Contract management is challenging. However, it is an incredibly\nimportant practice that can cost your company a lot of money if not properly\nhandled.\n\n\n\nOrganizations often fall into the same traps in their contract\nmanagement practices. These mistakes can cost organizations hundreds of\nthousands of dollars in waste, missed opportunities, or accidental breaches of\ncontract. \n\n\n\nUsing an efficient and streamlined contract management system can help\nyou avoid these traps and save you money.\n\n\n\n1. Poor\nOrganization\n\n\n\nPoor organization practices make it difficult to find contracts when\nneeded and can have a devastating impact on your workflow and efficiency. \n\n\n\nIn order to avoid this, you need to establish consistent and effective\norganization procedures. These procedures should include:\n\n\n\nEstablishing standard naming conventionsTagging contract files with relevant informationMaintaining contract metadataEnsuring that all contracts are in the same file\nformat\n\n\n\nYou need an organizational system that not only makes it easy for you to\nfind the right contract when you are looking for it, but one that will also remind\nyou of specific contract related deadlines and dates. \n\n\n\nA manual contract management process is simply inadequate to stay\ncompetitive in today\u2019s high-speed, competitive environment. \n\n\n\n2. Inconsistency\nand Misunderstanding\n\n\n\nInconsistency and misunderstanding are typically caused by poor drafting\npractices and a lack of a strong system for collaboration. \n\n\n\nOften organizations will use an old contract and search and replace\nterms to use it for another party. This can lead to typos and mistakes. The\nbest practice is to start with a clean template. This will save time in\ndrafting and avoid simple, but costly, errors that arise when using an old\ncontract.\n\n\n\nInconsistencies can also creep into the contract drafting process when\ndifferent people in the same organization are confused by several different\nversions of the same document. \n\n\n\nWith a contract management system, you can easily create consistent\ncontracts with templates that make it easier for employees without extensive\nlegal knowledge to understand the purpose of the contracts. You can also efficiently\nmanage different versions of the contract so that everyone is always working on\nthe most up to date version of the document. \n\n\n\n Increase visibility by centralizing all of your contracts in a single, secure database that can be accessed from anywhere, on any device, at any time. Get Your Free Trial Now!\n\n\n\n3. Communication\nGaps and Delays\n\n\n\nGaps in communication between those that are involved in the drafting\nand implementation of contracts is a common mistake made by organizations.\nThese communication gaps harm productivity and cause long delays in contract\nexecution. \n\n\n\nDelays in execution leadto delivery delays and cause missed\nopportunities. \n\n\n\nDigital contract management systems offer much more transparency, making it easier for team members to share information. Automated alerts improve accountability and avoid the problem with documents getting lost on desks for days or weeks. \n\n\n\n4. Mismanagement of Renewal Contracts\n\n\n\nAutomatic renewal clauses between two parties that expect to have a\nlong-term working relationship are very popular due to the convenience they\nprovide.\n\n\n\nWhile these clauses are very convenient and can save time and money when\nproperly managed, mismanagement of these contracts can have several\nconsequences.\n\n\n\nIt\u2019s easy to forget about these contracts as they typically don\u2019t need\nto be tended to. However, this can lead to the renewal of a deal with an\nindividual or organization that you no longer want to associate with. It also\ncan keep you from being able to negotiate better rates as your businesssituationevolves\nover time. \n\n\n\nIt\u2019s critical that you use a contract management system that automatically\nreminds you of renewal dates months before the renewal date kicks in, so you\nreview the contract and make an informed decision. \n\n\n\n5. Using a\nPaper-Based System\n\n\n\nUsing paper contracts in your organization is an incredibly inefficient\nway to manage large amounts of contracts.\n\n\n\nPaper-based systems cause delays and tend to waste time. Additionally,\nthis can cause issues such as discrepancies between copies of the same\ndocument, tampering, or theft.\n\n\n\nA physical system also makes it harder to share information with all of\nthe key stakeholders within your organization.\n\n\n\nUsing a digital contract management system can make accessing documents\neasier and help minimize inaccuracies and discrepancies.\n\n\n\nThe easiest way to avoid all of these contract management traps is to make sure you are using the right cloud-based contract management system.