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How to Build a Better Construction Contract Management Program
How construction companies handle paperwork and manage contracts significantly impacts efficiency, renewal rates, and customer satisfaction. That’s why many businesses are turning to digital, automated solutions for construction contract management. Why? Automated tools reduce time to sign, keep processes on track, and ensure renewals aren’t forgotten.
Read on to discover the key factors to consider when building your construction contract management program.
What is Construction Contract Management?
No two businesses are the same, so construction contract management tools should be flexible enough to meet your specific needs. An effective construction contract management strategy varies depending on the scope and size of your business and your team’s needs. However, there are key factors to consider when creating your strategy to avoid problems and ensure success:
- Review Existing Contract Processes
- Identify Key Stakeholders and Roles in the Contract Management Process
- Create an Inventory of Existing Contracts
- Establish Clear Policies and Procedures for Contract Creation and Execution
- Implement Contract Automation Tools to Improve Processes
- Centralize Contract Management Workflows
- Monitor Strategy Performance and Effectiveness
Key Components of Construction Contracts
Well-drafted construction contract agreements can simplify administration processes, improve turnaround times, enhance ROI, and significantly reduce errors. These legally binding documents outline the details of a construction project and often include the following key components:
- Dispute Resolution Provisions
- Insurance and Workers’ Compensation Coverage
- Legal Obligations
- Payment Schedules
- Pricing
- Process for Changes in Terms
- Project Scope
- Responsibilities
- Terms and Conditions
- Timelines
- Warranties
The Construction Contract Management Process
Contract lifecycle management (CLM) is an essential process that guides clients through every stage of a contract, from initial data gathering to drafting, signing, and reporting. By implementing an effective CLM process, you can drastically reduce the chances of stalled agreements. Here are the key steps to consider:
Pre-Contract Phase
Involves resource compilation and the initial research that will serve as the reference material for the contract draft. Our CLM platform utilizes AI technology to collect all pertinent data, reducing the time-consuming efforts of manual processes.
Contract Execution Phase
Implementing contract lifecycle management tools with AI-based natural language generation (NLG) quickly generates a draft, automatically incorporating the resources gathered from the previous step.
Once the draft is ready, all parties can collaborate to refine, edit, and negotiate the contract terms. Stakeholders can leave comments, create duplicate drafts as needed, and secure final approvals. CLM automation also offers convenient e-signature capabilities, centralizing workflows and speeding up project delivery.
Post-Contract Phase
Ongoing management via AI-driven automation makes searching, retrieving, and reporting on documents easier than ever before. A CLM ensures contract renewals and terminations are just a click away.
Benefits of Effective Contract Management in Construction
Effective construction contract management solutions offer the following benefits:
Risk Mitigation
AI-enhanced robotic process automation (RPA) helps teams seamlessly move between tasks, reducing the potential for human error and enhancing workflow efficiency.
By maintaining strict compliance with industry standards, you can minimize penalties and risks, ensure consistency, and foster a culture of compliance. It can also safeguard your company’s reputation by supporting ethical and safe business operations.
Cost Control
- AI-driven, streamlined contract generation
- Quickly producing custom templates and documents can cut down costs associated with lengthy research and contract drafting.
- No-code customization offers fast, efficient adaptation that does not require the assistance of a costly specialist for accurate project delivery methods.
Improved Construction Project Management Outcomes
- Central platform for streamlined collaboration
- Robust API integrations ensure smooth integration with tools and processes
- Secure and compliant data storage
- Digital signatures can expedite the signing process
Best Practices for Construction Contract Management
Implementing best practices for contract management offers the following benefits:
Standardization and Consistency
Building contracts manually every time can be extremely time-consuming and inefficient, potentially slowing down deal closings by days or even weeks. A standardized contract template helps streamline this process, reducing errors and saving valuable time. A consistent foundation with standard terms and conditions can be easily modified to meet specific needs, ensuring both efficiency and accuracy.
Clear Communication
Defining the process and establishing standardized workflows with a powerful tool that allows collaborative contract editing ensures clear and concise communication opportunities among clients and essential team members.
Regular Review and Updates
Construction contract management software allows users to track the contract’s deadlines, compliance, and expiration dates, ensuring better visibility into contract status. Automated reminders make missing important dates a thing of the past, so you never miss a critical deadline.
Digital Solutions for Construction Contract Management
Docubee’s innovative and powerful construction contract management solution offers:
- Comprehensive Contract Automation
- User-Friendly Interface
- Seamless API and Native Integrations
- Effective Project Delivery Methods
Construction Contract Management Software
Docubee offers personalized implementation tailored to meet FEDRAMP and SOC 2 Type II industry standards. Clients can leverage the full suite of construction project management features at a competitive price, ensuring exceptional value without compromising on quality.
Our automated platform can effectively manage all types of construction contracts with precision, handling everything from bills of sale to fixed-bid agreements to cost-plus contracts, and more.
Integration with Project Management Tools
Implementing a contract platform that integrates with your system unleashes productivity while providing the following advantages:
- Makes Work Easier
- Allows Better Visibility into Data
- Puts Data to Work
- Creates a Unified Experience for Users
Modernize Your Construction Contracts with Docubee
Docubee provides cutting-edge digital contract management for construction, offering features like form creation, automation, document generation, secure eSignatures, contract management, and more. Our platform meets the highest standards of compliance and security to protect sensitive information, keeping contracts safe and secure.
