Contracts are an integral part of any business relationship and staying on top is critical. Automated abstraction gives legal, contracts, and procurement professionals the ability to efficiently and cost-effectively abstract key information from their contracts and improve how they manage contractual obligations.
Contract abstraction simply means extracting important data points which include clauses, dates, meta-data from your contracts. Abstracting essential information from your contracts will help you manage and identify existing contractual commitments. Additionally, this will enable you to analyze risks, obligations, and opportunities to avoid potential legal disasters.
Signs to know you are ready
Working In silos
The larger the company, the more the divisions, the more these divisions, work in silos. This can limit the contract visibility. Silos can deepen and become a drag on growth, having access to a centralized contract management system with extracted metadata for a quick review can help overcome the problem.
Laborios Contract Review
If you have more than a few hundred contracts and need to abstract several different attributes, it’s laborious. It demands planning, oversight, and lots of error checking. Doing it manually requires covering every word of every contract.
If your contract has expired and you are unaware of it, you are vulnerable to compliance, audit, and many other legal risks. Being careful of what’s in your contracts, allows you to renegotiate terms before they expire, and safeguard you from any gaps or delays on your projects.
A sales representative spends a lot of time negotiating, reviewing, & obtaining approvals during the contract execution phase, there are chances that you might come across a few changes. Say, if a changed renewal or expiration term gets unnoticed by your sales team, it could lead to loss of revenue or a valuable client.
Schedule a demo to learn how you can accelerate your contract management processes with contract data abstraction services.