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What Is the Difference Between Contract Management and Contract Automation?

Contract Management


Contracts are an important part of the day-to-day operations of a modern day business. For contracts to be created, they need digital legal technology. In the legal world, the words contract management and contract automation are used simultaneously. Mostly the two terms, contract management, and contract automation, can confuse as people view them to be the same thing since both addresses similar needs as the basic functions and purposes might be similar. Still, they are different and used in different scopes in the contract business world.

Difference Between

Both contract management and contract Automation aid in making the process of developing a legal contract easier, leading to a smooth workflow and hassle less processes. With the rise of evolution and modernity in the business world, contracting is no exception, and contracting can be time-consuming and cost-intensive. Here we dig into the deeper details of contact management and contract Automation and what distinguishes the two.

What is Contract Management

Contract management usually addresses the end-to-end contract lifecycle. With contract management software from ,you will easily manage contract creations, negotiations, signing, and storage. Additionally, contract management software helps an organization’s team self-serve on the entire process with pre and post-signatures. Poorly managed contracts can negatively impact your business as they are crucial aspect in attaining the overall organization and business’s success.

Contract management can also be seen as the system an organization can use to manage its contracts. The main focus of contract management Is to increase the system’s reliability as it helps look at all aspects and levels of contract administration, from overall team collaboration to contract storing and reporting.

Benefits of contract management software


When you use contract management software, you make all your processes as efficient as possible. As a result, you increase your company’s capacity to take on new business.


A Contract management software can help apply changes to a document immediately as it comes with handy collaboration tools instead of relying on email chains or even word track changes.


Contract management software can enable searching and easier access for documents with just a single click compared to the tedious work of going through files one by one. With the help of an effective contract management software, documents get centralized, making access easier for the involved parties. This helps in making all your paperwork instantly searchable.


Adopting new contract management software is always challenging, and employees can find it hard to change from their previous working routine and fit into the new one. Therefore, with the aid of contract management software, it is easy to integrate and become compatible with the existing systems. This is an important aspect as companies need something that will be compatible with their software for ease in the continuation of operating the contracting business.


What Is Contract Automation

Contract Automation involves the process of creating a contract that leads to the execution of the contract. This is everything in the so called ‘pre-signature’ stage, which includes contract creation and collaboration. Besides, it includes include the signature stage itself. This means that the contract automation is only limited to the signing stage, whereby the hardware and software aid in improving how we create contracts, review them and execute them.

Also, contract automation can be seen as a way in which it aids in eliminating much of the manual work. Contract automation its main focus is on increasing speed.

Benefits of Contract Automation Workflows


Speed has to be the most vital benefit of automation software. This is because an automated process reduces the time that could have been taken compared to operating the work manually.

A single Audit trails

Contract workflow automation has huge benefits at the negotiation stage, whereby collaborating and reviewing contracts in a unified workspace makes it easier for parties involved to scroll through changes and keep track of edits.

Fewer admin works

Automating the contracts process means your company team can avoidto copy and paste from old templates which saves time and allows them to focus on the high value they were hired to do. Automation software enables in completing the time-consuming to related tasks as the speed is high making and helping the employees focus on other major staffs and tasks in the company.


Automation software makes no mistakes compared to the same task being performed by the employees as humans are associated with errors, improving the system’s accuracy.

Final words

In conclusion, it is clear that the distinction between contract management and contract automation is that contract management oversees the entire contract lifecycle, focuses on standardization and reliability, creates channels for collaboration and communication, and can be replicated. On the other hand, contract automation optimizes individual stages within the contract lifecycle, focuses on speed and accuracy, improves accountability and turnaround time, and is easy to integrate and operate.

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