Contract creation, negotiation, and management are critical components of any business, regardless of size. However, each step takes time and is prone to common data entry errors. Contract management software, sometimes referred to as contract lifecycle management (CLM), speeds up the process while lowering financial and audit risks.
What is Contract Management Software?
Contract management software automates the generation, tracking, and monitoring of contracts. Professionals involved in contract negotiation, such as salespeople or account representatives, are entrusted with defining terms and service level agreements, changing agreements, and executing contracts. Both parties of a deal’s legal departments participate in the contracting process to ensure compliance with laws and regulations, as well as internal company policies.
Contract lifecycle management software streamlines these procedures by enabling users to write, save, monitor, redline, and distribute complex business contracts. By allowing firms to simplify sales processes and communicate during contract creation, this type of software helps alleviate bottlenecks in the contract negotiation process. Contract lifecycle management software generally interfaces with CRM software, proposal software, accounting software, and e-signature software and is part of a portfolio of technologies used to manage overall vendor or contractor relationships.
A product must meet the following criteria to be considered for inclusion in the Contract Management category:
- Include a document repository that can be organized into multiple categories for each type of contract.
- Provide users involved in the drafting of business contracts with templates that can be altered.
- Allow employees to effortlessly create, amend, distribute, and collaborate on contracts both inside and outside (with customers or partners)
- Allow users to receive notifications for major milestones such as contract expiration or renewal.
- Comply with business legal requirements as well as the internal business regulations of the contract’s parties.
We examined more than three dozen suppliers based on important characteristics such as customization and automation to determine the best contract management solutions. In addition, we examined price options, security and compliance procedures, as well as popular connectors.
The Best 6 Contract Management Software Options for 2023
- PandaDoc is the best overall.
- DocuSign is the best option for small businesses.
- Concord is the best option for large businesses.
- Agiloft is the best for customization.
- Outlaw is the best for reporting.
- ContractWorks is the best for automation.
#1. PandaDoc
PandaDoc is a low-cost all-in-one contract lifecycle management software solution that includes a powerful contract and document management platform.
Pros
- On paid programs, customer service is available 24 hours a day, seven days a week.
- Documents, e-signatures, and users are all unlimited.
- 14-day risk-free trial
Cons
- Only Business or Enterprise plans have access to the content collection.
- The bulk transmit option is not free.
- The free plan has few integrations.
PandaDoc, which was founded in 2011, uses simple contract management software to help you manage the whole lifecycle of your contracts. This low-cost, feature-rich software stands out from the crowd, making it the best overall solution for businesses of any size.
Use this browser-based software or download PandaDoc’s mobile app for Android and iOS to get up and going quickly. You’ll love its powerful tools, which include:
- Contract and content library
- Contract duplication
- E-signature
- Notifications in real time
- Processing of payments
PandaDoc offers configurable templates as well as a drag-and-drop editor with rich media. You can also create your own workflows, processes, and rules. Customers enjoy the 15 customer relationship management (CRM) connections, which include HubSpot, Pipedrive, and Microsoft Dynamics.
This secure service provides firms with a document audit trail while keeping data safe in its secure cloud storage facilities. PandaDoc provides unique solutions if you require a Health Insurance Portability and Accountability Act (HIPAA)-compliant program.
PandaDoc CLM software is available in monthly or annual plans, with annual payments saving you up to 34%. Monthly billing is used for the following package prices:
- Free eSign: Get an infinite number of legally binding signatures and document uploads, as well as the ability to accept payment, all for free.
- Templates, a drag-and-drop editor, pricing tables, and document analysis cost $19 a month per user.
- CRM integrations, content library, custom branding, approval workflows, and Zapier integrations cost $49 a month per user in a business.
- Enterprise: Get a tailored package that includes an unlimited number of team workspaces, Salesforce integration, and user performance reporting.
#2. DocuSign
DocuSign provides small businesses with low-cost contract management software solutions ranging from e-signatures to a full CLM system.
Pros
- No credit card is required for the 30-day free trial of an e-signature service.
- 24/7 live chat assistance
- Workflow configurations that are adaptable
Cons
- A full CLM solution necessitates a tailored quote.
- The initial workflow configuration is difficult.
- Sometimes has issues syncing documents.
DocuSign launched in 2003 as an e-signature company, but its 2018 acquisition of SpringCM provided the company with CLM capabilities. DocuSign is frequently used by businesses since it is straightforward to use for all parties. DocuSign’s e-signature plans were determined to be best for small firms in our assessment, though end-to-end solutions are available for contract-heavy operations.
You may use this browser-based software online or on the go with the DocuSign mobile app for Android and iOS. Several functionalities are offered in the e-signature and CLM program, including:
- Templates that are reusable
- Reminders to recipients
- Receipt of payments
- Comment notifications in real time
- Repository of content
Use customizable logo and color themes to personalize your contract communications, and take advantage of smart forms with custom formulas. DocuSign integrates with over 350 pre-built integrations, including Salesforce, Microsoft, and Google.
Small business owners value audit trails that can be used in court, secure storage facilities, and General Data Protection Regulation (GDPR) compliance. To assist with your regulatory obligations, the company provides specific plans for realtors, government agencies, and healthcare.
Many small businesses benefit from e-signature plans. You have the option of paying annually or monthly. The following packages are based on monthly payments:
- Personal: $10 for a single-user plan with five e-signature documents per month and primary contract fields.
- Standard: $25 per month per user for a maximum of five users; includes auto email reminders, deadline notifications, personalized branding, and comments.
- Business Pro: $40 a month per user for up to five users to accept payments, use advanced fields, and issue contracts in bulk.
#3. Concord
Concord, with its comprehensive onboarding assistance and enterprise-grade functionality, enables businesses to send an infinite number of documents.
Pros
- Contracts, viewers, e-signatures, and storage are all unlimited.
- All plans include bulk upload capabilities.
- No credit card is required for the 14-day free trial.
Cons
- There are no refunds on plans.
- Long data logs are generated as a result of versioning needs.
- Contracts negotiated outside of the platform are difficult to incorporate.
Concord was founded in 2014, and its straightforward design assists organizations in staying on top of compliance and modifications throughout the lifecycle. It is the best alternative for large enterprises due to its infinite capacity and crucial integrations.
Concord appears to be identical to Gmail at first glance. You can set it up in minutes and receive complete onboarding assistance with all programs. You may work from whichever software you like, whether it’s the Concord dashboard or Google Drive. Top CLM characteristics include:
- Editing in real time
- Comment, redline, and chat
- Storage of templates
- Fill clever fields automatically
- OCR (optical character recognition) full-text search
- Reminders about deadlines
- Integrated e-signature function
Concord provides a high level of customization with a bespoke approval process, reports, insights, and user groups. It has integrations with Dropbox, DocuSign, and Salesforce. The company employs bank-grade encryption and secure data centers. Furthermore, strict versioning requirements generate a fresh log every time a field is entered or updated, providing you with a consistent audit trail.
The CLM packages provide clear and transparent pricing based on the number of users and the length of the contract. Choose from three to unlimited user options, as well as monthly or annual pricing. Annual payments will save you more than 26%. The following annual packages are based on five users:
- Free: Up to three users and three templates can use unlimited documents and e-signatures.
- Standard: Bulk-send and amendment management at $115 per month.
- Pro: All integrations are $295 per month.
- Enterprise: Request a custom quotation for a 99.9% SLA, pre-approved clause library, and custom branding.
#4. Agiloft
Agiloft offers code-free contract and commerce lifecycle management modifications.
Pros
- SMBs can get a free plan.
- Guarantee without conditions
- Service level agreement with 99.9% uptime (SLA)
- Unrestricted free trial
Cons
- There is no internal chat feature.
- There are so many options with unlimited personalization that it might be overwhelming.
Agiloft is the list’s oldest provider, having been created in 1991. However, it has remained current with numerous modifications, providing enterprises of all sizes with customized solutions. Agiloft is the clear winner in our best for customization category thanks to its enterprise-grade and unique capabilities.
Agiloft’s cloud-based contract lifecycle management software can be used on any computer. Every business benefits from:
- Online training for free
- Contract creation
- Clause repository
- Contract printing templates
- DocuSign or Adobe Sign e-signature
- Repository of content
With its code-free customizations, you can create custom workflows, routing procedures, reports, and even a customized dashboard to manage key performance indicators (KPIs) and alarms. Agiloft works with Google and Microsoft to allow you to rapidly upload documents using the software you currently have in business.
Agiloft provides an audit trail for every document, stores your data in secure data centers, and complies with Sarbanes-Oxley, GDPR, and HIPAA.
In terms of cost, Agiloft believes in tailor-made solutions. You have the option of paying monthly, quarterly, or annually. All plans are based on the number of users you have and begin at $65 per user per month:
- Professional: Phone support and five-minute intervals for timer-based rules are now available.
- Professional Extended: Get vendor and customer portals, multi-language support, and pre-built Salesforce and Jira connections.
- Enterprise: Pre-built artificial intelligence (AI) modes and in-house deployment.
- Enterprise Extended: Provides round-the-clock assistance and unlimited custom models.
#5. Outlaw
Using Outlaw CLM software, track critical data points for complete visibility.
Pros
- Contracts, storage, and e-signatures are all unlimited.
- Quick installation
- Live chat assistance
Cons
The agreements can only be signed by particular individuals, and not all businesses require this level of security.
Outlaw, a newbie to the organization, was created in 2017. It is the best solution we found for your reporting needs, because of its robust dashboard and AI-assisted analytics.
Outlaw is suitable for the majority of organizations, and its unlimited cloud storage, contracts, and e-signatures eliminate the need to worry about volume. The following are the best features:
- Native e-signature support
- Redlining in the cloud
- Stripe secure payment processing
- Notifications in real time
- Search by full-text
- Templates for self-service
- Contract fields that change dynamically
You’ll like its AI analytics, which allows you to generate reports on deadlines, contract statuses, and ongoing activities. Salesforce, HubSpot, Zapier, Slack, and QuickBooks are all supported by Outlaw. Furthermore, the company stores your data in SOC 2-compliant data centers.
Annual billing allows you to save 20% and offers flexible pay-per-seat plans. For payment packages, Outlaw defines two user roles, but you can’t add collaborators until you have five core users. This price is for monthly billing:
- Core Users: Account owners with complete control pay $125 per month.
- Collaborator: $60 per month per user for active users who do not have full administrative capabilities.
#6. ContractWorks
ContractWorks, in collaboration with AI-enabled technology, offers automated services that save you time and money.
Pros
- Users are unlimited.
- 24-hour customer service
Cons
- There are very few integrations.
- There is no mobile app.
- There is no document creation, however, templates can be created.
ContractWorks has been providing simple software that takes only minutes to set up since 2012. ContractWorks is the best alternative for your automation needs because of its automatic smart document tagging, which employs AI technology.
Users like its simplicity, which includes drag-and-drop downloads and an OCR text-based search system that looks like a Google browser. Many popular features are included, including:
- Automatic smart contract outlines
- Contract storage
- Milestone notifications
- Automatic data collection
- Annotations provide for quick and easy document review.
- OCR and advanced search features
- Reminders sent automatically
- Integrated e-signature
ContractWorks offers various customization possibilities, including branding and reports that allow you to study any data point. You may also quickly store, schedule, share, and export reports. On Professional and Enterprise plans, the software integrates with Salesforce.
This CLM system includes audit log reporting, 256-bit data encryption, and secure data storage facilities.
All price levels are billed annually and on a volume basis. You can also contact the company for volume discounts. Plans include the following:
- Monthly fee of $600 for 2,500 documents and five e-signature licenses.
- Professional: $800 per month for 10,000 documents and ten licenses for electronic signatures.
- Enterprise: $1,000 per month for unlimited papers and 20 licenses for electronic signatures.
Is Contract Management Part of CRM?
Customer relationship management is concerned with customer and client relationships as well as sales, whereas contract management is concerned with the relationships of all parties engaged in a contract. Because of the volume of data that CM and CRM deal with on a daily basis, both systems benefit from a technical solution.
What is a Contract Lifecycle Management System?
Contract lifecycle management (CLM) automates and simplifies contract operations at critical phases. Initiation, authoring, process and workflow, negotiation and approval, execution, ongoing management and compliance (inside the repository), and contract renewal are among these stages.
How much does Contract Lifecycle Management Software Cost?
Low-cost CLM software starts at $59 per user per month, while higher-end systems can cost as much as $775 per month. The actual fee is decided by the number of contracts you will create and save in the software, as well as the number of users.
What are the Challenges of Contract Management?
- Contract Noncompliance and Regulatory Compliance Issues
- Contracts are not standardized or centralized.
- Ineffective Supply Chain Management.
- Expiry and renewal dates are mismanaged.
- Poor Contract Lifecycle Management Tools.
In conclusion
Poor contract management may be costing your business money. According to a SpringCM report, 64% of organizations claim contract approval processes are causing negotiations to stagnate. According to the report, the most significant impediment for businesses is a lack of systems for managing and moving contracts forward. Sixty percent of businesses use email to manage contracts, while only 32 percent use a contract management application. Six percent of businesses have no contract management process in place.
SpringCM polled 1,409 respondents, 32% of whom work for organizations with fewer than 100 employees and 16% for companies with more than 8,000 employees. According to the respondents, humans are responsible for 92% of contract management failures. As a result, the more automated your contract management system is and the more components of the end-to-end contract life cycle it can manage, the less likely it is that a snag would slow down the approval process.
Contract Management Software FAQs
Why is contract management software important?
A Contract Management software gives required insight into contract data, improves communication among parties, and saves time and money while posing minor risks.
What is the best way to manage contracts?
Doing a background check on the other party, determining a point of contact for both parties, establishing the contract lifecycle, agreeing on the review processes, outlining the consequences of delays, and keeping documentation of how the process went are six effective strategies for more effective contract management.
What are the four components of contract management?
- Contract management plan.
- Supplier relationship management.
- Transaction management.
- Variation.
- Top Benefits of Using Contract Lifecycle Management for Small Businesses
- Best Knowledge Management Software 2023: Top 21 picks
- MARKETING SERVICES: Digital Marketing Services & Contracts
- TICKETING SYSTEM: 17+ Best Ticketing Systems in the UK (+ Free Options)
- UNLIMITED LIABILITY EXPLAINED !!! Business Definition & All You Need
References
