Reducing the risk of litigation is an essential strategy for in-house counsel during the contract negotiation process. Litigation costs for a breach of contract are expensive and can include paying for legal fees, attorney rates, court fees, and even trial costs (if it gets that far).
Balancing your organization's risk with the amount of effort you spend reducing that risk is crucial for legal operations teams and general counsels. Using contract collaboration software to redline legal contracts can increase your efficiency while reducing risk, thereby saving you valuable time and money.
3 Ways to Improve the Accuracy and Speed of Contract Review
Implement these three ideas into your contract review workflow to reduce risk and increase accuracy during contract negotiations.
1. Stay on top of risk factors
In today's ever-changing world, new risk factors are constantly being presented that can impact your contract. Stay on top of risk factors such as cybersecurity threats, regulatory requirements, and other emerging threats. Put systems in place that ensure everyone involved in contract negotiations always has the most up-to-date information about potential risks.
2. Use playbooks for consistency
The first way to improve contract review is by ensuring consistency. A contract negotiation playbook is designed to help make reviews consistent across team members in a fraction of the time it would take to use Word or another type of platform.
For example, the following issues could create cash draining risks if they are not addressed:
- Pricing increases
- Warranty remedies
- Automatic renewal
- Liability for late invoices
- Pass through warranties
3. Use contract collaboration software
Redlining legal documents, including contracts, should not be done in Word. Word is prone to user error and can easily cause confusion when multiple people use "track changes" to redline legal language and add comments to a single document. Versioning can be challenging, especially when multiple people are working on the same contract.
In addition to its other features, contract collaboration software allows teams to work efficiently and with a centralized knowledge base. Users can redline contracts and see new edits. Everything is saved in real-time, so all users have access to the most accurate and updated version of a document. You can see a blackline version of a contract instantly.
Try DocJuris Contract Negotiation Software Today
Making the contract negotiation process faster with contract collaboration software will reduce risk because you'll be able to do more with less. Identify new threats as they emerge and use a playbook to ensure that everyone on the team is on the same page.
Using a web-based cloud editor increases negotiation efficiency by 5X. By redlining contracts more accurately, faster, and at greater volume, you can reduce enterprise risk.
Instead of relying on outdated processes, which can slow down the contract negotiation process, trust a contract collaboration software platform like DocJuris. See how it works by scheduling a demo today.