Contract metadata extraction is a key to successfully mitigating your risks, managing your obligations, and even finding money! What if there was a penalty clause that you had forgotten, and could result in imposing performance penalties that would be due? What if your vendor had a reporting obligation, or an obligation to decrease your costs if the volume goes above a certain limit? Having handy access to the terms, legal provisions, and obligations outlined in your executed contracts is key to running a successful business.
What is Contract Metadata?
It is the important data from contracts or underlying documents, it can be further described as the content by a set of fields and values so that one can get structured data from a contract that can be stored for various important records.
Do you truly know what the clauses, provisions, and terms that are buried inside your legacy contracts say? For most organizations, the answer is: NO
Extracting key data elements from your legacy contracts is not an easy chore. Consider that when the documents are stored in bulk, scattered across multiple folders it can cause chaos in finding particular documents when required. If asked for an attribute from a specific contract, finding it from within thousands of contracts is incredibly difficult and time-consuming. By the time the attribute is found, acting on it may be too late! Doing this effort manually takes an enormous amount of time, money, and resources as you would need to open every contract (which in itself is a time-consuming task), search through the full document through various types of language, and copy and paste it into your spreadsheet.
Studies have shown that to extract any given attribute, especially since most often, there will be agreements as well as associated companion documents, it takes about 2 minutes per attribute. If you extract, 30 metadata elements, it would take a half-hour for each contract. If you have 10,000 contracts, it will take 5,000 person-hours. Then factor in quality control, checks, document organization, OCR software, etc., and other processes that need to be in place pre-and post-extraction. Such an effort for 10,000 documents can take about 8,000 person-hours. Understand from the use-cases how Brightleaf helped Class 1 Railroad Company
How Brightleaf can help?
Brightleaf provides a technology-powered service to extract information from your contracts using our own proprietary semantic intelligence/natural language processing technology, our own team of lawyers to check the output, and our own Six-Sigma process to deliver end-to-end, highly accurate, extracted data from your contracts. Your legacy contractual documents along with this extracted meta-data can be migrated into a Contract Lifecycle Management (CLM) system for tracking and reporting.