Organizations depend on contracts to facilitate relationships between customers, employees, suppliers, and other key players in their operations. And contract request is where this lifecycle starts. Streamlined contract requests are the foundation of efficient contract management. However, many legal teams struggle with disorganized and fragmented request processes that lead to delays, higher legal costs, and lost resources.
Legal departments and business teams must understand that streamlining this process is vital to maintain operational efficiency, cut costs, and prioritize strategic initiatives. In the article, we will discuss practical ways to optimize this critical stage.
Why does an efficient contract request process matter?
Contracts do more than just being a legal document; they set expectations and protect all parties involved. An effective contract request process ensures agreements are created with all necessary details readily available during their creation, eliminating revisions or follow-up later on. Standardized requests help legal teams work more efficiently by speeding up contract creation and shortening approval timelines.
Implementing a seamless request process benefits not only legal departments but also other business units that rely on prompt and accurate agreements. Here’s how organizations can address common pitfalls in contract request processes and transform this stage for better outcomes.
Common challenges in the contract request process
- Lack of clarity in goals
Often, contract requests are made without clearly defined objectives. Without clear goals, terms, payment details, and responsibilities, it becomes difficult for the legal team to draft an agreement that satisfies all stakeholders. Ambiguous goals can extend the contract lifecycle by requiring extra discussions and revisions.
To avoid this, establish specific goals and ensure all involved parties agree on them before starting the request. Clearly document each side’s objectives and agree on the terms at the start. This approach equips the legal team with the information needed to draft contracts efficiently.
- Inconsistency in formats
A consistent contract request protocol is vital to avoid incomplete submissions and misinformation. The lack of a standardized form or guidelines often leads to errors that slow down the entire contract process. Inconsistent formats cause delays, resulting in legal teams spending valuable time seeking clarifications or correcting mistakes.
Standardizing the request process with a detailed form that captures all necessary data, including contract type, approval requirements, and critical dates, can mitigate these issues. Email is among the most inefficient ways for submitting contract requests; structured document forms like Word or Contract Lifecycle Management systems tend to be more efficient.
- Weak contract intake process
Poorly planned intake processes are just as problematic as no process. Without clear instructions and steps for request forms, it becomes chaotic, leading to delays and inefficiencies.
To counter this, make the intake procedure user-friendly, offering step-by-step guidance on submitting requests and the required information. Using Contract Lifecycle Management (CLM) software can automate the intake, flag missing details, and route the form to the appropriate reviewer. This approach reduces confusion and keeps the contract request process moving smoothly.
Steps to streamline the contract request process
To streamline the contract request process, organizations should adopt the following best practices:
- Automate the intake process
A CLM solution can significantly improve the intake process by ensuring consistency and reducing errors. Automated intake forms ensure that all required fields are completed before submission, minimizing the risk of missing information. An advanced CLM system like smartContract CLM will even autofill some fields based on your parameters, reducing manual data entry by business
The system then automatically routes the completed request to the appropriate person highlighting critical deadlines and the necessary information. Automating this stage minimizes manual work, allowing the legal team to focus on higher-value tasks.
- Leverage pre-approved templates for self-service contracts
Standard contracts such as NDA, and employment contracts can be generated quickly using templates. CLM systems enable legal teams to configure pre-approved templates, accelerating the drafting process and minimizing repeated reviews. Simple agreements are automatically generated using pre-approved language. This approach not only speeds up contract creation but also ensures consistent language across agreements.
- Centralize contract requests for better tracking and visibility
Implement a contract request repository to store and monitor all submitted forms. Centralizing requests ensures that no forms are overlooked, allowing teams to manage them more efficiently. The repository provides visibility into request status, keeping stakeholders informed and preventing delays from missed follow-ups.
smartContract CLM empowers you to centralize not just requests but your entire contract lifecycle including requests, reviews, negotitiations, renewals and more!
- Measure and optimize the contract request process for continuous improvement
Monitoring key metrics such as request completions, approval cycles, and error rates can uncover specific areas for improvement. You can take advantage of the data analytics provided by the CLM system to locate bottlenecks and streamline processes to increase efficiency quickly. Regularly evaluate and revise request protocols using feedback from legal teams and other stakeholders.
Crafting an effective contract request form: Essential elements to include
An effective contract request form is essential for a streamlined contract intake process. Here are the key elements to include:
- Requester information: Record the name, email address, and department of those making requests in order to streamline future communication.
- Contract type: Indicate the type of contract (such as an NDA, procurement agreement, or employment contract) so your legal team can select an appropriate template.
- Contract details: Provide fields to outline the scope, terms, and obligations of both parties, ensuring all critical information is documented upfront.
- Deadlines and approvers: Specify key dates like due dates and termination periods, and list the names of the approvers to ensure timely reviews.
Integrating the request form into the organization
Once the request form is created, it’s crucial to incorporate it seamlessly into daily operations:
- Clear communication across teams: Notify all employees about the new process and describe how to use it and where to find the form. Leverage various communication channels, such as company meetings, internal newsletters, and chat rooms, to ensure everyone is informed.
- Training and support: Conduct training sessions and provide resources, such as tutorials or FAQs, to help teams effectively use the new request form.
- Gather feedback for continuous improvement: Actively seek user input to identify issues and make necessary refinements to the form. Regular updates enhance user adoption and boost overall process efficiency.
Conclusion
Optimizing the contract request process is crucial for legal departments to streamline contract management, helping businesses operate more efficiently and reduce legal expenses. Automating intake, using standard templates, centralizing requests, and fostering collaboration enable organizations to accelerate contract processing and maintain consistent quality. An organized request form serves as the cornerstone of this practical approach, ensuring all relevant data is captured beforehand.
By employing these strategies, businesses can transform their contract request process, leading to a smoother and more effective contract lifecycle.