Best Contract Lifecycle Management Software

Contracts, just like other things in life, go through a lifecycle. From their inception to termination and beyond, the management of contracts involves a series of stages that ensure their effectiveness and compliance. Simplifying the jargon, we can break down the contract management lifecycle into six key stages that mirror human experiences.

By understanding these stages in relatable terms, you'll be better equipped to navigate the contract management process and take the necessary steps to get things moving when a contract request lands on your desk.

What is Contract Lifecycle Management (CLM) Software?

Contract lifecycle management software is crucial in supporting businesses throughout the contract lifecycle, facilitating a seamless process from initial creation to post-signature activities. It encompasses activities such as obligation tracking, contract resolution, and contract compliance management.

By storing all contract data in a centralized repository, these software tools enable organizations to ensure that both internal and external stakeholders are well-informed and adhere to their contractual obligations.

CLM solutions cater to various departments within an organization since contracts are an inherent aspect of numerous business operations. Furthermore, these tools typically integrate with a range of software, including CRM software, e-signature software, accounting software, proposal software, and CPQ software.

Who Uses CLM Software?

Contract lifecycle management software is utilized by various departments within an organization to streamline and enhance contract management processes. Let's take a closer look at the different teams that commonly benefit from CLM software.

1. Sales Teams

   Sales teams heavily rely on contracts to establish agreements with customers. CLM software enables sales teams to streamline the contract creation process, track contract milestones, and manage customer commitments. It helps with contract generation, automates approval processes, and offers perceptions of how well contracts are working. 

2. Finance Teams

   Finance teams play a critical role in managing the financial aspects associated with contracts. They have the resources to automate the billing and invoicing procedures thanks to contract lifecycle management software. It integrates with accounting systems, allowing finance teams to track contract-related revenue, monitor payment terms, and generate accurate financial reports. 

3. Legal Teams

   Contract management is a core responsibility of legal teams, and contract lifecycle management software simplifies their work processes. It assists legal teams in creating, reviewing, and approving contracts, ensuring compliance with legal requirements. CLM tools facilitate collaborative workflows, version control, and centralized storage of contract documents. It also helps legal teams monitor contract obligations, manage contract renewals, and mitigate risks associated with non-compliance.

4. HR Teams

   Human Resources (HR) teams handle a wide range of contracts, such as employment agreements and vendor contracts. To assist HR teams in the creation, review, and management of these contracts, Contract Lifecycle Management (CLM) software is utilized. This software automates approval workflows, keeps track of important contract dates, and offers visibility into contractual obligations.

What are the Features of Contract Lifecycle Management Software?

When evaluating the features of top-notch contract lifecycle management software, it is essential to consider certain key aspects. The best contract lifecycle software offers these features to enhance contract efficiency and ensure effective contract lifecycle management.

1. Contract Creation and Templates

   A robust CLM software allows users to create contracts efficiently and accurately. It offers pre-defined contract templates that can be customized to meet specific requirements, saving time and ensuring consistency. Users can easily input relevant information, clauses, and terms while the software ensures legal compliance and adherence to company policies.

2. Contract Database

   A comprehensive contract database is a core feature of contract lifecycle management software. It serves as a centralized repository where all contracts are stored, organized, and easily searchable. This feature allows users to quickly locate specific contracts, review contract details, track key dates and milestones, and maintain a complete contract history. By having a well-organized contract database, organizations can improve contract visibility and accessibility.

3. Contract Editing

   CLM software should provide intuitive and user-friendly editing capabilities. It allows users to make modifications, add or remove clauses, and update contract terms as needed. The software typically includes version control, ensuring a clear audit trail of contract changes and preserving a history of previous versions. Efficient contract editing features enable collaboration between stakeholders, ensuring accurate and up-to-date contract content.

4. Advance Contract Analytics

   Cutting-edge contract lifecycle management software utilizes sophisticated analytics to extract valuable insights from contract data. These analytics capabilities enable organizations to gain actionable intelligence by evaluating contract performance, identifying patterns, and pinpointing risk or potential growth areas. By harnessing data-driven insights, organizations can make informed decisions, optimize contract terms, and enhance their overall contract management strategies.

5. Contract Approvals

   Contract lifecycle software facilitates streamlined contract approval workflows. It allows users to define approval processes, set up automated notifications, and track the status of contract approvals in real-time.

   This feature helps ensure that all necessary stakeholders review and approve contracts within designated timelines, minimizing delays and bottlenecks in the approval process. Organizations can achieve faster contract turnaround times and improve overall efficiency.

What are the Benefits of CLM Software?

The best contract lifecycle management software offers numerous benefits to organizations by streamlining and improving their contract management processes. Let's explore each of these benefits in detail:

1. Increased Self-Service

   According to a report by Forrester, implementing self-service contract management software can reduce contract cycle times by up to 50%. CLM software empowers users with self-service capabilities, enabling them to independently manage their contracts. Users can access the software to create, review, and track contracts without heavy reliance on other departments or manual processes. This reduces bottlenecks, saves time, and improves overall operational efficiency.

2. Audit Trail

   Contract lifecycle management software provides a comprehensive audit trail of all contract activities and changes. It captures and records every action taken on a contract, including modifications, approvals, and communications. This feature ensures transparency and accountability, enabling organizations to maintain a complete history of contract events. The audit trail also facilitates compliance with regulatory requirements and supports risk management efforts.

3. Performance Tracking

   According to a study by Aberdeen Group, companies that utilize CLM software experience a 26% improvement in contract compliance rates and a 30% increase in on-time contract renewals. Contract lifecycle management companies allow organizations to track and monitor contract performance against key metrics and milestones. It provides real-time visibility into contract status, deadlines, and obligations. This feature helps stakeholders proactively manage contracts, ensuring timely execution and compliance with contractual commitments.

4. Enhanced Automation

   Contract Lifecycle Management (CLM) software incorporates advanced automation features to optimize contract management procedures. By automating tasks such as contract generation, approval workflows, notifications, and document storage, contract lifecycle software minimizes manual errors, expedites contract cycles, and allows employees to allocate their time to more strategic endeavors. This enhanced automation streamlines operations increases efficiency, and enables a focus on high-value activities.

List of Top Contract Lifecycle Management Software with Pros & Cons

Effective contract management is crucial for organizations to streamline operations and mitigate risks in today's fast-paced business environment. We will explore the top CLM solutions that offer robust features, user-friendly interfaces, and seamless integration capabilities, empowering businesses to optimize their contract management processes.

1. PandaDoc

PandaDoc is a comprehensive solution designed to streamline and optimize the entire contract management process. It offers a range of powerful features and functionalities to simplify contract creation, negotiation, execution, and tracking.

With PandaDoc CLM Software, businesses can efficiently manage their contracts from start to finish, ensuring compliance, reducing manual errors, and enhancing collaboration among teams. The software provides intuitive contract templates, customizable workflows, and automated approval processes to expedite contract cycles.

Pricing

• Essentials: $19 USD/month per user
• Business: $49 USD/month per user
• Enterprise: Contact Sales

2. DocuSign

DocuSign offers comprehensive contract lifecycle management software that focuses on enhancing and optimizing the entire contract lifecycle. It enables organizations to efficiently handle contract creation, negotiation, execution, and compliance.

With a centralized repository for contract data, DocuSign CLM facilitates seamless access and collaboration among internal and external stakeholders. Advanced features like contract creation, templates, editing, approvals, and analytics further enhance the functionality of DocuSign CLM.

Pricing

• Custom Pricing

3. ContractWorks

ContractWorks is a comprehensive contract lifecycle management software designed to simplify and streamline contract management processes. With its user-friendly interface and robust features, ContractWorks helps organizations effectively manage the entire lifecycle of contracts. From contract creation and negotiation to execution, compliance, and renewal, 

ContractWorks provides a centralized platform to store, track, and collaborate on contracts. Its advanced search and reporting capabilities enable easy access to contract data, ensuring quick and informed decision-making. With automated reminders, deadline tracking, and customizable workflows, ContractWorks helps improve efficiency and reduce risks associated with contract management.

Pricing

• Standard: $700/Month/Billed Annually
• Professional: $900/Month/Billed Annually
• Premium: $2000/Month/Billed Annually

4. Concord

Concord is an innovative contract lifecycle management tool that transforms contract management for organizations. It offers a user-friendly platform that simplifies the entire contract lifecycle, from creation to renewal.

Concord enhances communication, efficiency, and compliance with collaborative features, customizable templates, e-signature capabilities, automated reminders, and advanced analytics. It provides a centralized repository for storing contracts, catering to businesses of all sizes, and driving streamlined contract management processes for business growth.

Pricing

• Standard: $23/user/month
• Pro: $59/user/month
• Enterprise: $109/user/month

5. Agiloft

Agiloft is a dynamic and adaptable solution that optimizes and automates the complete contract lifecycle. It empowers organizations to effectively handle contract creation, negotiation, approval, execution, and renewal.

Agiloft features a centralized contract repository and offers customizable workflows, automated notifications, and document generation. Its strong analytics and reporting capabilities provide valuable insights into contract performance and compliance.

Pricing

• On-Request

How Much Does Contract Lifecycle Management Software Cost?

The pricing of contract lifecycle management software differs based on the available features and subscription plans. Typically, software providers offer monthly or annual subscriptions with potential discounts for yearly payments, high contract volumes, or a large user base. Small businesses with standard contracts can opt for free or affordable plans, enabling users to upload their agreements, utilize templates, and send them for e-signature.

Paid plans typically start at $25 per user per month*, providing basic contract lifecycle management features. On the higher end, premium plans can cost up to $125 per user per month*, offering advanced features such as AI technologies, automation, and extensive customization options. The pricing varies based on the level of sophistication and functionality required by the organization.

Key Challenges of CLM Software

Contract lifecycle management software faces several key challenges that organizations need to address. Overcoming these challenges is crucial for organizations to fully leverage the benefits of CLM software and achieve efficient contract management throughout the lifecycle.

1. Compliance Requirements

   One of the primary challenges in contract management is ensuring compliance with legal and regulatory requirements. Contract lifecycle management software should provide robust features to help organizations track and adhere to compliance obligations. This includes features such as automated reminders for key dates, monitoring contract terms, and facilitating compliance reporting.

2. Security

   Security is a paramount concern in contract management as it involves handling sensitive and confidential information. To safeguard against unauthorized access, data breaches, or leaks, contract lifecycle management software should implement robust security measures like encryption, access controls, and data backup processes. It is essential for organizations to prioritize security when choosing a CLM solution to protect valuable contract data.

3. Complex Integrations

   Integrating CLM platforms with existing systems can be complex, particularly due to variations in data formats and compatibility. However, seamless integration is essential to facilitate smooth data flow, minimize manual entry, and prevent data duplication. To address this challenge, organizations should consider CLM software that provides user-friendly integration options and robust API capabilities.

4. Accessibility and Adoption

   Achieving widespread accessibility and adoption of contract lifecycle management platform presents its own set of challenges. To overcome these hurdles, it is crucial to prioritize user-friendly interfaces that are compatible with various devices and platforms. Additionally, providing comprehensive training and support to employees is essential in fostering adoption and maximizing the advantages of the software.

Latest Trends in Contract Lifecycle Management Software

Contract lifecycle management software is continuously evolving to meet the changing needs of organizations. These trends are shaping the future of contract lifecycle management companies and enabling organizations to streamline their contract management operations.

1. Advanced Analytics

   Advanced analytics is a growing trend in CLM software, enabling organizations to extract valuable insights from their contract data. By leveraging data analytics techniques such as machine learning and natural language processing, this software can analyze large volumes of contracts and identify patterns, trends, and risks.

   These findings assist organizations in making data-driven decisions, optimizing contract conditions, and improving overall contract management methods. According to a survey by Deloitte, 49% of organizations are planning to invest in advanced analytics for contract management.

2. Vendor Management

   A study by Gartner predicts that by 2025, 75% of organizations will use contract lifecycle management software to improve vendor management processes. Effective vendor management is critical for organizations to ensure successful partnerships and contract performance.

   CLM tools incorporate features specifically designed for vendor management, including vendor onboarding, performance tracking, and risk assessment. These features help organizations evaluate vendor performance, manage vendor relationships, and ensure compliance with contractual obligations.

3. Blockchain Technology

   Blockchain technology is gaining traction in the field of contract management. Contract lifecycle management software can leverage blockchain to create secure, tamper-proof records of contract transactions and activities. This enhances transparency, reduces the risk of fraud, and ensures the integrity of contract data. Blockchain-based CLM solutions provide a decentralized and immutable ledger that can be accessed by relevant stakeholders, streamlining contract management processes.

Top Contract Lifecycle Management (CLM) Software Comparisons

• PandaDoc vs Conga
• DocuSign vs PandaDoc
• DocuSign vs Juro
• DocuSign vs Ironclad
• Icertis vs Ironclad
• Ironclad vs LinkSquares
• Ironclad vs SpotDraft
• Coupa vs SAP Ariba

Conclusion

In summary, implementing contract lifecycle management (CLM) software brings substantial advantages by streamlining the contract management process, resulting in time and resource savings. It serves as a valuable asset for legal teams, promoting efficiency and cost-effectiveness. Exploring various CLM platform options that align with your specific requirements and scheduling a demo to personally experience the benefits it offers is advisable.

By embracing contract lifecycle management tools, you can effectively reduce time spent, optimize resources, and alleviate the challenges associated with manual contract management. Allow the CLM software to handle the demanding tasks, enabling you to focus on more critical responsibilities effortlessly and confidently.