Category: Contract Negotiation
Are you still drafting thousands of contracts manually? In Word? Or storing multiple versions of paper contracts in a filing cabinet? Well, you’re not alone.
Exari recently surveyed 92 Corporate Counsel and compliance professionals about their habits and challenges for contract creation, storage and legal technology. More than 75% reported that they were still creating contracts in Microsoft Word, using some form of “copy and paste” template, while only 1 out of 10 currently use a document generation software to streamline the process. Half of the participants (47%) said they were still using paper filing systems to house corporate contracts. Their top pain points included:
- Slow contract approval processes (59%)
- Little or non-existent insight into risk (39%)
- Missing key milestones (27%)
- Difficulty with internal collaboration (25%)
- Risk of error (23%)
With outdated practices for generating and storing contracts, you’ll lack complete visibility into all of your agreements, increasing your risks such as liability, being underpaid or overcharged and missing key milestones. By implementing an efficient contracting process, you won’t miss a step. Not to mention you’ll be able to pull information during a crisis in minutes, rather than taking hours to dig up and sift through multiple paper copies. Avoid missing renewal rates, reduce the length of sales cycles, streamline negotiations and increase internal collaboration.
Doesn’t that sound better than the ol’ “copy and paste”?
Really? How much is that costing you?
I recently heard a story of a services firm that generated contracts from “passed around” Word templates. At some point, somebody actually read through the contract and realized the entire liabilities and indemnification section had been deleted.
This contract form had been used for 2 years.
I’m not sure why so many people trust Word for drafting their contracts, especially multi-page agreements with complex terms. Sure, everyone thinks it’s easier for drafting and sharing with counter parties, but can you afford the risk? And we’re not talking about a click-through contract for an iPhone app (bet you don’t read those either).
The fact is there are thousands of contracts drafted in Word that are inaccurate, incomplete, the wrong version and probably putting your company at risk. These agreements bind your company for years and are typically only discovered during some important event where value has to be determined, such as an acquisition.
So a Word to the wise; know what is going into your contracts before they’re signed. It could save your company millions.
We take pride in Exari’s reputation for being responsive to the ongoing feedback we get from our clients. One of the newest features of our Intelligent Contract Management software, the Negotiator Ribbon, is the direct result of this input and represents yet another step in our mission to help organizations streamline, manage and track the lifecycle of their contracts.
The Ribbon works in conjunction with Exari’s existing RoundTripping™ functionality, a feature of our Contract Management software designed to streamline contract negotiation by making it easy for users to compare contract versions and analyze the differences between them.