When it comes to project management, collaboration and communication are key. And, when it comes to contract management, the same principles apply.

As the cost of technology continues to decline, new tools have emerged that can change the way contracts are drafted, stored, and tracked. But these tools don’t replace professional expertise, they can enhance it.

1. Automation

Managing contracts is a core business function that helps companies meet legal and compliance obligations, realize value, and save time. Automating contract management processes increases the speed and accuracy of these processes, freeing up human resources and allowing employees to focus on higher-level functions that require more complex decision-making skills.

Effective contract management frameworks help to ensure that all parties involved in a deal are aware of their rights and obligations. This ensures that the company’s interests are protected and minimizes risks.

In addition to ensuring compliance, automation can also boost visibility and improve overall contract performance tracking. This can lead to savings, improved efficiency and better procurement decisions.

For example, the use of automation can make it possible to create different types of contracts with a simple click by leveraging templates already containing case-specific stipulations. This eliminates the need to travel a contract from one department to another for verification, proof reading and manual editing.

2. Collaboration

Collaboration is about people working together to achieve shared goals. This isn’t just about software or big groups of people using social media tools, though that can also contribute to collaboration.

It’s about people collaborating to solve problems, create new products and services, or improve existing processes. It’s also about a culture that encourages communication and innovation.

In a business, collaboration is often necessary to get work done quickly and efficiently, with high production values. It can also help teams with various skills and backgrounds to work together in a cohesive way, with each person contributing their unique talents and expertise.

However, in order for collaboration to be effective, it must be cultivated and encouraged throughout the construction industry. This requires clear and consistent leadership from local authorities, large contractors and Government. It also needs a commitment to a collaborative mindset and behaviours, with well-structured contract terms that encourage mutual respect and trust.

3. Analytics

A key factor in effective contract management frameworks is a well-defined process for reviewing, approving and executing contracts. This helps avoid ambiguities in the contract and ensures that all parties involved have a clear understanding of their obligations and expectations.

A properly structured contract should also clearly state the expected timelines, deliverables and payments. This helps establish a foundation of trust and understanding between parties, mitigates risks, and protects both sides in case of any disputes or audits.

In addition, an automated contract management framework can help curb undocumented expenditures and increase spend visibility. Ultimately, it can help increase your company’s bottom line and ensure you achieve your business goals.

4. Security

Using technology to improve contract management is essential for compliance with regulatory and legal requirements. This is particularly important in the technology and software sector.

For example, the adoption of new technologies such as legal tech and CLM solutions can help ensure that your business meets regulations, safeguards compliance and protects your brand from potential harm.

It’s also important to remember that the best contract management frameworks include four key elements: strong communication and collaboration, a well-designed and easily accessible contract repository, efficient contract monitoring and tracking capabilities, and robust contract analytics and reporting systems.

Security is a broad term that refers to the ability of a person, community, nation or system to resist adverse external forces. It can be a concern for any entity and can come in several forms. For instance, a secure environment can deter crime and other harmful activities by making it clear that the people within the area are not to be messed with.