Best Contract Management Application for Business [2025]
                     Best Contract Management Application for Business 
[2025]
Best Contract Management Application for 2025
The most successful organizations understand that managing contracts 
isn’t something to leave to chance. Every agreement represents an 
opportunity and when handled efficiently, it can drive growth, minimize 
risk, and streamline operations across departments.
Forward-thinking businesses use contract management application to 
bring structure and control to their contract lifecycle. From creation to 
approval and renewal, these systems ensure accuracy, compliance, and 
visibility at every stage.
Interestingly, a recent study by ALM and Bloomberg Law found that over 
40% of corporate counsel spend at least half of their workday managing 
contract-related tasks. That’s a significant amount of time that could 
otherwise be directed toward strategic initiatives.
By implementing a robust contract management application, 
organizations can centralize contract data, automate workflows, and 
avoid administrative challenges.
In this blog, we’ll explore the key features, advantages, and best 
practices for
selecting a contract management system that enhances productivity and 
aligns with your business goals.
Quick Read
Summary generated by AI, reviewed for accuracy.
Looking for a smarter way to manage your contracts?
Discover the power of an AI-driven contract management application 
that helps you create, track, and manage agreements effortlessly while 
gaining insights that boost efficiency and collaboration.
Importance of Contract Management Application
According to a study by Deloitte, inefficient contract management 
processes can cause organizations to lose up to 8.6% of their total 
contract value. This shows the importance of the systema and below are 
some key reasons why implementing
a contract lifecycle management solution is important for modern 
organizations.
1. Centralized Contract Oversight
In many companies, contracts are stored in different folders, emails, or 
even physical files, leading to version mismatches and missed updates.
Having a centralized contract management application ensures every 
agreement from vendor to client is accessible in one unified platform.
This centralization enhances transparency, reduces duplication, and 
allows teams to retrieve information instantly, fostering collaborative 
contract management between each teams.
2. Minimizing Manual Errors and Delays
When contracts are processed manually, the risks of human error, missed 
deadlines, or overlooked renewals are high. A single misplaced clause or 
missed approval can create costly setbacks.
A contract management application automates repetitive tasks such as 
approvals, reminders, and contract tracking, ensuring every document 
progresses smoothly through the workflow.
This not only saves time but also brings precision and accountability to 
each step of the process.
3. Strengthening Compliance and Accountability
A study as per PwC says that’s, Around 40% of business and risk leaders 
surveyed reported that their organizations have strengthened their risk 
management practices over the past year, leading to more consistent and 
effective compliance with
regulatory requirements.
A contract management application helps organizations maintain 
complete compliance by storing all contracts with secure access 
controls, version histories, and audit trails.
It provides clear visibility into who approved what and when making 
compliance tracking effortless and reducing the risk of legal disputes.
Moreover, it builds a culture of accountability within teams, ensuring 
that every stakeholder adheres to established standards and 
timelines.
4. Data-Driven Decision Making
Contracts hold valuable business insights that often go unused in manual 
systems. A contract management application allows teams to extract and 
analyze contracts such as approval timelines, negotiation trends, and 
contract value distribution.
This data-driven visibility empowers leaders to identify process gaps, 
negotiate better terms, and make informed strategic decisions that 
contribute directly to business performance.
By turning contract data into actionable intelligence, organizations can 
forecast risks, uncover opportunities, and continuously optimize their 
contracting strategy.
5. Supporting Scalable Growth
As a business expands, so does the number of contracts it manages 
with vendors, clients, partners, and employees. Relying on manual 
tracking at this stage can quickly become overwhelming.
A contract management application scales with the organization, allowing 
thousands of contracts to be handled efficiently, without losing control or 
accuracy.
It ensures business continuity, consistency, and reliability even as 
operational demands grow.
How Does Contract Management Application Works
A best contract management application helps businesses handle every 
step of the contract process in a clear and organized way. Here’s how 
each stage works:
1. Contract Creation
The process begins with creating a new contract. Users can start with 
ready-made templates or build custom contracts from scratch.
These templates include pre-set sections for important details such as 
names, terms, timelines, and payment information.
This helps teams create accurate contracts faster while keeping a 
consistent format across all documents.
2. Contract Routing
Once the draft is prepared, it is routed to the concerned teams or 
individuals for input.
The contract management application allows users to compare different 
versions of a contract, highlight changes, and make quick revisions 
without losing track of previous edits.
This feature keeps a clear record of who made changes and when, 
making the review process more transparent and accountable.
3. Contract Review
During the contract review process, AI assists by summarizing legal 
clauses and suggesting alternative options when needed.
On average, professionals in well-established contract management teams 
like those in enterprise legal departments spend around 92 minutes 
reviewing a single
contract.
This saves time for legal teams and helps identify potential risks or 
unclear terms early in the process.
It also helps reviewers focus on key points instead of reading lengthy 
sections line by line.
4. Approval
The CLM 365 contract management application provides a multi-level 
approval system, allowing contracts to go through several layers of 
authorization before final approval.
This structured contract approval process gives every department legal, 
finance, and operations an opportunity to review and approve the 
document according to company policy.
It also helps identify potential issues early, preventing delays or 
misunderstandings later in the process.
5. Contract Negotiation
Once the approval stage is complete, both parties can negotiate terms 
directly within the system. The contract management application keeps a 
record of all proposed changes, making it easier to compare offers and 
finalize fair terms.
A good contract negotiation workflow helps build clarity between both 
sides while keeping the negotiation history safe for future reference.
It also allows teams to track responses and timelines, ensuring that 
negotiations stay organized and transparent throughout the process.
6. Contract Changes
If any changes are required during the contract handling, they can be 
updated within the system. The contract management application 
maintains a record of all modifications and the users who made them.
This contract change management teams track contract evolution and 
refer back to earlier versions whenever necessary.
It also provides a clear history of updates, making it easier to resolve 
disputes or answer questions about previous terms.
7. Signing
Contracts can be signed electronically using secure electronic 
signatures or uploaded after manual signing.
Once the signing is complete, the contract is automatically stored in 
the system along with detailed records of dates and signatures.
This not only makes retrieving documents faster and easier but also helps 
maintain a reliable and organized digital archive for future reference. 
Using electronic  signatures adds convenience while keeping the process 
secure and professionally documented.
8. Reporting and Analytics
The contract management application provides built-in reporting tools 
that display important data such as contract status, approval timelines, 
and renewal dates.
These contract analytics features helps legal teams understand contract 
value and make data-based decisions for future agreements.
Over time, these insights contribute to better contract performance 
and improved operational control.
Key Features of Contract Management Application
CLM 365s contract management application is designed to streamline 
the entire contract lifecycle. Here are some important feature that helps 
businesses enhance the agreement management process.
1) AI-Powered Contract Assistance
As per Deloitte research, 79% of respondents believe that Generative AI 
will have a moderate to significant long-term impact on the way legal 
work is conducted.
This stats shows the importance of acquiring contract management 
application powered by AI. The AI assistant helps users highlight 
critical clauses, suggest improvements, and detect potential gaps, 
helping teams create stronger, more effective contracts in less time.
With AI support, the contract summarizing becomes easier with AI and 
teams can focus on high-value decisions rather than manual tasks.
2) Contract Compliance Management
Monitor obligations, deadlines, and milestones effectively. The 
system provides notifications and reminders for key dates, helping 
teams stay on top of contract requirements.
This proactive tracking ensures that commitments are met, and important 
actions are never missed.
Teams can view contract compliance status at a glance, helping 
them plan and manage contracts efficiently.
3) Easy Contract Drafting
Create contracts quickly and accurately directly from MS Teams or 
Outlook using intuitive templates or fully customizable formats.
The contract management application helps you structure contracts 
clearly using contract clause library.
Whether it is creating a simple agreement or a detailed commercial 
contract, these contract drafting feature make the process seamless, 
reducing delays and boosting productivity all without leaving your 
favourite collaboration and email
platforms.
4) Contract Redlining
Simplify the process of reviewing and editing with contract redlining 
software.
Every change, addition, or removal is clearly highlighted, making it 
easy for all parties to follow updates during negotiations.
Teams can provide comments directly in the document, compare 
versions side by side, and maintain clarity on what has been modified, 
improving collaboration and speeding up the negotiation cycle.
5) Negotiate Better
Engage stakeholders effectively within the platform. The contract 
negotiation allow teams to share drafts, provide feedback, and propose 
changes, all in one place.
This feature helps maintain clear communication, reduces delays, and 
supports a more productive negotiation process.
Contracts move forward faster because everyone can participate 
without the need for external emails or scattered documents.
Recommended Read: Key Contract Negotiation Strategies to Implement
6) Integration with Existing Systems
The CLM 365 contract management application seamlessly 
integrates with like SharePoint, MS Teams, Outlook, Power BI, and MS 
Copilot.
This ensures smooth data flow across platforms, enabling users to 
create, share, track, and analyse contracts without switching between 
multiple applications.
With unified access and real-time collaboration, teams can work more 
efficiently and make informed decisions directly within their existing 
Microsoft ecosystem.
7) Multi-Level Approval
Manage approvals efficiently through structured workflows. Contracts can 
be routed to multiple reviewers or managers, each with their own level of 
responsibility.
Approvers can review, add comments, and authorize contracts at 
their stage, ensuring that every contract meets organizational 
requirements.
This organized process enhances transparency and provides a clear 
contract audit trail for compliance and accountability.
8) Contract Routing
Move contracts through the organization effortlessly. The routing 
feature automatically sends contracts to the right person or 
department at the correct stage.
This ensures that contracts follow a logical path from creation to 
approval, reducing challenges and keeping teams aligned on priorities.
This seamless workflow accelerates turnaround time and empowers 
teams to focus on strategic tasks instead of manual follow-ups.
9) Contract Amendment
Update contracts after they have been approved while keeping track of all 
changes. Each contract amendment is logged and stored, making it easy 
to reference previous versions or review historical modifications.
This feature allows teams to adapt agreements over time while 
maintaining clarity and accessibility of information.
With a transparent audit trail and version comparison, it enhances 
accountability and ensures every stakeholder stays informed about the 
latest contract updates.
10) Version Control
Keep all versions of a contract in one organized location with robust 
contract version control. Easily compare previous versions, track changes, 
and restore earlier drafts whenever needed.
This ensures complete visibility of the contract’s evolution and 
provides a reliable record for future reference, audits, or reviews.
With centralized control and instant access, teams can collaborate 
confidently, knowing they’re always working on the most accurate 
and up-to-date contract version.
11) Centralized Contract Repository
Store all contracts in a single, secure location for easy access 
and efficient management.
With a centralized contract repository, you can organize contracts by 
client, type, date, or custom tags, making it effortless to search, filter, 
and retrieve documents when needed.
A centralized contract repository system saves time, enhances visibility, 
and ensures that every authorized team member can access the right 
contract information
instantly eliminating confusion and improving overall productivity.
12) Electronic Signature
Execute contracts digitally with secure and compliant electronic 
signatures. This feature simplifies contract signing by allowing all parties 
to sign agreements anytime, anywhere removing the need for printing, 
scanning, or mailing documents.
Electronic signatures make contract completion faster, reduce delays, 
and keep the entire process safe and convenient.
By making contract signing simple and quick, businesses can close deals 
faster and improve the overall experience for everyone involved.
Benefits of Contract Management Application
Managing contracts manually can be time-consuming and risky, but a 
contract management application helps businesses handle 
agreements efficiently, reduce risks, and maximize opportunities.
1) More Time for Strategic Works
Around 76% of businesses rely on automation to streamline their 
everyday workflows, helping them complete routine tasks more 
quickly and maintain consistency across processes.
With contract management automation, processes like tracking deadlines, 
searching for documents, and coordinating approvals are handled quickly 
and accurately.
This allows your team to focus on strategic initiatives that drive business 
growth. Whether it’s negotiating better deals, planning new projects, or 
strengthening client relationships, the application frees up valuable time 
so your staff can concentrate on what truly matters.
2) Fewer Missed Opportunities
Important dates, contract renewals, and obligations can easily get 
lost without a proper system.
A contract management application keeps all contracts organized and 
accessible, making it easier to stay on top of critical timelines.
By having a clear overview of upcoming deadlines and contractual 
obligations, your business can act promptly renew agreements.
3) Greater Revenue Protection
Revenue can easily be affected if contracts are not properly managed. A 
contract management application tracks payment terms, billing 
schedules, and any penalties, helping your business avoid missed 
payments or costly mistakes.
By keeping accurate records and sending timely reminders, the 
application protects your income, reduces the chance of disputes, and 
maintains financial stability.
This ensures that your revenue remains secure, predictable, and 
contributes to steady business growth.
4) Boosted Team Productivity
Teams often waste hours searching for contracts, waiting for approvals, 
or updating documents manually. A contract management application 
centralizes all contracts, approvals, and updates in one easy-to-access 
platform.
This means teams can complete tasks faster, coordinate more effectively, 
and focus on high-value activities.
With less time spent on administrative work, productivity naturally 
improves across departments.
5) Higher Client and Partner Trust
Managing contracts professionally builds confidence with clients and 
business partners. A contract management application helps your 
business respond quickly to requests, meet deadlines, and maintain clear, 
consistent communication.
Clients and partners see that you handle agreements carefully and
reliably, strengthening vendor relationships and encouraging repeat 
business.
Strong trust in your processes can also lead to better negotiation terms 
and long- lasting partnerships.
6) Reduced Legal & Financial Risks
A contract management application helps businesses stay on top of 
legal and financial obligations with ease.
A good system helps manage contract risks and strengthens your 
company’s reputation and provides a solid foundation for growth.
With clear visibility into all contracts, teams can make informed decisions 
quickly and confidently. It also enables businesses to identify potential 
issues early and act proactively to protect their interests.
7) Empowered and Efficient Legal Teams
Legal teams can focus on their core strengths reviewing, advising, 
and guiding important decisions while routine administrative tasks 
are simplified.
A contract management application manages version tracking, 
amendments, and approvals, helping teams handle a higher volume of 
contracts with ease.
This enables legal professionals to provide stronger strategic support, 
contribute to better business outcomes, and work more efficiently across 
all agreements.
8) Better Decision-Making with Clear Insights
A contract management application stores all contract information in one 
place and provides insights into contract performance, trends, and key 
metrics.
With this visibility, business leaders can make informed decisions, 
identify potential risks, and spot opportunities for improvement.
For example, you can analyse which types of contracts bring the most 
value, plan resource allocation, or forecast renewal outcomes more 
accurately.
Key Industries Using Contract Management Applications
Contract management applications are used by a wide range of 
industries and sectors to organize, track, and manage contracts 
efficiently. Here are some of the key industries benefiting from contract 
management applications:
1) Legal Firms
Legal firms deal with a huge volume of contracts, client agreements, 
and case- related documents.
A good contract management software help legal teams keep all their 
contracts in one digital place, making it quick to find specific 
agreements whenever needed.
They also allow law firms to monitor important dates, such as contract 
renewals or court deadlines, helping lawyers focus on serving their 
clients effectively and improving overall productivity.
2) Banking and Finance
Banks, investment firms, and financial institutions handle a variety of 
contracts, including loan agreements, investment deals, and 
partnership contracts.
Contract management applications assist them in tracking deadlines, 
approvals, and changes to agreements.
This reduces the chances of missing key dates and helps financial 
organizations operate smoothly while maintaining strong relationships 
with their clients and partners.
3) Healthcare
Hospitals, clinics, insurance providers, and other healthcare 
organizations manage numerous contracts for medical equipment, 
pharmaceuticals, patient services, and insurance coverage.
Contract management applications help healthcare providers keep these 
agreements organized, monitor expiry dates, and track compliance 
requirements. This system makes it easier for healthcare teams to focus 
on patient care rather than getting caught up in contract details.
4) Real Estate
Real estate companies handle a variety of agreements, including 
property sales, leases, rentals, and vendor contracts.
With contract management applications, they can store all contracts in a 
central location, track important dates like lease renewals or property 
transfers, and monitor payment schedules.
This reduces administrative work and allows real estate professionals to 
concentrate on growing their business and serving their clients.
5) Manufacturing
Manufacturing companies work with multiple suppliers, distributors, and 
clients, all of whom have different contract terms and agreements.
A reliable contract management help manufacturers monitor pricing 
agreements, delivery schedules, and supplier commitments.
This ensures that production processes run more smoothly, 
relationships with partners remain strong, and deadlines are met 
without unnecessary delays.
6) Utility Services
Utility companies, including electricity, water, and gas providers, 
manage contracts with service vendors, regulatory bodies, and 
customers.
Contract management applications make it easier to track contract 
obligations, deadlines, and compliance requirements.
This improves utility contract management maintains consistent service 
quality and meet regulatory expectations, while reducing the time spent 
on manual contract tracking.
7) Supply Chain and Logistics
Companies in supply chain and logistics work with multiple vendors, 
transport partners, and service providers.
Contract management application allow them to keep a record 
of shipping agreements, delivery terms, and payment schedules.
By having all supply chain contracts organized in one place, supply chain 
teams can respond quickly to changes, prevent delays, and strengthen 
their coordination with partners.
8) Oil and Gas
The oil and gas sector deals with highly complex contracts covering 
extraction, transportation, equipment supply, and joint ventures.
Contract management application help oil and gas companies organize 
agreements, monitor compliance, and track deadlines for multiple 
contracts at once.
This ensures smoother operations, better coordination between teams, 
and a clear overview of all active agreements.
Best Practices to Implement Contract Management Application
Implementing a contract management application effectively can help 
organizations manage agreements, deadlines, and approvals more 
efficiently. Following these best practices makes the system easier to use 
and maximizes its benefits.
1) Identify if the System Uses AI or Automation
Understanding whether the system uses AI or automation helps decide 
how tasks
and processes can be managed. It also helps to use the system’s 
features in the most productive way.
 Check if the system can automatically extract contract details 
like dates, parties, or amounts.
 Identify which tasks can be automated, such as sending 
reminders or generating reports.
 Compare the AI or automation features with the organization’s 
specific needs to avoid underuse or overcomplication.
Recommended Read: Simplify Contract lifecycle Management with AI
2) Map Contract Lifecycle Stages
Knowing the stages of a contract lifecycle management from creation to 
completion is important for proper management. Mapping these stages 
helps track progress and responsibilities.
 List all steps a contract goes through, from drafting and review 
to approval and renewal.
 Identify who is responsible for each stage and what actions are 
required.
 Highlight stages that may take longer or need extra attention 
to prevent delays.
3) Consolidate Contract Storage
Keeping all contracts in one place makes it easier to find and manage 
agreements. Consolidated storage also reduces the risk of lost or 
misplaced contracts.
 Gather all existing contracts from different teams or locations 
into a single system.
 Organize contracts by type, date, or department to make 
searching faster.
 Set rules for storing new contracts to keep the system 
consistent over time.
4) Define Approval Roles Clearly
Defining approval roles ensures a smooth and efficient contract process. 
When everyone knows exactly who is responsible for approvals and 
ensure a collaborative contract management process.
 Assign approval responsibilities for each type of contract and stage.
 Decide the order of approvals if multiple people are involved.
 Communicate roles and responsibilities to all team members 
using the system.
5) Set Up Alerts for Critical Dates
Alerts help track important deadlines like renewals, expirations, or 
payments. Timely notifications reduce missed opportunities and contract 
lapses.
 Identify key dates for each contract, including start, renewal, and 
end dates.
 Configure alerts in the system to notify relevant teams ahead of 
time.
 Adjust alert timing based on the importance of each contract 
milestone.
6) Provide Role-Specific Training
Give your team role-based training that helps them use the system 
effectively for their daily tasks. Focus on how each role can leverage 
key features to review, approve, or track contracts easily.
 Conduct short, role-specific training sessions that cover essential 
functions.
 Include simple practice exercises to help users get 
comfortable with the system.
 Offer continuous support through FAQs, quick guides, or a 
helpdesk for any follow-up questions.
7) Review and Refine After Launch
After launching the system, reviewing its performance and making 
improvements keeps it effective. Refining processes ensures the 
application meets evolving needs.
 Collect feedback from users about difficulties, delays, or missing 
features.
 Check system reports to identify contracts that may not be tracked 
properly.
 Make small adjustments regularly to improve efficiency and 
usability over time.
How to Deploy CLM 365 Into Your Existing Workflow
Integrating CLM 365 into existing business processes is simple and 
straightforward. The following points outline how to get started.
 Analyse the current contract lifecycle to spot slow points or 
challenges in the process.
 List all existing tools used for drafting, approvals, and storage to 
see how CLM 365 can fit in.
 Enable CLM 365 and connect it with Microsoft 365 to access all 
integrated features.
 Link the system with Outlook, Teams, SharePoint, MS Copilot, and 
the Word plugin for easy contract management within familiar 
apps.
 Set up approval workflows, assign role-based access, and activate 
automatic notifications for key contract dates.
 Train the team using hands-on examples and simple guides to 
help them adapt quickly.
 Monitor system performance, measure improvements in efficiency, 
and refine workflows as needed.
Tip: CLM 365’s AI agent can automatically review contracts, highlight 
critical risks, obligations, and key clauses, reducing the need to read 
each contract manually.
Conclusion
A contract management application helps businesses save time, reduce 
errors, and improve compliance by streamlining every step of the contract 
lifecycle from creation to approval and renewal. With the right tool in 
place, your team can stay organized, collaborate better, and make 
smarter decisions without manual effort.
Start simplifying your contract process today with CLM 365. Get your 
14-day free trial. No credit card details required!