What is a contract database?

Whether it is sophisticated, automated or still in your physical archives, we all have a contract library within our companies.

What is a contrast library? Why is it essential to first think about the needs we want to solve before looking at the means to solve them? What are the functionalities of a contrathèque?

We take you to explore the files and depths of the contrathèques in one of the few articles on your search engine that does not aim to sell you any software.

‍

‍

Contract Library: Definition

‍

Contrathèque comes from the contraction of the words contracts and library.

This term, which does not yet appear in our Larousse dictionaries, is nevertheless very present in our respective daily lives in companies.

A contract library is a library of contracts that meets two objectives: to share contract models and to centralize the archiving of contracts signed by the company.

‍

‍

Different types of libraries

‍

Often associated with contract management software (CLM), a contract library can materialize in different ways without necessarily being integrated with a software dedicated to contracts.

‍

A contract library is a set of files containing shared templates or archived contracts. There are several ways to design a contract library adapted to your needs.

‍

🚩 Google Drive / Sharepoint not connected

‍

Start by creating a coherent architecture, useful and adapted to the needs of your internal customers and your team. It is up to you to determine the most relevant classification (team, customers, quarter, etc.), while taking care to distinguish the self-service models from the created contracts.

‍

👋 Note: This is a good start!

Providing automated contract templates via Excel/Word or Gdoc/Gsheet is a first step towards automation.

On the other hand, if you want to manage your contractual activity with reliable indicators, this will not allow you to take advantage of the data generated and archived in your templates and archived contracts.

Similarly, if you want to save time, the next step is to connect your electronic signature tools, CRM or other business software used in contracting with your contract library on Google Drive / Sharepoint.

‍

‍

🚩Google Drive / Sharepoint connected to your business software

‍

If you want to manage your contractual activity with reliable indicators, connecting your contract library created on your Drive will allow you to take advantage of the data generated and save time by creating end-to-end connected workflows.

‍

👋 Note : If you're at this point, you've successfully leveraged and shared your existing tools to meet your needs. Well done!

‍

🚩CRM software

‍

According to Hubspot, "A CRM (Customer Relationship Management) is a software that allows you to manage and optimize the commercial relationship of a company through the centralization, automation and optimization of its interactions with customers and prospects.

‍

👋 Note : If you're at this point, you've successfully leveraged and shared your existing tools to meet your needs. Well done!

‍

🚩Contract management software

‍

Contract management software has features designed for contract practice.

‍

👋 Note : Beware that while some contract management software offers native integrations with other applications, others are able to do so through their API.This will involve additional work and coordination time between your technical teams and theirs.

‍

How do I know which type of contract library is the most suitable for my needs? You will certainly not find the answer to this question by asking Google.

‍

‍

‍

‍

The answer to this question is nothing more than a new question you must necessarily ask yourself, "What are my company's contract management needs?"

‍

That's why it's essential to put aside the gleaming features of software promising you wonders and focus on your needs first, then prioritize them.

‍

‍

Think needs before features

‍

‍

As you know, thinking about features first is never a very good idea.

‍

On another note, placing a white cashmere rug in a living room that also serves as a playroom for young children is not a very good idea.

‍‍

Functionality : Beautiful white cashmere carpet

‍

Need: To design a decoration that is both warm and adapted to the play practices of its children with its risks, its hazards etc..

‍

Solution : If there is no extra space for a playroom, avoid carpets or ask the children to play in their rooms (less warm, unfortunately...)

‍

Or opt for the car for your daily commute if your route is daily disrupted by traffic jams, as opposed to the bike path that runs along the same road.

‍

Functionality: Latest generation SUV from a famous German brand

‍

Need : To make a journey of maximum 30min to go to work and go home at the end of the day. Without upsetting your habits by waking up at dawn to arrive earlier.‍

‍

Solution: The mechanical or electric bike will allow you to use the bike path and to make a journey time of maximum 30min vs 1h or more by car.

‍

If we go back to contract management, you will probably hear or already hear some of your colleagues telling you that you absolutely need a tool with this or that functionality (artificial intelligence getting the gold medal in terms of occurrences in these conversations).

‍

The chain of "Why" will be your best ally.

‍

• Why do we need artificial intelligence?
• Why do we need automation?
• Why do we need a Salesforce integration?
• Why do we need a dynamic clausier?

‍

Ask "Why?" does not mean you are skeptical about a feature proposal. Asking "Why " will allow you to understand what the need is

‍

Make this clear to your colleagues in advance. The "Why" is not a sign of defiance, on the contrary, it is a desire to understand the need in order to respond in the most appropriate way.

‍

‍

🗂️Besoins current issues that can be addressed by a contrast library

• Free up time for legal teams and give autonomy on contracting to your internal clients
• Reduce time spent in negotiation to accelerate the conversion cycle and win new opportunities
• Centralize and pool contractual resources for better monitoring and dissemination of information
• Optimize the tracking of contractual deadlines so that you don't miss any important opportunities or deadlines

‍

‍

Features of a Contra Library

‍

‍

• A Drive / Sharepoint type folder library that allows you to share templates and centralize the contracts created

• Automatic or manual tagging of metadata for each generated, archived contract

• No-code automation of mutualized contract templates

• Automated generation of contracts from shared templates

• Tags giving visibility on the status of the contract according to its progress in your workflow

• Search engine with a system of filters allowing to make a precise request on all the contractual data

• Summary sheets to summarize the essential information of the contract

• Integration of your solution or an electronic signature solution

• Integration of your CRM - Auto-completion of fields

• Integration of your billing software

• Contract activity feed allowing to record chronologically each action performed by each contributor

• The contract workflow from creation to execution

‍