Every business is run on contracts. Whether it be the business's contract with its vendors, employees, or investors, a business's relationship with its stakeholders is always specified in a contract. They are legally enforceable documents that provide the basis for understanding between any two parties regarding their responsibilities and the scope of their expectations in return.
However, in a complex regulatory and business landscape, contract management can become increasingly painful. There are various stages to any agreement between a business and any stakeholder, leading to a complex contract. More often than not, a large volume of contracts causes delays, errors, lack of transparency, and other contract-related issues.
Enter CLM software- tools designed to automate and streamline the contract management process from start to end, making contract execution easy.
In this blog, we will take an overview of contract lifecycle management, and list the top tools in the CLM market.
What is Contract Lifecycle Management (CLM)?
Contract lifecycle management refers to the process of managing the terms, execution, storage, and compliance of a business contract from its creation to its expiry or renewal. Businesses have to deal with a lot of contracts with many stakeholders, and CLM is the centralized process keeping every agreement legally binding, accurate, and transparent.
Here are some of the challenges involved in CLM (Contract Lifecycle Management):
Lack of proper storage
Lack of standardization in contracts
Lengthy contracts with inconsistent legal terms cause misalignment
Contract security
To tackle these issues, and create standardized contracts whose lifecycles can be adequately managed, contract lifecycle management software is used. These tools are designed to empower a business to be able to manage each key contract data in their contract, ensure compliance and alignment, secure contract data, and also make contract tracking way easier.
No matter the phase of the contract lifecycle, CLM software ensure proper audit trails, risk management, and contract administration, and maintain transparency of contract terms.
Some benefits of contract lifecycle management tools are:
Automated workflows and collaboration tools
Easy obligation management
Faster contract lifecycles
Standardization through contract templates
Robust financial systems and payment terms
Efficient and secure contract storage and contract compliance
Top Contract Lifecycle Management Software
There are many CLMs available in the market today- but what makes a successful CLM is dependability. Contracts are the biggest legal dependency for a business, and ensuring a smooth contract creation, contract renewal, etc. is crucial to having a dependable contract process.
With that in mind, here are the top CLM software that have proved that they are the most dependable and efficient contract management solutions in the market.
1. DocuSign
DocuSign is an intelligent document signing and management platform that also offers DocuSign CLM, a full contract lifecycle management suite that offers innovative features that can save up to weeks of time spent in contract processes. It offers innovative features like a clause library and version control, ensuring effective contract maintenance. Combined with their signing features, it is a comprehensive contract and document tool.
Key Features and Benefits
Auto-populate new agreements with data directly from Salesforce and one-click contract creation with template library. The legal team can also define a library of legal clauses.
Conditional rules for review of non-standard items, version control options for assisting in review. Reviews are fast with comments and tasks acted directly through email and Slack.
Automatic contract routing for internal and external review. AI-assisted summarization and negotiation for contracts assisting in creating fast review cycles.
100+ pre-configured workflow steps to generate, review, approve, send for signature, store contracts, and more- making contract management a hassle-free process.
Searchable contract repository serving as a single source of truth. Varying permission levels can be set and specific clauses, keywords, and meta-data can be easily searched for.
AI analytics for identifying risk sources, extracting key contract points, and preparing reports through 100+ pre-trained AI models.
Potential Drawbacks
Users report a high learning curve for new users.
Certain users also report limited customization options and high costs as a drawback.
2. IronClad CLM
Ironclad is a modern contract lifecycle management platform that specializes in business-ready automation and real-time collaboration features. It stands out for its ability to transform contracts into structured data that can be analyzed and actioned. The platform combines workflow automation with a dynamic repository system, making it particularly effective for high-velocity legal teams. It also boasts many advanced AI features assisting in contract lifecycle management.
Key Features and Benefits
Dynamic workflow builder with conditional logic and parallel routing capabilities, allowing teams to create complex approval workflows without coding- just drag-and-drop functions.
Robust activity feeds to track the contracting process from start to end.
Integration with major business tools like Salesforce, DocuSign, and Google Drive for seamless data flow and contract creation
Real-time editing and collaboration features with Microsoft Word-style tracking and version control including built-in messaging and @mention functionality for streamlined internal communication.
Full-text search across all contracts and metadata with advanced filtering options
Customizable dashboard showing contract status, cycle times, bottlenecks, and real-time analytics on contract performance and risk assessment.
Create shareable reports on contract status, risk issues, etc. using out-of-the-box or customizable templates.
Potential Drawbacks
Some features are not very intuitive according to certain users, such as the limited customization options in the repository.
The pricing structure and some integrations are also not in their ideal state, according to user reviews.
3. PandaDoc
PandaDoc is a document automation cum contract management solution that focuses on streamlining the entire document lifecycle from creation to signing. It differentiates itself through its user-friendly interface and extensive template library. The platform is particularly strong in sales-focused contract management and electronic signature integration. It has a vast range of strong integrations ranging from Slack, major CRMs, Insightly, Nutshell, Teams, etc.
Key Features and Benefits
Extensive template library with drag-and-drop document builder and content blocks for quick contract creation and dynamic rules to auto-populate fields based on CRM data.
Integrated communication channels for all contracting parties to remove lengthy email chains increase transparency, and engagement, and conduct fast-paced reviews and negotiations.
Dynamic pricing tables and product catalogs that can be embedded directly into contracts with automatic calculations.
Built-in electronic signature capability with complete audit trails and compliance tracking for multiple global standards
Automated workflow rules for approval routing and real-time collaboration with comment threading
Integration with major CRM platforms including Salesforce, HubSpot, and Pipedrive for data synchronization
Analytics dashboard tracking document status, viewing time, and interaction metrics for better engagement insights.
Mobile-responsive design with dedicated apps for iOS and Android platforms for on-the-go contract management
A centralized repository that is dynamic and searchable via any number of key terms to manage all your legal documents effectively
Potential Drawbacks
Users have reported certain features as buggy and unreliable at times.
Users also report that editing documents and contracts, especially if the auto-recognize fields feature is not working, is a hassle.
4. Icertis
Icertis is an enterprise-focused contract intelligence platform that leverages AI to transform contracts into strategic business assets. The platform is known for its scalability and ability to handle complex global contract operations. It stands out for its robust compliance features and advanced AI capabilities for contract analysis.
Key Features and Benefits
AI-powered contract intelligence engine that automatically extracts and analyzes key contract data and obligations
Risk management framework with configurable scoring models and automated alerts for potential compliance issues
Multi-language support with native contract authoring and analysis capabilities in 40+ languages
Advanced obligation management with automated tracking and proactive notifications for key dates and milestones
Extensive integration capabilities with enterprise systems including SAP, Oracle, and Microsoft Dynamics
Configurable business rules engine for automated contract creation and approval workflows
Real-time visibility into contract performance metrics with customizable dashboards and reporting
Potential Drawbacks
Complex implementation process requiring significant IT resources
Higher cost points suited for enterprise-level organizations
5. Conga Contracts
Conga Contracts or Conga CLM is an end-to-end contract lifecycle management software with a strong emphasis on revenue optimization and sales integration. Conga also offers Conga Complete Revenue Lifecycle Cloud which is a revenue optimization platform.
Key Features and Benefits
Automated document generation with dynamic templates and clause library integration along with notifications for each step in the review process.
Advanced workflow automation with conditional routing and parallel approval processes. Generative AI to extract information and key data points from third-party contracts as well
Integration with Salesforce and other CRM platforms for seamless quote-to-contract processes
AI-powered contract analysis for risk assessment and obligation tracking, along with secured workspaces where buyers and sellers can be invited for contract negotiations.
Scorecard for all contracts, along with standard and ad-hoc reports to ensure quality and reliability of all documents and reduced contract risks
Complete version history, redlining, and audit trails to track any and all changes, including a direct plugin to track such changes across MS Word and import them into the CLM solution.
Automated renewal management with proactive notifications and revenue optimization tools
Comprehensive reporting suite with customizable dashboards and business intelligence tools
Potential Drawbacks
Some users have reported that the setup is complex, and there is a lack of guidance regarding the same from Conga.
Some users also complain about the interface design being too complex, leading to difficulty in finding features, which shouldn't be the case for a contract lifecycle management software.
6. SirionLabs CLM
SirionLabs offers an AI-powered contract lifecycle management platform with particular strength in post-signature contract management and supplier relationships. SirionLabs is one of the leaders in enterprise contract lifecycle management because of its robust digitization and enterprise-level communication features. The platform emphasizes performance management and obligation tracking throughout the contract lifecycle.
Key Features and Benefits
AI-driven contract digitization and data extraction with high accuracy rates. Search for any query in plain language and the AI goes through the contract repository and brings up the answers.
Comprehensive obligation management with automated tracking and performance monitoring of contract terms vs actual performance
Advanced analytics for supplier performance management and risk assessment, along with predictive analytics suggesting potential areas for improvement during meetings
Built-in collaboration tools for both internal teams and external stakeholders. 80% faster redlining and clear issue summaries as well
Automated invoice reconciliation and payment tracking capabilities, and 80% faster contract reviews with AI model suggesting deviations from preferable positions.
Robust compliance management with regulatory updates and automated alerts- companies store and manage as many as 7 million contracts with Sirion.
Multi-language support with natural language processing capabilities across the system. Search using plain languages, create notes, and instantly get citation links supporting insights.
Potential Drawbacks
It may not be suitable for small businesses as the feature set is suited to large enterprises with a focus on contract volume.
Wrapping Up
Contract lifecycle management tools are a great way of ensuring that a system of intelligence is protecting your contracts and that you are on top of all your legal obligations. They also assist in increasing revenue through cost savings, reducing errors, and maintaining compliance with legal requirements.
The tools listed above take care of the entire contract lifecycle management process from start to end, ensuring that businesses never have to face problems in maintaining regulatory compliance or fulfilling their contract obligations. This can be a huge competitive advantage in terms of ease of doing business and not overlooking expectations. With artificial intelligence, some of these tools can also automate signing and routine tasks related to contract management, and provide intelligent analytics to empower decision-making.
FAQs
What is a contract management tool?
A contract management tool is a tool designed to automate contract storage, tracking, compliance, and other tasks related to business contracts so that a business is always up-to-date on its legal obligations and expectations. It helps businesses manage their relationships with various stakeholders (vendors, customers, etc.) more effectively.
What are the four 4 blocks of good contract management?
The four blocks of good contract management are clarity of terms and objectives, effective implementation and strategy, robust processes, and finally, intelligent management of all contracts through technology. This is a framework designed to help businesses frame a good contract management process.
What is the lifecycle of a contract?
The lifecycle of a contract starts with creation or approval, defining legal expectations between the signing parties, then comes the execution of contract obligations, supported by effective monitoring and management, and finally, a contract lifecycle ends and goes to expiry or renewal, whichever the case may be.
What are the four stages of contract management?
The four stages of contract management are:
Approval
Execution
Monitoring
Termination
The monitoring phase starts as soon as a contract is approved and contract lifecycle management tools help in maintaining an efficient monitoring process to ensure all contract responsibilities are being fulfilled.
Why is there a need for Contract Lifecycle Management Software?
Companies dealing with a large amount of contracts (whether with suppliers or customers) need to stay on top of all their responsibilities, payment terms, and dates, and ensure that the contracting party is also meeting its responsibilities. Manual management of contracts, including their creation, gets hectic and out of hand quickly in large numbers. Hence, CLM software is used to automate the creation, review, redlining, performance monitoring, and other contract tasks.
What are some best practices for contract lifecycle management?
Some of the best practices include:
Implement version control
Implement permission levels
Ensure a centralized repository for all contracts
Conduct regular reviews
Monitor contract terms regularly
Automate routine tasks
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