What is Contract Analysis?
Let’s discuss why contract analysis needs to be a critical part of your contract management process.
Contracts are legal agreements that act as a framework for how your business runs. But are you getting the most out of them? While we all put effort into negotiating and drawing up contracts, they are all too often neglected after they’ve been signed. For your business to run efficiently, contracts need to see the light of day more, instead of only being checked after something has gone wrong.
Why Contract Analysis Matters
Contract analysis can add value to your business’s bottom line because contracts are the foundation of all business cooperation. Think of them as the software for business. We all know “bugs” in software cause machines to operate ineffectively. In much the same way, contracts can have errors that sap profits from your business. Such errors include;
- Unforeseen edge cases that weren’t addressed
- Clauses that aren’t specific enough to provide an effective outcome
- Lack of provisions for dispute resolution
- Inadequate protection against liabilities and termination effects
- Outdated language that hasn’t kept pace with modern developments
- Contracts that need to be changed to reflect a new law or regulation
- Unforeseen conflicts between several existing contracts
- Lack of a defined lifecycle
Some of these problems stem from a lack of adequate contract visibility and oversight. During the negotiation process, not having instant access to your contract library puts you at a disadvantage because you can’t see prior agreements to get a feel for what’s a fair offer.
Even if a contract is airtight, many more problems can arise if your company mishandles contract management. These mistakes are very common among even the highest-grossing enterprise businesses and are often easily avoidable. Such mistakes include:
- Miscommunication of responsibilities
- Missing deadlines and time windows
- Overshooting termination dates
- Underestimating costs of fulfillment
- Lack of insight into crucial contract terms
- Overextending the company’s capacity to fulfill contracts
- Failing to renew expired contracts
- Accidentally renewing contracts that have outlived their effectiveness
- Missing opportunities to renegotiate better terms
- Taking too much time to review contracts
- Ineffective contract risk management
- Lack of centralization causing wasteful handling
If any of these sounds like a mishap that your company has experienced, you’re not alone. Many companies have experienced painful losses due to poor contract handling and ask if there’s a better way.
AI Automation: The Better Way To Manage And Review Contracts
Artificial Intelligence (AI) has entered the domain of business contract management. We’ve all seen software that helps compose, build, transfer, or otherwise inventory contracts, but using AI in this space allows for even more.
Evisort is a complete contract management platform that utilizes AI to change the game. It uses a Deep Learning AI system trained in legal contract language to automate the process of manual tagging, data entry, and logging of contracts. It serves as a centralized repository for all your contracts with integration for all common office tools to allow easy import, export, and access to your contract library.
Evisort also enables you to search and compare contracts by terms, clauses, and any data points you use. The system can even learn to tag new clauses you teach it and set up rules for handling new clauses. It can even apply new rules to all existing and future contracts.
Evisort’s Unprecedented Artificial Intelligence Versatility
Evisort is fluent in over 100 contract types, capable of scanning, tagging, storing, and analyzing many different categories of contracts, including:
- Client agreements
- Vendor agreements
- Employment contracts
- Lease documents
- Loan documents
- Investment documents
- Work orders
- Purchase orders
- Compliance agreements
- …and more!
Evisort puts all of your contract data at your fingertips by letting you search through your entire library in a matter of seconds to find important information such as:
- Party names and contacts
- Service, beginning, expiration, and renewal dates
- Agreement terms
- Payment terms
- Non-compete clauses
- Non-solicit clauses
- Governing laws
- Limitations of liability
- Lease abstraction
- …and many more provisions!
Total Contract Visibility
If you handle contracts and are in charge of review, ask yourself: How many hours have you burned reading through pages of contract legalese? Evisort gives you an automated system to reduce days of work to mere seconds. You will never have to manually read a contract again.
Evisort imports contracts from any source, from local hard drives to software like Sharepoint and DocuSign to scanned-in paper. It can also export document data to common office tools, allowing you to turn complex contract data into simple graphs, spreadsheets, and visual data for easy communication.
Automating contract management helps you on an executive level as well. By leaving the drudgery of grunt labor up to the software, you’re free to spend your time deciding what to do about the data instead of tagging it. By integrating with other office software, Evisort expedites teammate communication, helping collaboration and making it easier for your whole staff to stay in the loop. Teammates unfamiliar with Evisort will still be able to reap the benefits through the tools they are already used to.
But even more importantly, Evisort, when used as part of a comprehensive contract analysis process, helps you avoid the natural human errors that arise from manual contract review. This helps reduce risk because errors in managing contracts can result in costly pitfalls.
What Can Efficient Contract Analysis Do For You?
Evisort helps businesses in more ways than can be covered here. Some of those ways include:
- Identifying and mitigating risks
- Reducing costs of review and fulfillment
- Streamlining workflows
- Protecting against legal snares
- Helping with planning projects
- Helping manage vendors and procurement
- Identifying compliance issues on both sides of the agreement
Evisort’s AI based contract management process instantaneously extracts and uploads key information to the platform making it available for viewing at any moment. Contract expiration alerts mean that analyzing contracts for hours on end is now a thing of the past. The machine learning capabilities allow you to streamline and automate labor intensive practices and maximize revenue by reducing costly ramifications of poor contract management.
Once your company gets to experience more agile contract analysis and the results start showing up in your KPI, you just might start feeling more confident in taking on new business commitments. Setting up new deals becomes much easier when you have your entire contract library at your fingertips during negotiation. You can then operate more efficiently and take bolder steps in growing your business.