Construction projects are, by their nature, complex. It’s critical for parties entering any construction agreement to prioritize the review and negotiation of their contracts. Contracts form an integral element of any agreement.
With more providers offering contract review software, it’s important for every contractor to understand and scrutinize the available contract review tools that can help ensure seamless operations. Here’s what you need to know about the contract review process.
What Is a Contract Review Process?
Even among elite building contractors, a basic contract may require extensive negotiation and review. As such, contract review is a process undertaking by professionals or smart tools to identify and analyze the main provisions within an agreement. The process often involves a lawyer who reads and understands the contract terms and conditions before highlighting relevant information and risks.
Contractors should never sign a contract before reading and checking that it doesn’t expose them to any future risk. While a manual contract review process is an option, it’s often slow and tedious, requiring you to analyze the contract provisions and implications. The good news is that you can automate this process using contract review software.
Stages of A Contract Review Process
The pre-review or preparation stage is the first phase of the contract review process. Here you clarify all contract-related facts, including the contract’s feasibility and projected risks. Your business needs to define the project’s objectives and the implications of risks.
The second stage involves carefully reviewing the contract terms, payment schedules, and duration. Your company’s team should use available contract tools for diving into the contract details to check that no details are missing.
The negotiation period allows you to agree on any changes to the contract with the other party before agreeing. The final agreement should work for you and the other party. Some of the top contract review software include:
Contract Review Software: What Does It Do?
Contract review software, like BlackBoiler, utilizes machine learning and artificial intelligence to identify the contract’s key provisions. This contract review software can also use keyword analysis or natural language processing to examine and highlight essential aspects of the contract. Unlike other contract review software, BlackBoiler’s patented technology is able to take this one step further by not only identifying and highlighting areas of a contract, but also redlining a contract just like a human would.
Contract review tools enable your business to streamline and improve complex processes, assisting your lawyers in reviewing the contract terms within minutes or hours. This software simplifies information, making it easy to read and flag identify areas of concern and red flags. You can customize contract review tools to match your business industry’s unique needs.
Your contract review software should provide a legal front door that links to the rest of the business. It should also exhibit accelerated reviews with a no-code solution.
Things To Consider When Your Business Receives A Contract
Contracts can fail and plunge your business into trouble if things don’t work out as expected. To avoid such situations from arising, here’s a list of things to consider if your business receives a contract;
- Establish expectations
- Negotiate the contract terms
- Keep things simple, precise
- Be ready to walk away if it’s the only leverage
- Ask if anything is unclear
- Seal the deal by putting it in writing
- Avoid making assumptions
Your Contract Review Process is Now in Good Hands
The contract review process is essential for all companies, especially construction companies, since it helps streamline any issues in the document that may affect you negatively in case of unforeseen circumstances.
At BlackBoiler, we take care of all your contract review needs to ensure that you undertake your projects seamlessly. Contract Review Software: How it Can Optimize your Contracting Process
