How you manage contracts influences business relationships. The right contract management system (CMS) speeds up delivery, maintains consistency and reduces risks.
This can help your organization avoid bottlenecks and missed deadlines. Renewals are crucial to reducing client churn, and using a CMS ensures customers get timely reminders.
To understand what makes a system effective, start with the core features every business should demand from a CMS platform.
What Are The Key Features Of A Good Contract Management System?
Contracts build the foundation of company revenue. Many companies drop the ball when determining which department is in charge of tracking milestones. Without accountability, you might miss renewals and stall lucrative deals.
Experts predict the global contract management software market will grow from $1.62 billion in 2024 to $3.24 billion by 2030. As more developers enter the CMS game, the available features increase. Advances in artificial intelligence (AI) make the platforms more intuitive.
Although many providers offer similar products, the interface and support vary widely. The following are the key features of a good contract management system:
Centralized repository and search uses metadata tagging to locate an agreement by parties, dates or clauses.
Automated workflows route contracts for review, trigger automatic approvals and use conditional logic to send the correct document to specific people.
Clause libraries and templates saved time drafting contracts, making the system easier for nonlegal players.
Digital signature integration streamlines contract approvals, putting all documentation in the same database.
Other elements may come into play depending on your industry. Spend time thinking through the entire life cycle of a contract and the various touchpoints. Note which ones might be automated to better serve the company and clients.
Methodology for Ranking CMS Providers
Although which platform works best for your organization will depend upon the industry and management’s priorities, ranking each provider on some basic criteria narrows the list to the top contenders in those areas. Each provider was ranked on the elements in the table below.
Workflow automation
Clause libraries
Reporting
Obligation tracking
Integrations with popular customer management tools
Digital signature capability
Usability
Total cost of ownership
Final results came from case studies, documentation, customer feedback and demos. Each provider received a score based on how well it performed in each category, with features like obligation tracking scoring double points.
Best Contract Management Systems
The CMS you choose can improve productivity, ensure compliance and make a good impression on users. Five platforms lead the market for easy configuration and extensive automation.
1. Agiloft
Founded in 1991 as a business-process automation company named Integral Solutions Corporation, Agiloft was originally a workflow automation vendor. Over the years, it has become a leader in no-code contract lifecycle management (CLM) software, with one of the most versatile sets of contract management products on the market.
The Agiloft platform allows users to customize workflows, approvals and obligations and generates reports without requiring developers to write code. The software extracts metadata using AI tools for advanced searches and analytics and integrates seamlessly with Salesforce and SAP.
Agiloft’s flexibility and history make it a good fit for midsized and enterprise organizations that require control, customization and enterprise-grade security for compliance.
2. Icertis
Founded in 2009, Icertis is based in Bellevue, Washington. The company develops cloud-based enterprise CLM software built on the Microsoft Azure platform for global enterprise compliance, scalability and analytics.
Icertis’ artificial intelligence platform provides a single source for contracts across geographies, departments and business units, monitoring performance, risks and obligations. It is widely used by multinational corporations and others in highly regulated sectors that need governance and analytics.
3. Ironclad
Ironclad was created by Jason Boehmig and Cai GoGwilt in 2014 and has now become one of the largest and fastest-growing legal tech companies. The Ironclad founders set out to reimagine how businesses could easily create contracts. They designed a single interface for workflow and legal collaboration.
In addition to its no-code drag-and-drop contract workflow designer and Clickwrap tracking feature for online transactions, Ironclad has improved its features with AI-assisted redlining and policy management features. Ironclad is a stellar solution for growth-stage companies seeking efficient, easy-to-use CLM software.
4. LinkSquares
Launched in Boston in 2015, LinkSquares was founded by Vishal Sunak and Chris Combs, who built the platform after experiencing difficulty during the acquisition of their company. The platform is a low-maintenance repository with visibility and analytics powered by AI.
LinkSquares allows its users to extract key terms from contracts via post-signature intelligence. It analyzes risks and enables executives to track upcoming obligations and renewals. The simple interface and rapid onboarding have made it popular for companies that want advanced analytics without heavy configuration.
5. ContractWorks
Founded in 2012 and now part of Onit, Inc., ContractWorks simplifies contract management and makes it affordable. The provider provides companies with basic contract management functionality through a centralized repository, role-based access permissions and alerts built into a user-friendly interface.
Compared to more complex implementations, the system appeals to small and midsized businesses for its stability and ease of installation. The parent company, ContractWorks, still supports it as an entry-level product with improved security.
How to Choose the Right Platform
Finding a CMS platform that meets all your needs will give you better control. You’ll master compliance requirements and gain confidence in the contract life cycle, which will help you negotiate better.
Start by mapping your existing processes and identifying bottlenecks. Note who kicks off the contract, where approvals stall and which clauses cause friction. Use demos and trial periods to test each platform with a handful of real contracts. Test the search features, routing and reporting. The right choice should integrate with existing systems and be capable of scaling as your company grows.
Reap the Rewards
Understanding and implementing the main features of a good contract management system puts you ahead of your competitors. Your team can invest in technology that reduces turnaround times, decreases errors, and strengthens cross-department relationships. With streamlined contracts, you can spend more time securing clients. Updated and automatically maintained information prevents costly mistakes.
The right CMS platform optimizes your contracts in an ever-changing global business environment and allows you to focus on the elements that create growth.