Contract redlining processes demand patience and strict attention to detail. You need the right tools to finalize the process accurately and correctly. Redlining software lets users track any changes made to a contract digitally. In addition, it helps to accept or reject any suggestions made to a contract. Where a redlining process takes four days to complete, using redlining software takes two days to complete.
What is contract redlining, and where did it come from?
Contract redlining is the process of reviewing a contract document and redlining or highlighting edited clauses or sections. Contract redlining started in the 90s when a lawyer would receive a contract document to negotiate via fax.
The lawyer would then use a red pen to mark specific sections, and then they would fax the contract back. Of course, both traditional and digital contract redlining processes face challenges such as cross-department coordination and scatter contracts.
However, the industry is growing rapidly as many companies choose Redline software for their digital contract processes. Here are reasons you should use redlining software for your contract redlining processes.
1. Version control
When using redlining software, the contract document will only have one version for everyone to use. It eliminates the scattered documents problem where no one can tell the document’s original version.
Using software for redlining processes thus reduces confusion brought by using different document versions. Members use the same document, and comments or suggestions are easily captured during interactive discussions.
Moreover, documents are only updated when members reach a consensus. A redlining software minimizes the hassle of searching emails for comments, as it would be when using other platforms such as Google Docs.
2. Automated approvals
During a redlining process, several people sign their approval before it is finalized. A redlining software allows such personnel to sign their approvals on the contract document whenever and when they like.
A redlining software allows for automated Approvals, and you don’t have to chase anyone for approval. Instead, you can link them up with the contract document, and they can sign an approval.
The software will allow the personnel to review the document before signing an approval. So you don’t have to spend more time explaining the details of the contract to them.
3. Cloud storage
Most redlining software has cloud storage abilities, which are advantageous for remote teams. Therefore, if you are dealing with a redlining process with remote team members, they can easily access the contract document from any part of the world. Cloud storage also allows remote team members to see any change on the contract document in real time.
4. Manage your contracts with ease
With redlining software, you can store the document in a central repository where all team members can access it. With the software, you can capture crucial aspects of the contract and review them in real-time.
You can also create automatic reminders for team members. To find contracts, you can use a full-text search to find contracts. This is especially advantageous for people dealing with different redlining contract processes. Redlining software also allows one to track important redlining milestones and terms from the dashboard.
5. E Signatures
After reviewing, rejecting, and accepting some clauses or sections of a contract document, it’s now time for signatures. A good redlining software will allow users to sign on the document without having to look for a third-party tool for signatures.
6. Saves time and money
The redlining process of a contract can be long and tiresome. If the members are from different cities or countries, they will have to meet physically if they are not using digital redlining software. Meeting physically means they will have to incur food and accommodation costs.
A redlining software cuts the costs of possible accommodations and food. The back-and-forth sharing of the contract document takes a lot of time. It does not require members to share the document back and forth. Instead, members can access the document in a single setting, saving so much time.
Contract redlining is itself a painstaking and time-consuming process. You have the right technology to make the redlining process seamless. Fortunately, redlining software makes the process less daunting and saves time and money. The best tool for redlining has redlining software that will smoothen the whole process. Good software should allow you to enjoy the benefits of using the redlining software we have listed in this piece.
