How you manage contracts affects business relationships. The right contract management system (CMS) speeds up delivery, maintains continuity and reduces risk.
This can help your organization avoid bottlenecks and missed deadlines. Renewals are important to reduce customer churn, and using a CMS ensures that customers receive timely reminders.
To understand what makes a system effective, start with the core features every business should demand from a CMS platform.
What are the main features of a good contract management system?
Contracts form the foundation of a company's revenue. Many companies drop the ball when determining which department is in charge of tracking milestones. Without accountability, you may miss out on renewals and snag lucrative deals.
Experts predict that the global contract management software market will grow from $1.62 billion in 2024 to $3.24 billion by 2030. As more developers enter the CMS game, the features available increase. Advances in artificial intelligence (AI) make platforms more intuitive.
Although many providers offer similar products, the interface and support vary widely. Following are the key features of a good contract management system:
- Centralized repository and search uses metadata tagging to locate an agreement by parties, dates, or segments.
- Automated workflows route contracts for review, trigger automatic approvals, and use conditional logic to send the right documents to specific people.
- The clause library and templates saved time in drafting contracts, making the system easier for non-legal players to access.
- Digital signature integration streamlines contract approval, keeping all documents in a single database.
Other factors may also come into play depending on your industry. Spend time thinking about the entire life cycle of a contract and the various touchpoints. Note which ones can be automated to better serve the company and customers.
Methodology for ranking CMS providers
Although which platform works best for your organization will depend on the industry and management preferences, ranking each provider on a few basic criteria narrows down the list to the top contenders in those areas. Each provider was ranked based on the elements in the table below.
| workflow automation | section library |
| reporting | liability tracking |
| Integration with popular customer management tools | digital signature capability |
| disposable | total cost of ownership |
The final results came from case studies, documentation, customer feedback, and demos. Each provider received a score based on how well it performed in each category, with features such as liability tracking receiving double points.
Best Contract Management Systems
The CMS you choose can improve productivity, ensure compliance, and make a good impression on users. The five platforms lead the market for easy configuration and extensive automation.
1. Agiloft
Founded in 1991 as a business-process automation company called Integral Solutions Corporation, Agiloft was originally a workflow automation vendor. Over the past few years, it has become the leader in no-code contract lifecycle management (CLM) software, with one of the most versatile sets of contract management products on the market.
The Agiloft platform allows users to customize workflows, approvals and obligations, and generate reports without requiring developers to write code. The software extracts metadata using AI tools for advanced searches and analysis and integrates seamlessly with Salesforce and SAP.
Agiloft's flexibility and history make it suitable for medium-sized and enterprise organizations that need control, customization, and enterprise-grade security for compliance.
2. Icertis
Founded in 2009, Icertis is based in Bellevue, Washington. The company develops cloud-based enterprise CLM software built on the Microsoft Azure platform for global enterprise compliance, scalability, and analytics.
Icertis' artificial intelligence platform provides a single source for monitoring contracts, performance, risks and obligations across different geographies, departments and business units. It is widely used in multinational corporations and other highly regulated sectors that require administration and analysis.
3. iron cover
Ironclad was created in 2014 by Jason Boehmig and Kai Gogwilt and has now become one of the largest and fastest growing legal tech companies. The founders of Ironclad reimagined how businesses could easily create contracts. They designed a single interface for workflow and legal collaboration.
In addition to its no-code drag-and-drop contract workflow designer and Clickwrap tracking feature for online transactions, Ironclad has improved its features with AI-assisted redlining and policy management features. Ironclad is a great solution for growth-stage companies wanting efficient, easy-to-use CLM software.
4. LinkSquare
Launched in Boston in 2015, LinkSquare was founded by Vishal Sunak and Chris Combs, who created the platform after their company faced difficulty during an acquisition. The platform is a low-maintenance repository with visibility and analytics powered by AI.
LinkSquares allows its users to extract key terms from contracts through post-signature intelligence. It analyzes risks and enables executives to track upcoming obligations and renewals. The simple interface and fast onboarding have made it popular for companies that want advanced analytics without heavy configuration.
5. Contractworks
Established in 2012 and now Onit, Inc. Part of ContractWorks, ContractWorks simplifies contract management and makes it affordable. The provider offers companies basic contract management functionality through a centralized repository, role-based access permissions, and alerts built into a user-friendly interface.
The system attracts small and medium-sized businesses because of its stability and ease of installation, compared to more complex implementations. The parent company, ContractWorks, still supports it as an entry-level product with better security.
How to choose the right platform?
Finding a CMS platform that meets all your needs will give you better control. You'll master compliance requirements and gain confidence in the contract life cycle, helping you negotiate better.
Start by mapping your existing processes and identifying bottlenecks. Pay attention to who starts the contract, where approval stops and which clauses cause friction. Use demos and trial periods to test each platform with a handful of real contracts. Test search features, routing, and reporting. The right choice should integrate with existing systems and be able to expand as your company grows.
reap the rewards
Understanding and implementing the key features of a good contract management system puts you ahead of your competitors. Your team can invest in technology that shortens turnaround times, reduces errors, and strengthens inter-departmental relationships. With streamlined contracts, you can spend more time securing clients. Updated and automatically maintained information prevents costly mistakes.
The right CMS platform adapts your contracts to the constantly changing global business environment and allows you to focus on the elements that generate growth.
