Part 2 in our series on contracting processes best practices...

 

Contract Execution Method

Base Line

Original documents are manually signed (wet ink signature) and mailed.

Advanced

Original documents, stored electronically, are emailed or faxed, printed to paper and signed.

Best In Class

Documents are created, stored, transmitted, and executed electronically in a 100% paperless process.

 

Contract Storage, Searching, Reminders and Metrics

Base Line

Paper contracts are stored in file cabinets and must be manually searched.  No reminders electronic or otherwise or contract metrics.

Advanced

Electronic storage with electronic searching of contract header data and electronic reminders of upcoming contract expiration.  Some minimal contract metrics available.

Best In Class

Electronic storage with electronic searching of contract header data and document free text searching with electronic reminders of milestone events such as expiring certifications, contract renewals, etc.  More complex contract metrics available.

 

Legal Team Involvement in Contract Changes / Edits

Base Line

Legal team required for all changes for all contracts.

Advanced

Legal team advice is in contract MS Word file (must be removed before executing) or stored in separate offline document.  Legal team often relied upon for routing changes.  Use common clauses in MS Word files.

Best In Class

Legal team advice is accessible from MS Word file, but not a part of the file.  Standard pre-approved language and fallback / alternate clauses available permitting legal to intervene on exception basis only.