Contracts are the backbone of any business and negotiating them can be a complex and time-consuming process. Depending on the size of your company, you may have multiple contracts in negotiation at any given moment. The continuous revisions during negotiations can lead to oversights and misunderstandings, which might prove costly in terms of both time and resources. To mitigate these risks and ensure smoother contract management, incorporating version control and redlining through contract management software can be a game-changer.
The Solution to Contract Chaos
Version control and redlining are powerful tools that safeguard against mistakes and confusion that often arise from dealing with multiple paper contract versions. With version control, all contract versions and changes are centralized in one location, making it easier to identify and manage the latest iteration. Additionally, contract management software often employs a “check-out” process, enabling users to avoid simultaneous changes and see who is currently reviewing or making alterations to the contract.
Redlining is another crucial feature offered by contract management software. When a user checks out a contract for review, redlining automatically tracks any changes made to the document. Once the desired modifications are completed, the user saves the document and “checks-in” to accept the changes. Version control then provides a time stamp indicating the most recent changes to the contract. This clear display of deletions and additions significantly reduces the difficulty of reviewing multiple paper versions.
Boosting Productivity, Collaboration and Efficiency
Implementing version control and redlining in contract management can lead to a significant boost in productivity. Having all the changes in one place and easy access to previous versions eradicates confusion and delays. No more searching for the correct paper contract or waiting for hours to receive an updated version for approval. With these tools, users can access all contract versions with a few keystrokes, ensuring that everyone is working off the most up-to-date iteration.
The benefits of version control and redlining extend beyond internal teams. External users can also be granted access to electronically stored and edited contracts, promoting smooth collaboration, and preventing delays between parties. This shared access ensures that all parties are on the same page and working towards the same outcomes.
Whether your business is handling multiple contracts or just one at a time, version control and redlining offer numerous advantages that lead to better time management and increased efficiency in the contract management lifecycle. Quicker approvals and smoother transitions from contract negotiations are just some of the benefits that can be reaped by adopting these technologies.
In today’s fast-paced business landscape, efficient contract management is critical for success, especially for industries like Healthcare. Healthcare organizations often deal with a substantial number of contracts, including agreements with medical professionals, suppliers, pharmaceutical companies, research partners, insurers, and technology providers. Inefficient contract management may lead to errors and oversights, potentially exposing healthcare organizations to financial losses, compliance issues, and legal liabilities. According to Black Book Market Research, “Healthcare providers in the U.S. spend $157 billion each year to manually manage their contracts. That’s because 96% of healthcare providers have not yet automated their contract management.” [1]
Redlining is a widely used legal tool in the healthcare industry to track contract changes and facilitate review by legal teams and compliance officers, ensuring contracts align with regulatory requirements and protect patient data. Healthcare contracts often involve sensitive information and patient data, making redlining an essential feature to ensure compliance with data protection laws, such as the Health Insurance Portability and Accountability Act (HIPAA).
Embracing version control and redlining through cloud-based contract management software such as AffableBPM solution can streamline the negotiation process, eliminate confusion, enhance collaboration between internal and external teams while aligning with regulatory requirements. By doing so, businesses can maximize productivity, avoid costly mistakes, and achieve more favorable outcomes in their contract negotiations. So, ask yourself: How are you managing your contract management lifecycle?
[1] https://www.contractlogix.com/contract-management/contract-management-system-in-healthcare/
