Is it possible to create personalized contracts within the platform?

Yes. The platform allows users to build custom contracts using an intuitive drag-and-drop interface, making the process quick, efficient, and more productive.

Are there ready-to-use templates for different types of contracts?

Yes, the platform has many templates is available for various contract types such as service agreements, NDAs, sales contracts, and more saving time while maintaining consistency.

Can team members work together while creating a contract?

Yes. The platform supports real-time collaboration, enabling users to invite legal team, exchange feedback, and suggest changes directly within the document.

How does the system help maintain legal compliance?

Built-in compliance features help align your contracts with current legal and regulatory standards by identifying potential issues.

Contract Management Solution
| Create, Sign, and Manage Contracts

Contract creation software uses automation to help businesses draft clear, accurate contracts while reducing errors and maintaining consistent language across contracts.

January 1, 2026

7 min read

Legal teams have to deal with large amounts of contracts and deal with numerous revisions and multiple copies of the same document.

Ensuring consistency takes a lot of time and care particularly when a great part of the work is manually performed.

A contract creation software assists legal teams in performing their tasks more efficiently, providing them with clause library, guided drafting, and one location to handle contracts.

Importance of Contract Creation Software

Contract creation software is important in assisting businesses to develop correct and consistent contracts and also saves time and effort that is used in contract writing. These are some of the main considerations to make in understanding its significance.

1. Smooth Agreement Drafting

The contract creation software helps teams to have a structured template and pre-defined clauses. It assists legal departments in preparing contracts in a verified language and format.

Guide contract drafting steps allow the teams to concentrate on important terms and not on document formatting.

All contracts have a similar pattern and thus reviews are easier and predictable.

2. Increased Efficiency and Speed

DocuSign states that the cost of a contract may rise by 40% in case of poor contract management, which is associated with a delay in the closing of the deals.

Contract creation software saves time and effort by providing templates and clauses to choose, this will enable the teams to creation contracts within a shorter time.

The quicker drafting assists the businesses to minimize the idle time on the sales and legal cycle.

3. Better Collaboration

The legal, sales, procurement, and finance teams contribute to creating contracts, and they do not have a common system.

Contract creation software enables teams to operate in one document workspace, whereby this stakeholders manage them in one location.

This ensures collaborative contract management that minimizes the communication gaps when creating contracts.

4. Managing Obligations with Ease

Contracts usually involve deliverables, renewal dates, payment terms and responsibilities. Manually tracking such details may be time-consuming and hard to track.

Contract creation software documents obligations to the contract record and teams can view obligations without having to search files.

This assists companies to remain conscious of the current obligations in every contract.

5. Enhanced Visibility and Control

Contracts that are stored in emails and folders are difficult to find when required. According to DocuSign, 42% of the participants say that they cannot find a particular contract they need.

It stores all agreements in a central repository, and its document tracking capabilities enable teams to find contracts fast.

Access, versions and records of contracts are more controlled by legal teams.

Signs that Your Business Needs Contract Creation Software

There are some indications that your company might need contract creation software. The following are the main considerations to be made when evaluating your contract processes.

1. Slow Drafting Process

In most cases, many teams take a lot of time to prepare every contract, and this may delay the general business activities.

This is not only a factor that impacts productivity but also makes it difficult to meet deadlines effectively.

The more organized approach to creation helps organizations to keep the pace and save time on repetitive activities.

2. Lack of Contract Templates

In the absence of pre-made templates, teams can be forced to create a new contract each time, which is an additional burden.

The process may cause discrepancies in documents and waste of time, which can be utilized in other areas.

Professional contracts can be generated within a short period of time by using a industry relevant clauses of templates and ensuring the same content is used across the board.

3. Version Drift

Contracts typically undergo several editions, and it is hard to manually monitor the changes.

The process of working on various contract version may lead to misalignment and overlapping of work across teams.

A contract creation software that is structured will ensure that all people are working on the latest document, which enhances collaboration.

4. Layout Inconsistency

Contracts may use different format styles that may render the documents unprofessional and difficult to read.

Teams can also take more time to make layouts to fit internal standards, which slows down the entire process.

A best contract creation software approach to creating a contract will make sure that each one of them is clean, polished, and consistent.

5. Centralized Storage

Scattered contract files in folders, emails, or devices can consume a significant amount of time to locate the appropriate version.

Such disorganization may interfere with the working process and postpone important approvals in the team.

All contracts are stored in a centralized location and therefore it is easy and effective to share, collaborate and retrieve them.

Key Elements of Contract Creation

Here are some key elements of contract creation, covering the process from assigning the proper counterparty to drafting, reviewing, and approving the agreement.

Requesting a Contract
The contract creation process starts with a request, that determines the necessity of an agreement and collects all the necessary information. At this point, the right counterparty is appointed to address contractual obligations. Gathering all the information and conveying the requirements is useful in steering the drafting process.

Drafting the Contract
Drafting is a process that entails the transformation of the information collected into formal language that spells out the rights and obligations of all parties. The contract begins with the identification of the parties, the counterparty assigned, and contract creation software highlights significant clauses. Close drafting will make sure that the obligations are well defined and workable.

Review of the Contract
The contract is drafted and then carefully reviewed. The document is reviewed by internal teams, including legal, finance, or management, to ensure that it represents the desired agreement. The designated counterparty analyses the terms, and AI assists in summarizing contracts, omissions, and possible risks. The step will make sure that there is alignment of expectations.

Approval of the Contract
The final step is approval. Once the changes are, the contract is officially approved with the help of the signatures of the specific parties. The confirmation is that the parties including the counterparty are aware of their responsibilities and the agreement is prepared to be signed. The approved contract must be documented and stored in a proper manner that gives the future compliance or audits a reference point.

Features of Contract Creation Software

The system offers a wide range of features that make contract creation organized, efficient, and easier to manage. Each feature supports different stages of the contract lifecycle, from drafting to review and approval, while keeping all records secure and accessible.

1. Clause Library

The contract creation software provides a library of standardized, pre-approved clauses that can be re-used in a number of contracts.

This will enable users to add legal language very fast without having to write it every time, which is a saving of time and ensures uniformity.

The contract clauses may be modified to suit the particular agreements so that each contract will address the needs of each situation.

2. Contract Templates

Contract Templates offer pre-built templates of all types of agreements, such as vendor contracts, service agreements, and NDAs.

Users will be able to select the template that will suit their needs and make certain changes to align with the terms of the particular deal.

Templates offer a systematic starting point, eliminating the possibility of omitting important sections or clauses and save time to teams.

3. Contract Creation

The contract creation software enables teams to create agreements either by starting with blank agreements or by improving on the existing templates.

The system allows users to add, delete, or amend contracts, sections, and terms directly in the system to record obligations clearly.

It allows simple and complex contracts and ensures flexibility without losing structure and accuracy in agreements.

4. AI-Powered System

The AI-based contract lifecycle management helps to review the language of the contract, highlight possible problems, and propose solutions.

It is able to alert missing clauses, inconsistent terms or language that can be risky and allow teams to deal with them early.

Although AI is used to give direction and accelerate the process, human control is necessary to make sure that the contracts are legally correct and in line.

5. Approval Workflows

Approval workflows are used to direct contracts in a systematic review and contract approval process.

Research indicates that 40% of a contract may be wasted because of ineffective management procedures, which underscores the need to have the right workflows.

Contracts are checked and passed through the relevant stakeholders in a systematic way with contract creation software.

6. Contract Authoring

Contract authoring allows users to draft elaborate contracts on the platform.

It is possible to arrange clauses, terms, and sections in a logical way that will assist in defining the responsibilities, deliverables, and timelines.

This will enable the teams to generate contracts which are thorough, simple to navigate, and prepared to be reviewed or implemented.

7. Contract Repository

All agreements are stored in a centralized Contract Repository which is a secure and searchable location.

Research conducted by EY revealed that 90% of contracting professionals struggle to find contracts effectively.

The repository enables users to retrieve previous contracts within a short period of time, monitor changes, and have an audit trail.

8. Role-Based Security

Role-based security controls are the access to contracts according to the duties of every user.

Specific agreements can only be viewed and edited by authorized staff, keeping sensitive contract secure.

Roles can be customized to grant permissions, which enables teams to work together without jeopardizing contract access.

How Contract Creation Works in CLM 365

Creating and managing contracts can be complex, but CLM 365 simplifies the process by guiding legal teams through each step while keeping all details organized and easy to access.

Step 1: Send a Contract Request
The contract creation can be initiated by the user in Outlook by sending a request. This is requested within the CLM 365 application, and all the activities are stored in one location and contracts are tracked easily.

Step 2: Upload the Document
Once the request has been received, the contract document may be uploaded to the CLM 365 portal. All documents can be easily accessed and managed in this central storage without having to search through different folders.

Step 3: Enter Contract Details
The contract creation software allows users to choose the necessary information like the title of the contract, the type of the contract, the start date, the end date, the number of years, and the owner of the contract.

Step 4: AI-Powered Information Extraction
CLM 365 facilities contract summary and retrieve the most important information about the uploaded contract, including start and end dates. This saves on manual labor and enables the teams to concentrate on more strategic activities.

Step 5: Add Parties and Remarks
Counterparty information can then be added to the teams, an owner assigned and any remarks or notes added. This makes sure that all the stakeholders are identified and all the relevant information is recorded in the contract record.

Step 6: Review and Manage Contracts
Once the fields are done, contracts are now prepared to be reviewed and managed. Teams can follow deadlines, observe obligations and have complete visibility of the entire contract lifecycle, starting with its creation and ending with its execution.

Benefits of Contract Creation Software

Contract creation software brings a wide range of advantages to your business, here are some key benefits to consider.

1. Faster Contract Development
The contract creation software facilitates the process of drafting by offering pre-approved clauses and templates that can be used.

Users do not have to create each contract separately, which saves time and eliminates repetitive work.

This enables the businesses to react fast to the clients and partners and projects can proceed without any unnecessary delays.

2. Reduced Risk
The software assists in detecting absent clauses, inconsistent terms, and possible risk areas prior to the signing of contracts.

Through the systematic review of contracts, it brings out areas that might need to be addressed or explained further.

The identification of the problems at the early stage reduces the chances of legal or operational complications and enhances the overall quality of agreements.

3. Better Collaboration
The teams can work together in the contract creation software, sharing drafts and making contributions in a secure and controlled environment.

Contracts can be reviewed by stakeholders in the legal, finance, and management divisions without using email chains and individual documents.

This keeps everyone updated, enhances focus, and enables teams to respond to questions or suggestions effectively.

4. Organized Storage
A central repository stores all contracts in one secure location, making it easy to access and manage documents.

Users can search for agreements, track updates, and retrieve contracts for audits or compliance purposes.

According to research by EY, 90% of contracting professionals struggle to locate contracts efficiently, and a repository solves this challenge by keeping all documents structured and easy to find.

5. Clear Approval Process
Contracts are taken through the right channels by approval workflows taking them through the right review and authorization procedures.

Research indicates that inefficient management processes may result in the loss of up to 40 percent of the value of a contract.

In establishing a clear approval route, organizations save on time, accountability, and value of each agreement.

6. Time and Cost Savings
Contract creation software saves time and money by minimizing manual work, repetitive drafting and avoidable delays.

Teams also have the ability to work on strategic priorities and not on document management, which enhances productivity.

The reduction of contract risk, elimination of errors, and the necessity to conduct a lot of follow-up also result in cost savings.

7. Enhanced Security
Role-based access restricts access to sensitive information by authorized users who can only view or edit contracts.

The permissions may be configured based on the role of each user, and confidential data will be safe, and collaboration will be possible where necessary.

This aspect in contract creation software minimizes the chances of unauthorized modifications and gives more control over the access of key agreements.

8. Improved Reporting and Insights
Contract creation software have reporting features that give an analysis of contract activity including pending approvals, expirations, or renewals.

The management is able to keep track of the performance of the contracts and make decisions based on precise data.

This visibility enables organizations to be proactive, plan and optimize the use of contracts within the departments.

Best Practices to Implement During the Process

Adhering to the correct procedures when developing the contract assists teams to operate more effectively and come up with well-organized contracts.

1. Use Standardized Templates
The establishment of a uniform base of all contracts assists teams in working more quickly. A properly designed template library also saves duplication of work and helps in the internal cooperation.

Create templates of regularly used agreements
Add conventions and formatting to minimize manual work
Revise and renew templates according to the existing business practice

2. Define Team Roles
The role clarification in the contract creation process helps teams to work with clarity and prevent delays. Once it becomes clear to everyone what they should do, the contract process will be more structured and predictable.

Delegate the responsibility of drafting, reviewing and approving to individuals
Write down duties in a way that the team can be able to follow
Reassign tasks to fit team or workload alterations

3. Track Contract Versions
Contracts frequently go through several editions and a well-organized process can assist teams to remain in line with the drafting process. The version tracking is also clear, which contributes to improved contract review process.

Indicate the date and revision of each version of the contract
Store older versions in a single convenient place to compare
Keep a version log to keep track of changes and keep things straight

4. Maintain Layout Consistency
An attractive contract appears professional and is more readable and comprehensible by all parties. Regular formatting also conserves time that would be used in manipulating layouts.

Normalize headings, spacing and text formats of all files
Make numbered clauses so as to be easily referred to and navigated
Arrange tables, signature areas and attachments in a similar manner

5. Centralize Document Storage
Having all the files related to a contract in a single place enables the teams to retrieve the information. Better tracking and collaboration is also supported by a central system.

Keep all drafts and final copies in an encrypted shared drive
Sort documents by type, client or project to be accessed easily
Role-based set access permissions and sensitivity of documents

6. Assign Right Counterparty
The process of matching each contract with the relevant counterparty assists in ensuring that there is accuracy. Effective delegation also helps in the easier coordination of teams and partners.

Confirm the right counterparty prior to the drafting
Store updated information of all counterparties in a common directory
Check the information at the stage of review

7. Provide Proper Remarks
Inclusion of clear and meaningful comments assists teams to have context, during the process of creating the contract. Positive remarks will lead the reviewer and save time on explaining minor details.

Include comments that describe modifications or special circumstances
Apply formatting of the comments
Be brief in remarks so that the reviewers can be fast and precise

How CLM 365 Helps Businesses Manage Contracts

CLM 365 helps businesses handle their contracts more effectively by operating within the Microsoft ecosystem. The platform is integrated with MS Teams, Outlook, SharePoint, MS Word, and MS Copilot.

Its AI-driven features and smart automation support legal teams in creating, reviewing, and managing contracts with greater ease.

Its AI-based capabilities and intelligent automation assist legal teams to develop, revise, and handle contracts with even more simplicity.

The solution is now available on the Microsoft Azure Marketplace.

Conclusion

An effective contract creation process assists companies in functioning more effectively and being consistent in all contracts. By using a best contract creation software and the help of a contemporary contract tool, the teams will be able to write, revise, and handle documents more clearly.

Discover how CLM 365 can support your business and bring greater clarity to your contract workflow today.