The Evolution of Contract Management to Blockchain-based Systems

Contract management is moving from manual or web-based contract management solutions to blockchain-based systems. Smart contracts are faster and easier to execute, making it likely that they will gain more adoption as the years go by.

Contract management is a core business process. Most organizations have to deal with a wide range of documents. Large enterprises may be responsible for handling hundreds or even thousands of documents on a daily basis. 

Understanding contract management fully and tailoring existing processes to achieve greater levels of efficiency can have significant positive results in terms of employee time, resources, and client conversions. 

In this article, we’ll answer several key questions related to the topic of contract management. We’ll define the process in depth, look at how modern software can help streamline existing workflows, and review some of the top apps in the space. Lastly, this article considers how blockchain-based smart contracts are changing the contract management landscape.

What Is Contract Management?

Document management is a straightforward but multifaceted process. Because it impacts key outcomes within a business, like prospect-to-client conversions, contract renewals, client value, and so on, it’s important that organizations have clear operating standards in place. 

Generally speaking, contract management is split into three stages:

• Document creation – Document creation refers to the drafting of a contract, proposal, invoice, purchase order, etc. This stage also includes its internal approval within an organization. Multiple individuals, like legal experts, managers, and accountants, may be involved in this process. 

• Document sending and tracking – After a document has been generated and approved, it is sent to a prospective or existing client for signing. Typically, an organization will use analytics software to track recipient behavior, allowing it to send reminders and follow-up correspondence accordingly. 

• Document management and storage –  Once a recipient has approved a document, it should be stored securely online, where it can be checked if any issues, legal or otherwise, arise. Companies will need to track document expiry dates with a view to renewing contracts and the like when appropriate. 

What Is Contract Management Software?

A contract lifecycle management (CLM) solution is a computer application, usually offered as a software-as-a-service, that enables businesses to manage and streamline practically all aspects of their document workflows.

Users of contract management software have access to a range of features, including a document editor, electronic signature fields, analytics (particularly for recipient tracking), automation tools, secure online storage for documents, and more.

The market offers a wide range of contract management apps, with dedicated solutions for small, medium, large, and enterprise-level organizations. Freelancers and individuals can also take advantage of contract management software for minimal cost, with many long-term free plans available. 

CLM app subscriptions are typically priced on a per-user basis, although “all in one” packages are available. 

Contract Management Software: Top 5 Reviews

Picking the right app is tough. Here are five quick-fire reviews of some of the top providers currently on the market:

• PandaDoc – PandaDoc is one of the most popular brands in the CLM space. Standout features include a large library of integrations, unlimited document sending and electronic signatures, and a feature-rich document editor. PandaDoc offers what is arguably the best “forever free” plan currently available. 

• Juro – Juro provides a comprehensive set of features, including approval workflows, integrations, and analytics. Notably, Juro offers plans for a set monthly fee with a capped maximum number of users. Depending on your business, this may prove most cost-effective. 

• Proposify – Proposify is ideal for medium-sized businesses that require advanced features. The “Team Plan” costs $49 per user per month, and the “Business Plan” costs $590 per month and allows for ten users. Users have access to an extensive set of features, including an easy-to-use design editor, electronic signature functionality, and secure data storage. 

• Conga Contracts – Conga Contracts is part of a broader suite of business tools (which includes ecommerce and revenue management apps) built for organizations in the commercial space. Pricing isn’t published on its website but several plans are available and you’ll likely find one that fits your company’s needs. Get in touch with the sales team to arrange a demo. 

• Agiloft – Agiloft is geared towards large and enterprise businesses. The software has numerous advanced features, including vendor portals, compatibility with multiple languages, options for custom coding, and 24/7 emergency customer support. Subscription fees aren’t available online but expect enterprise-level pricing if you opt for Agiloft. 

The emergence of blockchain-based smart contract management

The launch of the Ethereum network in 2015 ushered in an era of blockchain-based smart contracts. As the name entails, a smart contract is a digital agreement designed to run when certain predetermined agreements are met. They are smart because no third-party is required to complete the transactions (as soon as the conditions are met). Smart contracts are actively being adopted for decentralized protocols such as those used for crypto token exchange, lending, payments, etc.

A typical example of a smart contract is one that allows a user to swap a known quantity of an asset for another, as long as their wallet holds the equivalent amount of the secondary token they wish to exchange. Another example could be a contract that allows a user to borrow a certain amount of an asset if they deposit a specified quantity of another asset. In both cases, a third party is not required to review the quantity of assets as these are hardcoded into the smart contract. 

Industry experts envisage a world where blockchain-native smart contracts will become the norm for organizational contract management. Until then, web-native contract management solutions will continue to be standard.