A missed deadline. A forgotten renewal. An outdated clause.
These aren’t just small mistakes. They’re costly risks. Poor contract lifecycle management can slow deals, hurt relationships, and damage your bottom line.
The good news? With the right tools and strategy, you can turn contracts into a source of control and confidence.
Here are the top ten best practices for legal contract management. Follow them to ensure efficiency, compliance, and risk reduction. These rules apply to law firms, corporate legal teams, and any organization that handles contracts.
1. Centralize Contract Storage
Stop chasing files across email, shared drives, and dusty filing cabinets. Store every file in one secure location.
- Use a single repository to store all contracts. This could be a document management system or secure cloud storage.
- Implement clear naming conventions for easy retrieval.
- Put in place role-based access control. Make sure only authorized personnel can view or edit sensitive contracts.
- Maintain a version control system to track changes and maintain an audit trail.
With Filevine’s contract management tools, you can organize, search, and retrieve agreements in seconds. Role-based permissions keep sensitive data safe while version control tracks every edit.
2. Standardize Contract Templates
Consistency saves time and reduces risk. Create standard templates for common agreements like NDAs and service contracts. Build a clause library with approved legal language.
- Create approved contract templates for common agreements. Common ones might be NDAs, vendor agreements, and employment contracts.
- Use clause libraries with pre-approved legal language.
- Define clear approval workflows for exceptions or custom clauses.
Filevine helps you create, store, and manage all your templates. It makes sure your team always works with the latest, most accurate documents.
3. Track Key Dates and Obligations
Missed renewal dates or compliance deadlines can cost you. Set automated reminders for renewals, termination notices, and deliverables.
- Set automated alerts for:
- Renewal deadlines
- Termination notice periods
- Compliance reporting dates
- Use contract management software to track performance obligations. Pay special attention to delivery timelines and payment milestones.
With Filevine, important dates sync automatically and trigger alerts—no manual tracking required.
4. Implement a Clear Review and Approval Process
Manual reviews slow deals down. Define clear approval workflows. Assign specific roles for drafting, contract analysis, legal review, finance, and sign-off.
- Define roles and responsibilities for each stage:
- Drafting
- Legal review
- Finance approval
- Final sign-off
- Use digital workflows to speed up approvals and maintain a record of decision-making.
Filevine automates these steps, keeping everything moving and visible.
5. Stay Compliant and Reduce Risk
Regulations change fast. Contracts need to keep up. Tag agreements by risk level and link them to relevant compliance requirements like GDPR or HIPAA.
- Map contracts to regulatory requirements such as GDPR, HIPAA, or SOX.
- Conduct periodic audits to ensure obligations are being met.
- Tag and classify contracts by risk level (e.g., high-value, high-risk).
Filevine makes it easy to audit and report on compliance from a single dashboard.
6. Adopt E-Signatures
Waiting for physical signatures is outdated. Adopt e-signature technology to finalize agreements quickly and securely.
- Use software with built-in e-signature functionality.
- Ensure compliance with relevant e-signature laws such as ESIGN Act or eIDAS.
- Store signed documents automatically in the centralized repository.
Filevine’s contract lifecycle management software makes e-signing easy. Sign documents from anywhere, using any device.
7. Regularly Review and Update Contracts
A signed contract isn’t the end. Review agreements at least once a year to check for outdated terms, pricing changes, or new risks.
- Schedule annual or semi-annual contract reviews to:
- Identify outdated terms
- Adjust pricing or service levels
- Address new regulatory changes
- Maintain a contract lifecycle policy that defines when to renegotiate or terminate agreements.
Filevine’s reporting tools make it easy to track contract performance over time.
8. Leverage Technology and Automation
Manual contract management eats up time and invites errors. Contract lifecycle management (CLM) software like Filevine is more effective. It automates workflows, lets you search by metadata, and integrates with your CRM or ERP systems.
- Use contract lifecycle management (CLM) software to:
- Automate approval workflows
- Search contracts using metadata
- Generate reports on contract performance and compliance
- Integrate with other systems like CRM or ERP for better visibility.
Go further with new AI technology.
AI contract analysis can help you quickly make sense of key terms, clauses, dates, and amounts from contracts.
9. Train Staff and Stakeholders
Tools only work if people use them correctly. Provide training for legal, sales, and procurement teams. Create clear guides and playbooks so everyone follows the same process.
- Provide training on contract policies and tools for legal, procurement, and sales teams.
- Create guidelines and playbooks to ensure consistent contract handling.
- Encourage a compliance-first culture within the organization.
Filevine offers intuitive workflows that make adoption easier for everyone. Substantial training and support materials help your team get the most out of their tools.
10. Measure Performance with KPIs
You can’t improve what you don’t measure. Track metrics to evaluate and improve the contract management process, such as:
- Average contract cycle time
- Number of missed obligations or deadlines
- Percentage of contracts using standard templates
- Renewal rates and revenue impact
Filevine gives you real-time analytics to monitor performance and uncover opportunities for improvement.
Great contract management isn’t just about avoiding risk. It’s about driving growth, closing deals faster, and building stronger relationships.
Filevine’s legal contract management software combines powerful automation with intuitive design. It helps teams stay organized, compliant, and ready to scale.
The bottom line: Centralize, standardize, automate—and watch your contract process transform.
Ready to upgrade your Contract Management process? Demo Filevine’s CLM today.