Category: Contract Management

Contract Lifecycle Management

Trends in Contract Management That Defines Contract Lifecycle Management Circle!

The need of adopting technology is to be efficient in Contract Management Services & practices. Digital contract management is here to stay infinite. As lockdown caused remote access to centralized Contract Lifecycle Management softwares, the ways of worklife from which we are familiar with.

New innovative offers and technological advancements are transforming contract management from a routine process to a critical dimension of the business by immense value creation. And the Contract Lifecycle Management circle is the only one who shapes success within an organization. There are two categories that affect the CLM cycle for your business. What are the trends that organizations should be aware of?

On the People Side

Contract Team

Organizations are mainly focused on the team with the right mix of talent to run the Contract Management process. If you’re working on a new software product, it must include the representative of the IT department, vendor department or other team representatives to support. 

Transparent Engagement

All the parties that involved in the contracts are agreed and will be impacted with clauses and commitments together. There should be transparent interactions between the team member and the contract which have to be ironed out.

On the Technology Side

Remote Access

After the pandemic, companies are rushing to adopt the Contract Lifecycle Management softwares. Since the offices shut down, lockdowns, physical distancing, and employees working from home have necessitated the use of them.

This may be a trend gaining momentum to shift the work remotely which promotes the legal process outsourcing services in a loop. Also they can focus on their core competencies, make decisions, and initiate actions for business goods. 

Automation

Automation of the Contract Management Services is a big boon, it abruptly frees the time, removes risks, guarantees compliance and efficiency. 

As the companies grow the volume of contracts does, so, the end-to-end operational procedure of right automation and human intelligence is the way to scale up and ensure business growth.

Artificial Intelligence & Machine Learning

AI has optimized your management strategies and mitigate risks. AI will take shape in the decade to come and how organizations will adopt the same into their operations.

Both AI and ML play an important role in simplifying the contract management process in the future.

Data Privacy

While the online scenario makes the work quick and efficient, it has also caused other problems to erupt. Lack of data privacy, data breaches and cyber-attacks have come in the digitizing journey. 

What would be helpful here is to implement data security proven methods.

Digital Identification

Digital identification mechanisms are required to access data. Whole data is being accessed from anywhere, it makes incorporating identification and verification crucial in the CLM software.
Such trends and several other emerging ones are defining the Contract Lifecycle Management cycle. AEREN completely focuses on your contract services with best security methods. At AEREN LPO, we will assist you in accomplishing your targets- contract review, contract drafting, redlining, risk management, due diligence, execution process, obligation extraction, contract research, compliance, utilizing volume discounts, successfully managing obligations, decreasing contract risks and odds of litigation and diminish your time-to-contract as well.

A New Blend of Artificial Intelligence in Contract Management Services

As you know artificial intelligence is becoming a fast and essential part of the technology industry, which helps in solving many challenging problems. Artificial Intelligence has the ability to make a computer program or software think smartly the same as humans think. In artificial intelligence there’s a use of algorithms, and such instructions that a mechanical computer can execute. This new blend of artificial intelligence is supportive in Contract Management Services.

As we all know, AI has the capability to produce numerous benefits in every sector. Through the blend of AI in contract management helps innovations in every field. It’s adding the greater advantage for automation of contract drafting to extracting important information from already executed contracts. It’s not only speeding up the contract lifecycle, but also improving the compliances and reducing value leakage in every business.

Contract Lifecycle Management

We at AEREN LPO deliver the powered solutions of the AI for data extraction from contracts using their own intelligence and natural language processing technology. We do the data extraction and migrate legacy data into different Contract Lifecycle Management (CLM) systems for tracking and reporting in.

This work involves customizing data extraction requirements for different types of contracts like meta-data, terms and conditions, legal provisions, and obligations. We believe in our Contract Management Services, no software can do the magic alone with the help of our legal experts. There is no existing combination of software packages that deliver a high-quality accuracy which is most required. Human intervention is always needed for stringent quality.

Contract Drafting and Review Services

Contract Drafting And Review Services or extraction is a concern for many organizations. Today leading companies are leveraging AI and hence artificial intelligence and machine learning is also more in demand to automate Contract Management Process.

Artificial intelligence is here to facilitate handling all legal projects, increase productivity in completing long projects with the right resources, run things faster, tracking and searching for any keyword, clause or dates in contract or legal documents. 
Hence Artificial intelligence with Contract Management Services with attorneys in law will be a truly killer combination of brains and speed with no room for errors and unmatched quality.

Contact Summarization Service

Things You Need To Know About Contract Summarization!

As you know, contract summarization summarises the important points using a few words to simplify the foremost relevant terms and clauses of the contract. The complete contract is summarized quickly and efficiently in a pointwise manner for easy comprehension of the key information of the contract. Mainly used for quick rap and review, contract summarization has the following benefits:

  • It saves your time and resources
  • Makes it easier to grasp contracts
  • Facilitates management of contract compliance
  • Assists in tracking down important obligations while acknowledging overlooked revenue or rights
  • Helps in better control of business commitments
  • Provides a concise view of significant clauses
  • Primarily focuses on key terms and clauses

So, we already talked about the advantages of contract summarizations. Now, let’s get into some details on the three major types of contract summarization. 

  • Manual Summarization
  • Automatic Summarization
  • Hybrid Summarization

Manual Summarization

This is the primary, most common, and traditional way of summarizing contracts. It’s best suited when summarization needs close attention from a legal expert to provide detailed and tailored results. It is often undertaken immediately with the assistance of an in-house legal expert.

This is a very easy and valuable way of summarizing when a company contains a small number of contracts that may be handled internally with its resources.

Automatic Summarization

Automation has touched every aspect of the business and contract management isn’t an exception. There are different automation tools and services available within the market to take care of assorted components of contract lifecycle management services, starting from contract drafting to negotiations, execution to renewal, and obligation management.

For the automation of the summarization of contracts, next-generation software technologies are used such as  Artificial Intelligence (AI), Natural Language (NL), and Machine Learning (ML). AI uses a cognitive computer technology platform to computerize the human thought process which involves self-learning systems that use data processing, pattern recognition, and natural language processing to mimic the way the human brain works.

A program is designed to apply different algorithms to make the machine smart enough to perform various tasks based on this cognitive computing. When searching for consistency and speed, automatic summarization is the answer. It can easily handle lengthy and complex structured and unstructured data in contracts and is trained to fetch the best-suited information.

Hybrid Summarization

Like all, both manual and automatic summarization methods have their pros and cons. In the manual method, the volume of contracts is manageable where the human eye is required, for such projects, it’s better suited. Here, automation might take a little longer to finish the project as the initial set-up of time is generally of the same length for any size of the project. However, for a larger project, automation is more suitable keeping in mind the duration, cost, and TAT.

Taking the best of both the methods, both-automation for consistency and workload, cost reductions, and manual oversight for accuracy results in a ‘Hybrid’ approach. The main target remains on software, typically of the vendor’s own design to automate much of the abstraction process. They maintain a team of trained legal professionals with the best Contract Summarization Service experience who do the manual tasks of filling within the missing data and performing quality control

But, Is That the Way You Always Want To Do It?

One of the largest impediments to progress within organizations is the phrase ‘’That’s the way we have always done it’’. Today, technology hasn’t left any sector untouched, and the legal sector is no different when it comes to the processes being catalyzed and made more efficient. 

‘Nuts and Bolts’ of Contract Generation 

Since the advent of technology & digitization, the contract generation process has massively transformed over the years, right from ancient ‘Roman-Greek Empires’ days. Remember the traditional typewriters going – ‘tak..tak..tak..’ typing lengthy contracts and then runners or logistics services carrying them across?

Then came computers, which not only made the process of contract generation faster but also reduced the burden of huge piles of wasted contract papers. Computer applications made typing more convenient, emailing made quick suggestions, red-lining & changes easier while electronic transfers saved a lot of time & our runner boys and girls a lot of effort. And Ta-Da! 

Now imagine, if organizations were still stuck with the rudimentary processes and insisted that contract generation should be the way they originally were – ‘’That’s the way we have always done it’’ – where would we be?

Eventually, there stands no need to print, sign and scan contracts anymore, all thanks to electronic signatures. With the COVID-19 pandemic, eSignatures have streamlined the contracts processes much more as it became the standard way to sign contracts.

How Contract Management Has Evolved

Well, rapidly evolving technology has made even the most fascinating contract management processes a history, laying down the path for groundbreaking AI, ML, etc., and revolutionizing this entire domain. From the moment a contract is verbally discussed, to the time it expires, the entire life cycle of a contract is now managed by the right mix of top-notch technology and human touch. 

Harvard Business Review, in 2018, estimated that inefficient contract management causes firms to lose between 5% to 40% of their value on a given deal, depending on circumstances. Despite such benefits, many organizations have still not implemented a centralized contract management approach. Why? In many cases, it’s simple because ‘’That’s the way we have always done it’’!

The way contract generation has evolved, contract lifecycle management has evolved too! Ever-evolving technology has automated the entire process and shrunken it down to reduced human intervention as well as bare minimum errors.

The amalgamation of technology and human expertise has significantly improved and streamlined the contract management process right from creation and tracking of templates (and individual clauses within those templates) to the creation of every contract through contract review, approval, execution, performance tracking, renewal, and (eventually) expiration.
Efficiency due to technology and human expertise isn’t only about innovation, but also about automation. When it involves the management of contracts, the excuse ‘’that’s the way we have always done it’’ might just be pulling an organization’s efficiency down. So here’s a food for thought? – ‘don’t get stuck in the old ways of how you have always done it. Evolve your contract management process and ace yet another domain!’

Can AI Contract Review Replace Human Intervention?

Augmentations in Artificial Intelligence (AI)  is what the world is glued to. At present,  there is an increase in workload to ensure both transparencies as well as transformation. To cater to this ever-increasing demand,  humans must continue to work parallelly with machines. This amalgamation of human knowledge and machine learning is what most people are excited about. But are we ready to throw all this workload on the machines without any human intervention or have we accepted that machines are more intelligent than humans? In short, the answer is NO! While technologies like artificial intelligence have a huge impact on shaping today’s world, however,  they are meant to complement human capabilities, not replace them.

Maybe if we rephrase our original question of “who is smarter?” with “what kind of synergy will humans and machines create?”, we will have a more sensible and sustainable solution.  

What Role Will AI Play in the Legal World?

AI technologies increase computing power to deliver faster and more accurate or enhanced voluminous data sets. With legal expertise, AI technologies can be utilized to create a game-changing experience. 

The legal system is vast and constantly changing, but with the use of AI, attorneys get insight into the legal domain within a second. For any legal research, a significant number of man hours are required which automatically reduces the profit for a law firm. And this is exactly where AI does its magic. AI provides highly efficient and advanced tools that cater to the needs for advising and litigation. Artificial intelligence has made legal services smarter, efficient, and perfectly easier and bearable.

Can AI Mean Zero Human in the Field of Law?

AI without human interference would look like a child operating a remote car. An AI software is fast, easy to operate, keeps track of everything, and finds you even if you are lost.  However, like a toy, without actually using it where it is most needed, it will remain a fancy tech tool. The AI is most used in contract management services, as well as in managing document review services. How to make the best use of AI tools has to be decided by an attorney to reap the best benefits for your business.

AI in Contract Review

As everyone knows, contracts are kind of engines of every business which drives growth and tackle critical obligation and opportunities in business. Attorneys too spend thousands of hours reviewing contracts. Even in the digitized world, quick TATs may lead to errors in missing some obligations. So, machine learning can make the process more efficient and effective. With human intelligence and AI technology, the legal industry is now equipped to:

  • Review and analyze the big data with high-level knowledge in the form of a contract repository
  • Draft contracts on existing data according to the situation
  • Summarize, analyze the contract clause data/metadata to identify risks and running problems.
  • Translate contracts in other languages

The combination of AI and the attorney team perform robust quality checks to collect the contractual data into a structured form. Today, ML tools help us work with small teams and delivers reports by adding value to contracts with improved speed, accuracy, and efficiency. Human intelligence is also required that who shape up the emergence, adoption, and innovation solution. Human interference is necessary for the ‘why’ and ‘What if’ critical situations. Human oversight, expertise and quality assurance by the human brain are essential in using AI-generated outputs.

Complementing Each Other

Human is more active in making the decision and AI is foremost in performing the best in technology task. The smart combination of AI and humans can complement their respective skillsets to help businesses scale faster and better. When human expertise is systematically injected into AI technology, AI becomes more accurate and gives the best results.

Wondering How To Make Your Key Clauses in Contracts Fool Proof? Read This!

If you want to make another person or a corporate body bound by certain terms and conditions, it is preferable to enter into an agreeable contract with them. Drafting a contract or Contract Management Service is not such an easy task. Each contract is different from the other as contracts are customized and drafted in accordance with the needs of the clients. However, there are some clauses that are a must in every contract.

A well-drafted contract is easily understandable whereas badly drafted contracts result in ambiguity and result in wastage of time in understanding the intention of parties. The most crucial factor to consider while drafting contracts is to make them straightforward and easy to understand. A virtuous contract should be free of loopholes and must cover all the important clauses that are vital to the agreement.

From the initiation process to finalizing the contract, it is just a matter of a few key steps. This involves understanding the clauses and their rationale so you’ll be able to negotiate them effectively. Let’s have a look at some clauses you should mandatorily have in every contract.

Confidentiality Clause

This clause is drafted to protect confidential data like business secrets to preventing any disclosures or leaks. As per Indian Law, Confidentiality bounds involved parties to ensure and agree on the specific information that is equipped by one party or all involved parties will remain confidential.

Generally, the best idea is to keep the definition of confidential information as wide as possible. Marking certain documents ‘Confidential’ will help restrict crucial information from getting leaked out. The term ‘confidential’ includes all information shared, mode of sharing whether written, electronic or oral, or any information shared with the third party.

Jurisdiction Clause

This clause in the contract will specify the appropriate jurisdiction that will be applicable to both parties in case a dispute over the contract arises. It determines the particular state whose law would govern the contract. Parties are able to choose their local jurisdiction depending upon the negotiation rounds for the purpose of the lawsuit. 

Dispute Resolution Clause

This clause refers to the mode in which if any dispute takes place between the parties will be resolved. Even the most well-drafted contracts are suspective of conflict. It is common for firms to include Arbitration Clause prior to the litigation process. Arbitration is an out-of-court mechanism. This is a faster and cheaper way to resolve contract-related problems that arise rather than traditional legal recourse.

Limitation of Liability Clause

This Clause at RIsk Free Serv Water Damage Repair San Diego specifies the fixed amount that a party will be bound to pay in case of any breach, failure of performing, delay, or any other condition. Limitation of Liability helps a party to assess potential liability and take adequate insurance to cover such risks.

Indemnity Clause

An Indemnity Clause is a mutual transfer of risk between two contractual parties to prevent loss and compensate for the loss which occurs as a result of a specified event. This clause is a tricky yet profitable provision that allows parties to manage the risks, by making one party pay for the loss suffered by the other. Make sure to pay attention while drafting this clause in the contract.

Terms of Payment Clause

A Payment clause is an extremely critical component of all agreements. Whenever drafted a payment clause you should consider the mode of payment, or the payment being made in installment or in advance, also the clear timeline of payment.

Every contract must specify the relevant terms and conditions to avoid uncertainty or increasing risk of misunderstanding which leads to the unnecessary cause of litigation. Learn more about contract management services and solutions visit our website www.aerenlpo.com

Contract Management Framework For 2021- An Insight Into The New Year Of Contracts Amidst The Covid-19 Anniversary

Contracts are in themselves risk mitigators at the best. Contracts are carefully tailored and rendered out to cover losses and bring a sense of clarity, workplan, and legal solutions to, for and against every action drafted in every line of a contract.

Even so, that being said the year 2020 made contracts take a step back, analyze, re-plan and move ahead in a resolution to continue its value even when certain things of the very foundation of our economy were crumbling around. Grappling with non-performance became the numero uno in this global pandemic.

This leads us to the question, how can we turn 2021 into a year of contracts that are protected and relied on their value, come whatever may. Also, reviews that are fast, accurate, reliable, flexible, and secured with e-discovery forefront.It’s more right when said contracts equal actual money gains and losses for the business. Thus, contracts solely determine the course of every business and its continuity plans.

The legal scenario is no more into resisting changes in collaborating and prepping to the fast pacing of things that make the legal domain a vast unexplored market. A contract management framework that binds the growing changes in work scenarios, new communication modes, and leveraging it with the experience of its legal workforce and technology that enhance to keep everything and everyone streamlined and collaborated with definite end goals is the key to manoeuvring 2021 into an all weathered and robust legal management.

AI and Automation are all about doing much more and to expect nothing less.

The litigation front in this world is at an all-time high than it was in the previous decades and it will keep growing more with everyone coming under a common global audience. The lines have broadened with none being confined to a pre-determined space. So litigations crossing boundaries are directly in proportion to the digital data that goes into the process.

The Legal AI process is more of finding ways in making brilliant progress to legal data handling in every phase of contract management, making intelligent reviews with http://maideasyaz.com technology innovationassistance and intellectual minds working in complete collaboration, will make 2021 and after an interesting legal era.

At AEREN LPO, our legal workforce making the most of 2020, with the trusted and dependable all-around assisting of our clients to achieve the best results amidst the challenging pandemic, we offer to deliver pro-COVID-19 revolutionary solutions that make our clients have resilient legal solutions.

Contract Management Through The Eyes Of 2020

The year 2020 turned out to be something we didn’t expect at the new year beginning. Slowly before we realized it, everything just went on downhill with COVID-19 taking over the world literally.

The sudden shift with the COVID-19 threw much business out of their helm in an initial couple of months before the world economy still reeling under the effect, but composed and steering in the right direction before we begin the next year.

The effects may linger, but now we are more prepared and sensitized than we can ever be on the first day of 2020. In the business and litigation world, the waves to hold on came through business continuity and force majeure clauses which were quickly analyzed, reviewed, and moderated to make the best out of 2020.

How Contract Management Made 2020 Manageable for Contracts

Business Continuity Plans

Contracts were reviewed and analyzed in sync with changes and updates with the business continuity measures an organization took to overcome the challenges of the COVID-19 pandemic. This made contracts more reasonable, effective, and secured from the potential risks that it might pose.

Litigation Support

With the turn of the new pandemic effect, non-performances and amendments to deadline took a major role in every organization which saw clients and organizations encountering losses to file for litigation and find measures to tackle the obligations. Comprehensive contract management helps support litigation and at times provided the means to tackle and confront obstacles.

Work From Home

Work From Home became the new normal and contract obligations moving to homes rather than in workplaces made security a huge concern. However, with the best in technology through the cloud and centralized repositories, Work From Home became more feasible and manageable.

Force Majeure

Force Majeure became definitive worldwide to protect the business, avoid risks and loss in costs much more than expected. The organization analyzed contracts which on an urgent basis suffered from non-performance due to the global lockdown and moved to be protected under force majeure and other contract obligation protective clauses.

Globally Interlinked to Virtual Assistants

Contract Management workforce connected virtually to work in collaboration to adhere to contract terms and conditions. Virtual Assistants chipping in at the right turning points cushioned the effects of backlogs, lockdowns, and pandemic severity more bearable. The cost factor was also hugely impactful in making quality, strategic, and time zone advantageous decisions.

E-Signatures

E-signatures became more widely used and effective with the global lockdown and countries closing their lines. Businesses and clients’ contracts, across their geographical area of business interest, were carried out most effectively, easily, and quickly through e-signatures. This enhanced the whole contract management experience.

With the year 2020 coming to an end, we can see, we had become stronger together even while locked in our places and maintaining distances. We adapted to technologies, modern kitchen remodeling projects, measures, and new workforce ways which made work continuity possible both at Work From Home and at our offices with new government guidelines and regulations. By 2021, we look forward to solving any kind of challenge with even more grit for solutions which 2020 has taught us every day.

Visit our website at www.aerenlpo.com for queries on legal services and solutions.

Vendor Contract Management- A Legal Compliance Tie-UP With Your Valued Clients

Vendor Contract begins by enclosing all provisions and conditions for the vendors of their rights, duties, performance metrics, and obligational responsibilities to all the range of services and solutions in a representative way of a legal agreement between the vendors and their clients who require the use of the respective vendor products or services.     

Vendor Contracts have great utility in maintaining clear cut performance goals with the convenience of using it for the duration of the contract. It excludes one from all liabilities by adhering to the details that will be included carefully and organized to keep the vendors from liabilities. This reduces the chances of any risks occurring in the future towards litigation or payment technicalities.   

What can your clients derive from the Vendor Contracts they agree to sign to? Here are the take aways from a meticulously drafted vendor contract:    

Scope of Vendor Contracts

The scope of the legal agreement betweena vendor and a client in defining the key clauses, terms, and conditions that become inclusive in the Vendor Contract depending on the purpose or intent and the given range of services or solutions it covers. This brings about clarity of scope, purpose, obligations and risks being accepted by both the parties while entering into a legal arrangement.

Payment Modes, Billing & Reimbursement

A Vendor Contractequates services and solutions by time or limitations of use regarding payment modes. A clear and unambiguous method of reimbursement by billing will enhance the user experience in evaluating the service and solution to the pre-determined costs and expectations of use.

Laws of State

A Vendor Contract collaborating across geographical boundaries ensure to adhere to global compliances and respective laws of states and countries to broaden your products/services to a diversified client market.

Statements of Work

A Vendor Contract is a legal agreement while a Statement of Work(SOW) precisely defines the working criteria of the product or service in every level of performance details and delineating exactly what is expected from the performance.

Limits of Liability

Limits of liability determine what should be considered as an alternative solution in the event of a non-performance or other reason viz-à-viz the service or product obligations and who will be held responsible and till when, depending upon the termination or renewal of the vendor contract.

A Vendor Contract is a complex legal agreement that takes into account many factors that weigh in while performing the obligations with respect to a product or services for the use of clients. Visit https://www.radfordgaragedoor.com/. Managing the vendor contracts and the related SOWs in a business is vital in analyzing their market value, clients’ details, timelines, pricing and payments of every product or services.

AEREN LPO’s contract management experts in their decade-plus experience are glad to assist you in conforming to the standards when it comes to your Vendor Contracts to assure the best opportunities for your business.

Visit us at www.aerenlpo.com.

Contract Close-Out Services-A Step Towards Complete Contract Performance Evaluation And Release

Contract closeout is a necessary step in the direction of bringing the much-needed closure armed with a complete checklist of doing things right in all your contracts. Every contract operating towards an obligation in meeting all the requirements deserve a proper contract closure.

Legally, contract close-out services entail the complete checking for a contract once it meets all its terms and conditions, solving any arisen disputes in the course of the contract, and monetary obligations, in whether terms of payment are fulfilled. Evaluating to finalize a contract close-out services is the right measure in sealing the value forthcoming from every contract and maximizing benefits in many ways.                  

Contract Completeness

The first step towards ensuring a contract close-out is to verify and analyze for contract completeness in every clause, compliance, and detailed review of all terms and conditions.

Close-out Documents

Verify and fulfill all mandatory measures in handling document gathering, filing, and production at the time of the contract close-out. Any missed relevant documents might hide the actual contract value or obligation or sometimes escalate to compliance issues.

Unresolved Issues

Before the contract goes to close-out, one needs to closely monitor and identify unresolved issues, if any. Minor issues, if not addressed and left unnoticed, might very well end up in legal entanglements for a contract in a close-out and might prove to be a hassle in regulatory compliances.

Payment Procedure

Payment options at any stage, whether initiation, term payment, or a complete upfront, the payment invoices need to be cleared or laid out for all the stakeholders to value the contract and allrelatedpayment procedures that need to be outlined and adhered to stipulated norms and necessities.

Identifying Special Provisions

Each contract under the law is implemented with some special provisions when created, according to the specifications made to bring out the complete performance of the contract. Before a close-out, the contract will be evaluated relative to its performance and non-performance to the expected contract standards.

Getting to The End of a Contract Close-Out

Making certain every involved party from the contract with their responsibilities and obligations fulfilled respectively to the means to the end, and with any circumstantial situation, alternatively evaluated for new changes or updated with new regulations, blue skies services of cincinnati, the contract can be closed and always ensure the records are retained for a certain period depending on the cause and need.

AEREN LPO contract close-out services are tailored to perfection with our contract management experts coordinating a comprehensive project performance carrying out a detailed extensive review to every finest detail, revisions, and contract audit with well-designed reports.

Call us today to learn more about our legal services and solutions.