organizations to revise pricing, vendor terms and scope of services prior to any contract creation.
10. Secure Digital Signature
Digital signatures allow contracts to be signed electronically with legal validity. Secure signature tools inside a contract platform record signer identity, time stamps, and document history. This keeps the signing process digital while maintaining strong documentation for audits and compliance.
Best 8 Contract Management System Software
Products | Integration | Free Trial |
CLM 365 | SharePoint, MS Teams, Outlook, MS Copilot, Power BI and Power Automate | Yes (14-day free trial) |
Juro | HubSpot, Salesforce, Slack and Zapier | Connect With Sales Teams |
Ironclad | Zapier, Slack and NetSuite | Yes |
Zoho Contracts | Integrates with Zoho Suites | Yes |
ContractWorks | Salesforce | Yes |
SpotDraft | Google Drive, HubSpot, Salesforce and Jira Comment Sync | Yes |
CobbleStone | ERP systems, NetSuite and Salesforce | Yes |
Icertis | SAP, Ariba and Salesforce | Yes |
Below are eight leading contract management system software platforms that support businesses in handling agreements, reducing manual work, and improving decision-making.
1. CLM 365
CLM 365 is a best contract management system software that is designed with the organizations that are easily integrated within Microsoft ecosystem. It is integrated with SharePoint, Outlook, MS Teams, MS Word and Copilot. It makes Microsoft 365 a contract workspace instead of requiring legal and business users to migrate to a different contract platform. Many users has praised the platform for its extensive features and easy of user in renowned sites like G2. The contract management software is fast to deploy and has powerful, inbuilt security controls that protect contract data throughout its life cycle.
Core Features
- AI powered contract review
- Clause library
- Centralized repository
- Contract compliance management
- Automated approval workflows
- Secure electronic signature
- Version control
- Contract amendment
- Multi-language clause interpretation
- Role-based access control
- Expiry, renewal, and obligation alerts
- Reporting & analytics
What Makes It Stand Out
CLM 365 is built in a unique way that incorporates the contract management into Microsoft 365. The Microsoft contract management provides a convenient and safe process of managing agreements. Its AI-based and automation-driven processes assist in controlling all the phases of the contract life cycle more efficiently and easily.
Ratings
G2: 4.9/5
Microsoft AppSource: 4.9 (79 reviews)
Pricing: CLM 365 helps businesses manage contracts more efficiently, with plans beginning at $29.99 per user.
How to Deploy CLM 365
- Examine the way your contracts are being made, authorized, and kept now to identify any delays or problems
- List the tools that your team uses currently to do contract work
- Activate CLM 365 and integrate it with your Microsoft 365 account to have one contract workspace
- Combine it with Outlook, Teams, SharePoint, Copilot, and Word to work more easily
- Establish approval processes, user access and automatic reminders to keep contracts in motion
- Use easy-to-follow guides and examples to train your team
2. Juro
Juro is a reliable contract management system software that is suitable to fast-moving companies that desire to manage contracts with ease. It eliminates the use of Word files, email attachments and scattered PDFs by offering a single workspace where legal and business teams work on the same document in real time.
Core Features
- Browser-based contract editor
- Real-time collaboration on contracts
- Built-in electronic signatures
- Contract templates with dynamic fields
- Approval workflows
- Audit trails for all edits
- Contract search and filtering
- Automated reminders
- Central contract workspace
What Makes It Stand Out
The greatest advantage of Juro is its entirely web-based process of contract work. Contracts are made, negotiated, approved and signed within one live document, which removes version confusion and email back-and-forth.
Ratings
G2: 4.6
Capterra: 4.8
3. Ironclad
Ironclad is a good contract management system software, targeting legal operations teams in large organizations. It is designed to support intricate contract workflows, compliance needs and large volumes of contracts and maintain business users in the process. Its organised nature enables legal teams to stay in control without hindering the normal business operations.
Core Features
- Legal request intake forms
- Configurable approval flows
- Clause and template management
- Negotiation and redlining tools
- Contract repository
- Compliance tracking
- AI-based data extraction
- Reporting and dashboards
- CRM and ERP integrations
- Secure audit logs
What Makes It Stand Out
Ironclad is built on legal process control. It provides legal departments with a view of all the requests, all the contract phases, and all the compliance mandates without stalling the business.
Ratings
G2: 4.5
Capterra: 4.4
4. Zoho Contracts
Zoho Contracts is secure contract management system software that is integrates well with other Zoho Suites. It connects contracts and sales, finance, and operational tools enabling organizations to operate agreements as a natural extension of end-to-end process. This integration assists teams to minimize manual labour and maintain uniformity of contract data across departments
Core Features
- Contract authoring and templates
- Clause library
- Approval workflows
- Obligation management
- Renewal and expiry tracking
- Contract authoring
- Compliance monitoring
- User permissions
- Contract analytics
- Document storage
- Digital signatures
What Makes It Stand Out
Zoho Contracts is an element of a larger business platform. Contracts are linked directly to sales pipelines, invoices, and customer data, and this makes it perfect in growing companies that would like contracts to be used in the operation of revenue.
Ratings
G2: 4.5
Capterra: 4.4
5. ContractWorks
ContractWorks is built around simplicity and speed. It provides organizations with a secure and easy-to-use platform to store, search, and monitor contracts without complex setup or heavy legal workflows. This contracting software is ideal for teams that want fast access to agreements without needing extensive training.
Core Features
- Central contract repository
- Advanced search and filters
- OCR for scanned documents
- Contract tagging
- Expiry alerts
- Secure document access
- Permission management
- Audit trails
- Reporting tools
- Cloud storage
What Makes It Stand Out
ContractWorks is good at rapid contract finding. Old contracts can be uploaded, scanned and made searchable within a short period even in large volumes.
Ratings
G2: 4.6
Capterra: 4.7
6. SpotDraft
SpotDraft is designed for modern legal teams that need both automation and control. This contract management system software combines legal-grade workflows with business-friendly interfaces, allowing sales, HR, and finance teams to manage contracts for legal departments.
Core Features
- Contract templates
- Clause playbooks
- Negotiation workflows
- AI contract review
- Obligation tracking
- Approval routing
- Contract analytics
- E-signature support
- User access control
- Contract repository
What Makes It Stand Out
SpotDraft is designed to remove friction between legal and business teams. It allows legal teams to set the rules while letting business teams execute contracts faster.
Ratings
G2: 4.5
Capterra: 4.8
7. CobbleStone
CobbleStone is specialized in governance, compliance and long term contracts tracking. It is regularly applied to controlled industries and big businesses where strict control of contracts and obligations is required. The contract management system software assists organizations in being audit ready and minimizing contract risk throughout their lifecycle.
Core Features
- Contract authoring
- Compliance tracking
- Audit management
- Obligation monitoring
- Clause library
- Renewal alerts
- Reporting and dashboards
- Document management
- Role-based security
- Workflow automation
What Makes It Stand Out
CobbleStone is built on risk-driven organizations. It focuses on compliance, audits and long term accountability rather than quick sales processes.
Ratings
G2: 4.8
Capterra: 4.7
8. Icertis
Icertis is a good contract management system software that is enterprise grade and is used by many organizations. It uses high-tech intelligence to derive insights out of deals and track risks, obligations, and contract performance. The contract management platform allows big organizations to make better decisions by transforming the contract data into business data.
Core Features
- AI-powered contract intelligence
- Contract data extraction
- Clause and template management
- Compliance monitoring
- Workflow automation
- Obligation tracking
- Enterprise reporting
- ERP and CRM integrations
- Multi-entity support
- Risk analysis
What Makes It Stand Out
Icertis is aimed at transforming contracts into a strategic data asset. It assists businesses in knowing risks, income, and liabilities of the whole contract portfolio.
Ratings
G2: 4.2
Capterra: 4.3
Tips for Selecting the Right Contract Management System Software
To choose the appropriate contract management system software, it is not only necessary to compare features but also to have a direct impact on the process of contract creation, review, approval, and maintenance within the organization.
1. Start with a Free Trial to Review the System
Starting with free trial is a good option to test the functionality of the platform and decide whether to purchase a full license. It enables teams to check the system to support their contract processes, reporting requirements, and day-to-day use of the system by departments.
- Upload real contracts and test key features
- Search reviews, alerts and approval settings
- Invite legal, finance, and operations users
2. Review How Contracts Progress
Understanding of the flow of a contract throughout its entire lifecycle process assists in determining whether the system is in line with business and legal processes. This comprises of the first request up to approvals, signing and renewals.
- Track drafting, review and approval
- Test recording of changes
- See the way renewals are handled
3. Evaluate Compliance and Security Capabilities
Contracts are sensitive documents that contain legal and financial information and therefore and access control is a paramount need. The system must be able to support regulatory requirements and secure documents and user activity.
- Review the audit trails and access logs
- Permission and role settings of tests
- Check regulatory support features
4. Understand the Number of Contracts to Be Handled
Contract volume has a direct impact on system performance, storage requirements and prices. This assessment of this upfront aids in making a solution which will suit the present and the future needs.
- Look through annual contract volume
- Storage and user check limits
- Evaluate expansion capabilities
5. Confirm Integration
- Link contract information with current system
- Import project records, customer records, and import vendor records
- Reporting and audit data of export contracts
Best Practices to Implement While Managing Contracts
Contract management must be undertaken in a well-organized manner that facilitates the transparency, responsibility, and uniform control of all phases of the contract life cycle.
1. Centralize and Standardize
Centralizing contracts provides one reliable location where all agreements, amendments and supporting documents can be found. This simplifies the process of working with legal, finance and operations teams using the same set of records. There is also uniformity in the language of contracts and this is achieved by standardized templates.
2. Optimize the Workflow
An effective workflow provides a structure to the flow of contracts between request and execution. With established review steps, approval policies and ownership, teams can have a clearer understanding of who is doing what. This facilitates quicker reviews, better accountability and enhanced coordination.
3. Leverage AI and Intelligence
The AI provides a summary to contract that needs to be managed. It can detect important clauses, emphasize on suspicious terms and cluster contracts according to similar terms. This enables legal and business departments to grasp the contract content, assess risks and compare contracts in a short time.
4. Proactive Post-Signature Management
The value of a contract goes on beyond the time of signing. Post signature management is concerned with the monitoring of renewal dates, milestones, price alterations, and service commitments. With scheduled reminders and contract timelines, teams stay aware of upcoming actions and important dates.
5. Risk and Compliance
Contracts should be in line with legal, regulatory and internal policy requirements. Risk and compliance capabilities include audit trails, clause controls and approval records, which demonstrate the way the contract are reviewed. This creates a clear record of decisions and helps organizations maintain regulatory.
6. Fulfill Obligations
All contracts involve duties like payments, deliveries, services and reporting. Monitoring these requirements provides teams with an insight into what should be done and when. This assists in funding, operations, and legal teams to organize their efforts and fulfill the contractual obligations.
7. Regularly Monitor Performance
Tracking the performance of a contract gives an idea of how the agreements can serve the business objectives. Trends can be reviewed by the reports on renewals, vendor performance, revenue, and compliance activity. This information will help to plan better and have a better decisions.
Conclusion
A contract management software has emerged as a practical requirement need to businesses that desire to have improved control over contracts.
The appropriate platform also assists in safeguarding income, enhance the collaboration of the vendors and internal teams.
Get a 14-day free trial to CLM 365 no credit card details required. Get to know the features and how the contract management may work in a smarter and more organized manner.
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Frequently Asked Questions
How does it reduce delays in approvals?
The contract management software system automatically routes contracts to the next reviewer based on predefined workflows. This removes the need for manual sharing, constant follow-ups, or waiting for emails ensuring faster and more seamless approvals.
Can I compare two vendor contracts using contract management system software?
Yes, the contract management system software allows side-by-side comparison of contracts, highlighting differences in pricing, terms, timelines, and obligations. This makes it easier for legal and procurement teams to quickly identify changes and make informed decisions.
Can business teams see contract priority levels?
Yes, Contracts can be categorized based on factors like risk, value, urgency, or overall business impact. This helps teams prioritize critical agreements and take timely action where it matters most
What is the best contract management system software for SMBs?
For SMBs, tools like CLM 365, Zoho Contracts, and Ironclad are great choices. They are easy to use and come with useful features such as automated workflows, approval tracking, and digital signatures so you can manage contracts smoothly without needing a large IT team.
How does CLM 365 reduce legal review time using AI?
CLM 365 uses AI to summarize contracts, identify key clauses, flag missing or risky terms, and surface potential issues. This allows legal teams to focus on critical insights instead of reviewing every line manually, significantly speeding up the review process.
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