Thanks for being part of our blog series on best practices to ensure contract compliance. Today’s post will talk about best practice #2—maintaining a contract template and clause library.
Standardized contract creation = Faster contract creation! Drafting contracts from scratch makes authoring time-consuming and error-prone.
Using configurable templates standardizes the contract language across contract categories and reduces the chances of errors. A comprehensive library of pre-approved clauses (including alternate and fallback clauses) standardizes language and mitigates risks of violating regulations or skipping details, while also making drafting and negotiation quicker.
Standardizing is a continuous process, but crucial for ensuring high compliance levels throughout the contract lifecycle. Set templates can create challenges when amendments and modifications must be made, especially during the preparation of customized contracts.
Ensure regular updating of templates and clauses for any changes due to regulations, processes, or industry measures, under the guidance of the concerned domain experts with constant monitoring.
Quick tips to ensure contract compliance:
- Define mandatory / non-mandatory clauses
- Define templates & clauses based on geographies & categories
- Ensure continuous updates to all clauses & templates by relevant stakeholders
Watch this space for more on contract compliance management.
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