7 Tips How to Improve Live Contract Negotiation (&Examples)
Introduction
Long, drawn-out live contract negotiations where you don’t reach a result can drain your time, energy and patience. Whether you’re finalizing terms with a new SaaS vendor or ironing out details with a new customer, the process often feels slow and frustrating. But it doesn’t have to be this way.
By applying a few straightforward communication and contract negotiation strategies, you can streamline your live (online or in-person) negotiations, keep everyone focused and reach fair agreements faster. In this article ‘7 Tips How to Improve Live Contract Negotiation (& Examples)’, we will cover:
- seven tips to help you run more efficient live negotiations,
- then, answer five common questions that many small and medium-sized businesses (SMEs) have asked us; and
- finally, we’ll walk through a brief scenario showing how these tactics work in a real-world SaaS context.
7 Tips for More Effective, Streamlined Live Negotiations
1. Prepare in Advance
Preparation might sound obvious, but it’s often overlooked. Before you jump on a call, know exactly what you want—and what you can live without. Gather all the details that matter: pricing tiers, subscription lengths, service-level agreements (SLAs), data security requirements, and any key terms unique to your business model.
For instance, if you’re negotiating a SaaS contract, determine your must-have SLA features (like 99.9% uptime or a dedicated support channel) and understand how much you’re willing to pay for them. Knowing these details ensures you’re not scrambling during the call. You’ll respond faster to counteroffers and will not waste time on irrelevant points. The clearer your objectives, the quicker you can confirm or reject proposals on the spot.
To prepare effectively for our live negotiations, prepare thoroughly. Review your internal needs, compare the vendor’s standard terms to industry benchmarks and decide where you can compromise. Also, anticipate common sticking points – like automatic renewal clauses or extra fees for additional users – so you’re ready to address them. Thorough preparation reduces confusion and sets the stage for a focused, productive negotiation.
Be ready for the tough questions. See the Harvard Law School Negotiation preparation checklist here.
2. Set an Agenda and Stick to It
Without a clear roadmap, negotiations can meander and waste time. A simple agenda shared in advance keeps everyone aligned. List the key issues—such as pricing structure, onboarding timeline, renewal conditions and data protection terms – and let all parties know these are the topics to be covered.
When the call starts, refer to the agenda right away. If someone drifts off-topic (“Let’s also discuss a potential partnership feature for next year…”), you can steer them back: “That’s interesting, but let’s finalize the current subscription terms first as per our agenda.”
An agenda not only saves time but also keeps the atmosphere professional and respectful. Everyone knows what to expect, which reduces unnecessary back-and-forth. With a clear roadmap, you’re less likely to get bogged down in small details that don’t affect the final outcome.
3. Use Clear, Concise Language
Complex legal or business jargon and vague language can slow negotiations down. Stick to plain, direct language whenever possible. If you encounter a technical or legal term, clarify it right away. For example, if the vendor refers to a “Indemnification Clause” or “SLA” ask them to explain: “Can you clarify what this clause means in practical terms for our liability and what exactly the SLA will entail?”
By simplifying terms, you ensure both sides understand each other. Misunderstandings often lead to follow-up calls or extra email chains to fix what could have been settled earlier. Keep it simple: “We need a 48-hour response time for support tickets” is clearer than “We request timely fulfillment in accordance with standard SLA metrics.” Clear language reduces confusion, makes it easier to achieve agreement and speeds up the entire process.
Also, don’t just refer to a contract clause, memo or whitepaper that was shared, but explain in your own words.
4. Assign Roles and Responsibilities Within Your Team
If you have several team members on your side, assign clear roles before the call. One person should lead the conversation – this is the voice who guides the agenda and addresses the main points. Another can handle real-time edits to the contract (if you’re screen-sharing or using a collaborative doc), ensuring that agreed-upon changes are captured immediately. A third team member might be a specialist in a particular subject, etc.
This division of labor prevents people from talking over one another and ensures nothing falls through the cracks. For example, while the lead negotiator discusses the price tiers with the vendor, the notetaker can record the agreed terms, and the editor can update the master document in real-time. When everyone knows their role, the conversation flows smoothly. By the end, you’ll have a clear record of what happened and fewer reasons to schedule a second call.
When you know a particular point could be sticky, ensure that you have a specialist that joins the call to show your willingness to explain and to try yo reach agreement on the spot. Before the meeting, also ask the counterparty if their specialist is able to join so they can discuss the specific subject.
5. Actively Listen, Ask Great Questions and Validate the Other Side’s Points
Negotiations aren’t just about what you say; they’re also about how well you listen. When the other side speaks, give them your full attention. Summarize their points to show you’ve understood: “Great to hear that if we agree to sign a two-year contract, we will receive a 10% discount.”
By validating their input, you build trust and minimize friction. The other side feels heard and respected, making them more open to meet you halfway. If a vendor says they can’t offer more storage at the basic tier, acknowledging their position – “I hear you. Additional storage is challenging at this price point” – can calm tensions and open the door to creative solutions.
Don’t for get the tip to say “That’s Right” when your counterpart makes a great point. Read our article about this here.
Active listening also helps you avoid going in circles. When everyone feels understood, fewer clarifications are needed later. It’s a subtle step that speeds up the process by preventing repeated explanations or misunderstandings.
6. Leverage the Right Technology
The right tools can save a lot of time in negotiations. For example screen-sharing allows both sides to view and edit the contract simultaneously. Collaborative documents or contract management platforms let you highlight text, propose changes, and record agreements as they happen. Real-time chat tools can clarify small points without derailing the conversation flow.
Let’s say you are discussing a SaaS license agreement, you can highlight the pricing clause live, increase the user count and watch the other side’s response in real-time. This eliminates the need for lengthy email follow-ups after the call. Technology also helps ensure everyone is literally “on the same page,” reducing miscommunication and speeding up finalization.
Just remember to test your tools beforehand. Technical glitches waste time and damage the negotiation’s momentum. Ensuring everything runs smoothly keeps the process moving and makes it easier to reach an agreement.
7. Know When to Take a Break
Sometimes you hit an impasse. Maybe the vendor won’t budge on a crucial data security or liability clause or you can’t agree on cancellation terms. Instead of pushing on and raising tensions, suggest a short break: “Let’s take five minutes to review these points individually. We’ll come back with fresh perspectives.”
Stepping away from the screen allows everyone to rethink their positions. When you return, both sides might be more willing to compromise. A brief pause can save you from hours of drawn-out debate. Instead of forcing a decision amid rising frustration, you come back calmer and more solution-oriented, ultimately reaching an agreement faster.
5 Common Questions (and Answers) About Live Negotiations
1. How do I handle a party that dominates the conversation?
Use your agenda to maintain structure. Politely interrupt if they wander off: “I appreciate your input. To stay on track, let’s confirm the billing cycle terms first.” If dominance persists, consider switching negotiation formats, like proposing a written redline exchange before the next call. This allows for more balanced input and prevents one-sided monologues.
2. What if I don’t understand a technical or legal term they mention?
Ask for clarification immediately: “Could you clarify what this ‘auto-renewal clause’ entails?” A moment of asking now saves you from bigger problems later. Being upfront about what you don’t know shows professionalism and ensures no hidden surprises remain after signing.
3. How do I keep everyone engaged and focused?
Start by setting a time target: “We have one hour to finalize the user limits and support terms.” Recap progress after each point: “Great, we agreed on a 12-month term at $X per month. Next, let’s finalize the onboarding schedule.” Timeboxing and summarizing key decisions keep the conversation efficient and participants engaged.
4. What if I feel pressured to accept unfavorable terms just to end the call?
Acknowledge the urgency without conceding too quickly: “I know we’re close to wrapping up, but I need a moment to confirm these terms align with our internal policies.” Suggest a brief pause or a follow-up call if needed. It’s better to take a bit more time now than sign a bad deal you’ll regret later.
5. How can I ensure the terms agreed upon are actually implemented afterward?
End the meeting by summarizing important agreed terms, who is responsible for what and the next steps. Then send a written summary email or updated contract draft immediately after. Having a document both sides can refer to prevents “he said, she said” disputes and keeps everyone accountable for their promises.
A Quick Scenario: Negotiating a SaaS Contract in Live Negotiations
Imagine you run a growing marketing agency, and you’re negotiating a SaaS contract for a new project management platform. You’ve done your homework: you know your budget, the required user count, must-have integrations (like linking to your CRM), and the level of customer support you need.
Preparation:
Before the call, you decide that you need a minimum of 30 seats at a certain monthly rate. You also need a guaranteed response time for support tickets, integration with your CRM, and a flexible cancellation clause.
Agenda:
You send the SaaS vendor a short agenda:
- Pricing and number of seats
- Support response times and escalation policies
- Integration with CRM tools
- Cancellation and renewal terms
Clear Language:
On the call, you say, “We need at least 30 seats at $X per user per month, with a guaranteed 24-hour support response time. Can you confirm that’s possible?” This straightforward request helps the vendor respond faster. They might say, “We can offer 30 seats at that rate, but our standard support time is 48 hours.”
Assigning Roles:
In your team, you’re the lead negotiator. Your colleague is ready to update the shared Google Doc with any changes. Another teammate listens and takes notes on agreed points. While you talk pricing, your colleague highlights the relevant clauses in the contract so everyone can see what’s changing.
Active Listening:
The vendor expresses concern about meeting the 24-hour support response. You summarize: “You’re saying 24 hours might be tight. How about 36 hours as a compromise?” This shows you listened and are open to meeting them halfway.
Leveraging Technology:
As you discuss these terms, you screen-share the contract. Your teammate edits the pricing clause and support terms in real-time. Everyone sees the new wording instantly. No follow-up emails are required later to confirm what was changed.
Taking a Break:
If you reach a deadlock—say, the vendor wants a strict auto-renewal clause, and you want a more flexible cancellation policy—suggest a short pause. “Let’s take five minutes so we can consider some options.” After the break, you might propose a partial compromise: a 30-day cancellation notice instead of 60 days. The vendor, now calmer, might agree.
By the end of the call, you summarize: “We’ve agreed on 30 seats at $X per month, a 36-hour support response, full CRM integration within 30 days of signing, and a 30-day cancellation notice. I’ll send an updated contract draft today, and you’ll review it by Friday.” Sending that draft immediately seals the verbal agreement in a written form, reducing any risk of confusion.
Building Confidence Over Time in Live Negotiations:
These tactics become easier the more you use them. After a few live negotiation sessions, you’ll know when to push back, when to pause, and how to keep the conversation clear and constructive. Over time, refine your agenda templates, prepare standard clauses, and train your team to handle their roles seamlessly.
Improving your negotiation approach doesn’t just save time. It also helps maintain positive relationships with vendors and clients, who appreciate smooth, respectful interactions. Everyone wins when deals close faster and with less friction.
Also, don’t forget to check out our list of negotiation Books to read to become a better negotiator.
Conclusion:
Long live negotiations where you reach no results don’t have to be your standard. By preparing in advance, setting a clear agenda, speaking plainly, delegating tasks within your team, listening closely, using the right tools, and knowing when to step back, you can drastically shorten negotiation times and reduce stress.
This structured approach leads to fairer deals struck in less time. Instead of hours or days spent ironing out small details, you’ll wrap up contracts more efficiently. You’ll protect your interests and keep your partners happy, setting the stage for productive, long-term relationships.
Need help?
For help with your contract negotiations and related processes, reach out to us via lowa@amstlegal.com or book an appointment with Robby Reggers here.
9 Actions to End the Year Strong in Contract Negotiations
Introduction
As the end of Q4 2024 approaches, legal and commercial teams face pressure to finalize contracts before the holiday break. The final weeks of the year present unique challenges, with tight deadlines, competing priorities and holiday disruptions. Success depends on aligning your team and prioritizing the most critical contracts with a focus on maintaining clear communication throughout the process.
With 20 December 2024 as the (most likely) last day to finalize contracts, prioritizing deals that directly impact your company’s goals is essential. At the same time, addressing dormant deals and preparing for next year when time allows will ensure a smooth transition into 2025.
What We Will Cover in This Article
To finish the year strong and enter 2025 with momentum (while feeling rested), you need to focus on the following now:
- Bring your teams together to align on priorities and processes.
- Devote your full attention on clear communication, both internally and with customers.
- Prioritize Q4 2024 deals, address dormant contracts and prepare Q1 2025 deals if time permits.
In this article, we will outline 9 actionable tips to help you organize your efforts, streamline workflows, and avoid a year-end scramble.
9 Actions to Close Out the Year Successfully
1. Align Priorities Across Teams
The first and most crucial step is to bring all relevant teams together—Legal, Sales, Procurement, and Operations. Without alignment, resources can be wasted, and critical deals may slip through the cracks.
- Host Priority Meetings: Convene key stakeholders to discuss active contracts and set clear priorities.
- Set Realistic Timelines: Share anticipated closing dates and deadlines, taking into account holiday schedules.
- Address Bottlenecks Early: Identify potential obstacles, such as approvals or customer feedback, and plan to resolve them.
- Document Priorities: Create a shared list of deals and communicate expectations to all involved.
Why This Matters: A lack of alignment leads to confusion and delays. Clear communication ensures everyone is working toward the same goals.
2. Finalize Q4 Deals That Matter
After aligning priorities, focus your efforts on closing Q4 2024 deals that are most important to your company’s financial and strategic objectives. These contracts often involve high-value agreements or partnerships where delays could have serious consequences.
- Assign dedicated resources to critical deals.
- Regularly update internal and external stakeholders on progress.
- Use the tools and processes your company has designated for tracking and approvals.
Key Question: Which deals are tied to year-end financials or essential company objectives?
3. Prioritize High-Value Deals
Within the Q4 pipeline, high-value deals deserve special attention. These agreements often require more complex negotiations, multiple approvals, or input from senior decision-makers.
- Set weekly check-ins with deal teams to track progress.
- Identify potential risks or delays early and create contingency plans.
- Ensure executive stakeholders are available for final approvals.
Why This Matters: High-value deals typically have the greatest impact on your company’s year-end performance and strategic goals.
4. Push Small Deals to Close Quickly
While high-value contracts demand attention, small deals should not be overlooked. These agreements are often easier to finalize and can contribute to year-end results with minimal effort.
- Set a goal to close smaller contracts early in December.
- Automate workflows where possible to speed up execution.
Why This Works: Small deals are low-hanging fruit that boost momentum and free up resources for larger negotiations.
5. Address Dormant Deals Immediately
Dormant contracts – those that you have chased but have not heard back from or are unresolved – should be reviewed and addressed now.
- Discuss and determine if these deals can be realistically closed before year-end.
- For contracts that cannot be finalized, communicate plans to defer them to 2025.
Key Tip: Don’t let dormant deals distract from critical Q4 priorities. Clear them out to create focus and clarity.
6. Communicate Proactively with Customers
Proactive communication is essential for keeping deals on track. Schedule touchpoints with high-priority customers to confirm timelines and address any outstanding issues.
- Share clear expectations for closing terms and deadlines.
- Follow up consistently to maintain momentum.
- Ask if certain specific closing requirements are important for the customer – for example signing protocols & timing.
Why This Works: Clear communication reduces uncertainty, builds trust, and helps avoid last-minute surprises.
7. Enable Your Team with Clear Instructions and Tools
Ensure your team has access to the right tools and a clear understanding of how to use them. This includes contract management systems, signing tools, and repositories.
- Save contracts in designated locations for compliance and easy access.
- Track progress on negotiations, approvals, and signatures using your company’s approved tools.
- Refresh your team on contract thresholds, policies, and escalation processes.
Why This Matters: Standardized workflows minimize confusion and ensure contracts are executed efficiently.
8. Review Processes, Not Just Contracts
A successful year-end close depends on streamlined workflows, not just finalizing agreements. Take time to review and address any gaps in your processes.
- Are all approvals aligned and documented?
- Have compliance requirements been met?
- Are decision-makers available for final signatures?
Why This Matters: Process inefficiencies can derail even the most well-negotiated deals.
9. Review Q1 2025 Deals Only If Time Permits
Finally, if your team has capacity, begin preparing for Q1 2025. Use this time to lay the groundwork for contracts that will need early attention next year.
- Draft templates and standard terms.
- Schedule initial meetings with stakeholders for early January.
- Address any known issues that could cause delays.
Key Tip: Keep your focus on 2024 until all critical contracts are on track to close.
Conclusion: Focus on What Matters Most
As the year draws to a close, success hinges on prioritization and clear communication. Focus your efforts on:
- Bringing your teams together to align priorities and streamline processes.
- Closing critical Q4 2024 deals that directly impact financial and strategic goals.
- Resolving dormant deals or deferring them to 2025 with a clear plan.
- Preparing for Q1 2025 only after year-end priorities have been addressed.
By following these steps and equipping your team with the right tools and processes, you can ensure a smooth year-end close and start 2025 with confidence.
We can also recommend a great article on this subject by Bari Williams, Head of Legal & Legal Content at LegalOn Technologies, see link on contractnerds.
For help with your contract negotiations and related processes, reach out to us via lowa@amstlegal.com or book an appointment with Robby Reggers here.
10 Tips You Need to Know to Improve Your Contract Templates
1. Introduction
Sales teams, entrepreneurs, procurement specialists and legal professionals all share one common need: contracts that are clear, efficient and enforceable. When done right, they accelerate deals, minimize risks and build trust. Contract Templates are great to achieve this.
These legal documents do not only formalize agreements but also protect business interests by clearly defining risks, responsibilities and expectations between the contractual parties. However, as important as contracts are, the process of managing them can be complex, time-consuming and inefficient.
The solution is standardizing contracts in templates. This can be in the form of template NDA’s, Custom Agreements, General Terms & Conditions, Master Services Agreements, Order Forms or even letters. The key is to create easy to use, not overly complicated (and short where possible!) templates that cover the company’s risk. A great practical book on this is ‘Sign Here: The enterprise guide to closing contracts quickly’ by Alex Hamilton.
Creating and maintaining strong, streamlined contract templates can help companies enhance efficiency, reduce legal risks and optimize resource allocation. Also see my article on this here. However, simply having templates is not enough. Organizations need to ensure that they are accessible, up-to-date and aligned with both legal and business objectives.
This article series, “10 Tips You Need to Know to Improve Your Contract Templates”, was written to help businesses tackle these challenges head-on. We will explore key strategies to improve contract templates, ensuring they become valuable tools that drive efficiency, consistency and strategic growth.
Let’s start by understanding why we need templates in the first place and how to overcome common issues that arise from their use. This Introduction article will be followed up by 10 more articles including a practical, step-by-step guide explaining how to improve templates, creating better processes and rolling them out successfully.
2. Why we need (better) Contract Templates
Companies need to work on avoiding overcomplicating contracts and to focus on improving contract workflows.
One effective way to achieve this is by creating standardized templates for the company’s most common agreements. For example, Non-Disclosure Agreements (NDAs), Terms & Conditions (T&C), Data Privacy Agreements (DPA), Service Level Agreements (SLA), Master Services Agreements (MSAs) etc.
Standardized contract templates can also significantly reduce the time spent on repetitive drafting. It enables faster contract creation, review, and approval, which not only speeds up business processes but also frees up valuable resources for more strategic tasks.
Moreover, contract templates help maintain consistency in the language, terms, and legal safeguards across all agreements, reducing the risk of errors, contradictory clauses, and legal disputes. By ensuring that key legal protections are consistently applied, contract templates minimize legal risks and contribute to more efficient, reliable contract management overall.
However, despite the clear benefits of using standard contract templates, many companies struggle with effectively implementing them. The correct use of these templates often remains a stumbling block, and failure to address common issues can lead to inefficiencies, delays, and legal risks.
In the next paragraphs, we will first highlight what the 4 most common issues are with Contract Templates, secondly what the consequences are of these issues, finalizing with explaining are the 9 advantages of having great (so not complicated & long) Contract Templates.
3. Common Issues with Contract Templates
While standardized contract templates can improve efficiency, many organizations encounter obstacles that prevent them from fully realizing their potential by using contract templates. In practice several factors can hinder the successful implementation and utilization of such contract templates.
Four of the most common issues with contract templates include the following:
Complexity
Overly complex and lengthy templates often result in confusion and create more questions than answers for the commercial team who use the templates in practice. The language may contain specific legal terms or overly complex wording, that can be difficult to comprehend, which in turn can slow down the contract review process. We also often spot that templates are outdated and no longer fit with the products & services that the company is providing.
Accessibility
Locating and using the correct template can be a challenge. The absence of a clear system for accessing the right templates often results in the use of outdated or unauthorized versions, creating further inconsistencies.
Limited Resources
Many businesses lack the resources to dedicate time to continuously improve their contract templates. This lack of investment often leads to templates that are outdated or irrelevant to current business needs.
Excessive Legal Review
Despite having templates in place, Legal often still need to review and negotiate a high volume of contracts due to the lack of well-defined processes and the issues mentioned above. This increases the burden on the Sales, Procurement & Legal department and slows down the contracting process.
The existence of these obstacles highlights the importance of having a clear strategy and process for managing contract templates. Understanding these common issues is a first step towards addressing them and ensuring smoother contract workflows.
4. Consequences of Contract Template Issues
The issues described above surrounding contract templates can have significant, far-reaching consequences for businesses in several areas. The idea of having solid contract templates in place relies heavily on whether the templates are easy to use, if they are consistent and whether they have been reviewed and continuously get managed properly. Mainly, this revolves around inefficiencies connected to the contract templates due to poor contract template management.
Incorrect, overcomplicated and long templates result in the following issues:
Delays in Contract Creation, Negotiation and Closing
Complex and outdated templates can prolong the time it takes to finalize contracts due to the need to involve legal professionals. If the template is too complex, it won’t be possible for anyone to use the template at issue. Additionally, this can cause delays that may disrupt operations and hinder business growth that otherwise would have been possible.
Increased Risk Exposure
Contracts that are inconsistent or not properly reviewed make the company vulnerable to legal and financial risks, including disputes, compliance issues, and unfavorable terms. This is especially the case if there are several contract templates that cover different areas.
Higher Workloads
The inefficiencies of managing contract templates translate to additional work for Legal and other involved departments. This means that they must spend more time resolving problems, negotiating terms, and handling unnecessary contract revisions since they are the only ones who are fit for the job. In turn, this creates less time for them to focus on more complex, high-value deals.
Strained Business Relationships
Poor contract management can also erode trust with clients, vendors, and partners. If the contracting process is slow, confusing, or fraught with errors, it can negatively impact business relationships and damage the company’s reputation. For instance, the counterparty can get the impression that the inconsistent templates may reflect your way of doing business.
In other words, the consequences of poorly managed contract templates extend far beyond operational inefficiencies. To prevent these issues, companies need to reassess their contract management strategies and prioritize the development of high-quality templates.
5. Results of having State-of-the-Art Templates
When businesses take the time to develop and maintain strong contract templates, they unlock a wide range of benefits that positively impact both their day-to-day operations and long-term strategic goals. These benefits arise from the ability to standardize contract processes, reduce legal risks, and enhance collaboration between departments.
Nine key advantages are:
Shorter Contract Negotiation Times
High-quality templates serve as a strong starting point for contract negotiations, eliminating the need to negotiate basic terms and conditions from scratch. Since most of the standard clauses are pre-approved and align with company policy, both parties can focus on customizing specific deal points rather than revisiting the entire contract.
Increased Efficiency and Simplified Contract Handling
Streamlined templates reduce the time and effort required to draft, review, and approve contracts. This reduces the administrative burden on both Legal and business teams, allowing them to focus on higher-value tasks such as negotiating complex deals or working on strategic initiatives. In fast-paced industries, this can provide a critical competitive advantage.
Reduced Workload
With standardized, well-organized templates, the Legal department can reduce the number of contracts that require individual review. This means that only the most complex or high-risk contracts will require in-depth legal review. It allows the Legal team to focus on more strategic activities, such as risk management or regulatory compliance.
Enhanced Consistency and Contract Quality
High-quality templates ensure that contracts across the organization are aligned with company standards, reducing the risk of errors and inconsistencies. Enhanced consistency also helps to build trust with external parties, as they can rely on the fact that the company’s contracts follow a predictable structure.
Risk Mitigation
Strong contract templates serve as a built-in risk management tool, ensuring that all agreements contain the necessary legal safeguards to protect the company’s interests. By ensuring that contracts contain the necessary legal safeguards and are compliant with applicable regulations, companies can better manage their legal and financial risks.
Decreased Legal Costs & Improved Cost Efficiency
With fewer contracts requiring in-depth legal review, companies can reduce their legal expenses and allocate their budgets more efficiently. This cost efficiency allows companies to allocate their legal budgets more effectively, focusing on complex matters that truly require expert legal input.
Stronger Business Relationships
A smooth and transparent contracting process enhances trust and collaboration with clients, vendors, and partners. It also reduces delays and confusion, making it easier to finalize agreements quickly and without unnecessary back-and-forth.
Optimized Resources
Well-organized contract processes help businesses make the most of their available human and financial resources. By standardizing and streamlining contract workflows, companies can minimize the time and effort spent on repetitive tasks, allowing teams to focus on strategic growth initiatives rather than administrative burdens.
Empowered Commercial Teams
With easy access to effective contract templates, commercial teams can take the lead in negotiations without the constant need for legal intervention. When teams have access to well-structured, pre-approved templates, they can confidently lead discussions and close deals faster.
In summary, adopting state-of-the-art contract templates into your business processes leads to a wide range of benefits. Not only do they increase efficiency and reduce legal costs, but they also improve the consistency and quality of your contracts. By streamlining contract workflows and fostering better business relationships, high-quality templates help companies mitigate risks, optimize resources, and accelerate growth. Implementing these templates is a smart investment that delivers long-term operational and strategic advantages.
6. Experienced Results of Contract Optimization
Throughout Robby Reggers’ 20-year career advising businesses on contract optimization within legal departments, the most successful outcomes were achieved by companies that embraced a collaborative methodology for template optimization. By refining contract templates with input from across the organization, companies can ensure that their contracts are not only legally robust, but also fully aligned with business objectives and responsive to customer needs.
For help improving contract templates, negotiations and related processes, reach out to us via lowa@amstlegal.com or book an appointment with Robby Reggers here.
How to Negotiate Contracts Faster Before Q3 Ends
Are you struggling to get your contract signed before Q3? As someone who has been working in contract law since 2004, I understand how stressful the last week of the quarter can be. You’re trying to close deals, manage client expectations and meet internal deadlines. Over the years, I’ve refined a few strategies to help speed up the process and keep things moving smoothly during this critical period.
In this article ‘How to Close Contracts Fast Before Q3 Ends’ (a follow up on this article), I will share practical tips I’ve gathered throughout my career.
This will help you negotiate and close your contracts before Q3 ends – whether you’re a legal professional or part of the sales / procurement team.
1. Groundwork: Setting the Foundation for Smooth Contract Closures
Before we get into the last-minute strategies, it’s important to acknowledge that no matter how prepared you are in the final week of the quarter, the real work begins long before that. Over the months leading up to these peaks, the following foundation should be laid out – so you can negotiate contracts faster (and better), and act quickly & decisively when time is of the essence.
The four pillars of better contract processes, developed by AMST Legal, are:
# Create Standard Templates
One of the simplest yet most effective ways to streamline the contract process is to use standardized templates. As I also wrote in this article, when teams work with simple, pre-approved, consistent language, it cuts down on back-and-forth reviews and will greatly improve contract negotiations. You will know exactly what is in each contract, with the right risk profiles and internal teams are trained on using it. If your organization doesn’t already have these, make creating them a priority for the future. It will be a game-changer for your company.
# Set Minimum Value Limits for Negotiations
During these peaks, it will be impossible for legal to help out the commercial teams and review & negotiate all contracts. It is therefore important that teams use the standard templates as much as possible. A great tool for this is setting agreed minimum contract value in the company, also see this article by Ironclad on this subject. For smaller contracts, also consider limiting negotiation points or automating approvals for low-risk items. This has saved me countless hours over the years and allows legal teams to focus on more complex, high-value contracts.
# Improve Internal Communication and Training
Lack of communication is often the reason of delayed contracts. By establishing clear communication channels between legal, sales and management teams, you can avoid last-minute surprises. Regular training sessions also ensure that everyone understands the process and the contract standards, which makes a huge difference when things get hectic at the end of the quarter. Consequently, internal teams will feel more confident when negotiating contracts.
# Implement Legal Tech Solutions
If you set up the above, but processes still need to be improved due to a high volume of contracts, it’s time to embrace legal tech solutions. Tools like e-signature, contract management or AI Contract Review can significantly speed up your workflow and will help you negotiate contracts faster. I’ve seen contracts get stuck for days simply because (i) someone was out of the office and couldn’t physically sign a document or (ii) we couldn’t find the relevant document to sign
2. Prioritize High-Volume and Strategic Deals
As the quarter draws to a close, it’s time to get laser-focused. You simply can’t negotiate all contracts at once, and that is perfectly normal. The key is to prioritize high-volume or strategically important deals. This is where you will get the most return on your time investment.
How to Identify Key Deals
I always ask myself (and my team) two questions at this stage:
- Is this contract actually closing by the end of Q3?
- Is this a high-volume or high-value deal?
If a contract doesn’t meet these criteria, it’s not worth your time right now. You will waste valuable energy chasing and negotiating contracts that can be closed after the quarter ends. Focus on what you can (and must) win now, and push the rest to next quarter.
Managing Distractions
Distractions are everywhere, especially when the pressure is on. This is the time to train yourself (and your team) to stay focused. Make sure everyone is crystal clear: the goal is to close and only negotiate Q3 contracts, nothing else. If it’s not urgent or relevant to Q3, it can wait. This might seem obvious, but it’s surprising how many teams get sidetracked by low-priority tasks during this crunch time.
3. Clear Communication with Clients and Teams
Communication is critical at every stage of a contract negotiation, but it becomes especially clear when deadlines are looming. You need to maintain transparent, open lines of communication – both internally and with your clients.
External Communication
Clients don’t always understand the urgency we feel in the final week of the quarter. That’s why I make it a point to confirm their needs early on, well before the last-minute rush. I’ve found that directly addressing concerns and reiterating the importance of deadlines can push things along. Clients are more likely to act quickly when they understand the background.
If you sense a deal might be slipping to the next quarter, reach out to your client immediately. Often, an honest conversation can be the difference between closing a deal on time or missing the deadline.
Internal Communication
In a busy period like this, internal communication is just as crucial. Make sure your teams are aligned, especially if multiple departments are involved. The last thing you want is a delay because someone missed an internal approval. I usually recommend daily check-ins or updates to keep things moving.
And if a deal is stuck, escalate quickly. There’s no time for prolonged delays when the quarter is on the line.
4. Encourage Team Collaboration
Complex contracts can’t be handled alone – negotiating contracts is a team sport. I’ve learned over the years that collaboration is the key to overcoming obstacles, especially when time is running out.
Breaking Down Silos
Avoid the temptation to work in silos, especially on tricky deals. Bring in your legal, sales, finance, and operations teams as needed. Each department offers a unique perspective that can help you get past obstacles faster. In many cases, a quick group discussion can solve a problem that might take one person days to figure out on their own.
Address Escalation Matters
If a contract is stuck in escalation, resolve it now. Whether it’s a pricing issue or compliance matter, gather the right people and tackle it head-on. Waiting for someone else to make the call will only waste time.
5. Deadline Management
Nothing is more frustrating than having a contract fall through because of a missed deadline. In the final days of the quarter, every deadline matters – whether it’s a signature, a document approval or a client review.
Plan Ahead
Two of the best pieces of advice at the end of a contract negotiation: 1. ask the counterparty how many days they need to get the document signed. Are there internal processes we need to think of? and 2. plan a few days ahead. You never know what might come up in the final days & hours, so giving yourself a bit of extra time can help prevent last-minute panic. Make sure signatures are collected and documents are finalized before the last day of the quarter, whenever possible.
Avoid Costly Mistakes
Missing a deadline – even a minor one – can push a deal into the next quarter. Not only is this frustrating, but it can also have financial implications for your business. Stay on top of dates, and build in extra time for any last-minute reviews or approvals that might come up.
6. Frequently Asked Questions (FAQs)
Q1. What should I do if a deal is unlikely to close by the end of the quarter?
If a deal isn’t likely to close by the end of Q3, communicate it to the relevant teams and deprioritize it. Focus on deals that have a real chance of closing now. Set expectations with clients for the next quarter and move forward.
Q2. How can I speed up communication between teams?
Hold daily check-ins and use tools like Slack or Microsoft Teams to facilitate quick communication. This ensures everyone is aligned and up-to-date on contract status.
Q3. What legal tech tools should I use?
I highly recommend e-signature platforms, Contract Management / Contract Lifecycle Management Tools and AI Review Tools. These tools reduce delays, help automate workflows and make the signing process smoother.
Q4. Should I negotiate terms at the last minute?
This is a subject for a longer article, but at this stage, avoid extensive negotiations. If terms are still being discussed, escalate the decision or consider finalizing the contract as-is and revisiting the terms in the next quarter.
Q5. How do I ensure my team stays focused?
Keep the team aligned on priorities. Regular check-ins can help ensure everyone is working toward the same goal: closing Q3 deals. Delegate non-urgent tasks to be handled after the quarter ends.
Conclusion
As a legal professional that has been through countless quarter-end rushes, I know how stressful it can be. But by following the tips in this article ‘How to Close Contracts Faster Before Q3 End’ will help. Focus on the right deals, maintain clear communication and keep your team aligned. This way, you can close more contracts before Q3 ends. Stay organized, be proactive and you will be able to meet your goals without the last-minute panic.
If you follow these tips, you’ll not only survive the end-of-quarter peak, but you’ll also set yourself up for success in the quarters to come.
Please reach out to us via +31650608964 or send an email to lowa@amstlegal.com if you need more information or advice about this subject.
Don’t Sign That NDA Yet! Understand Your Obligations First
Introduction
Ready to dive deeper into Non-Disclosure Agreements (NDAs)? We covered the basics and key elements of NDA’s in part 1 here and in part 2 here we covered four common clauses like Parties, Definitions and the Purpose of NDA’s . Now, let’s explore the crucial confidentiality obligations for the receiving party in an NDA.
Learn how to safeguard your sensitive information during business partnerships with this Article ‘Don’t Sign That NDA Yet! Understand Your Obligations First’.
Quick Facts
Under NDAs, also called confidentiality agreements, parties agree the following:
- Confidentiality Obligations: keep information secret, use it only for the purpose mentioned in the NDA and don’t disclose it to unauthorized parties.
- Maintain Information Security: implement reasonable security measures to safeguard the confidentiality of the information.
- Exclusions: in certain circumstances the confidentiality doesn’t apply, such as publicly available information or disclosures required by law.
- Destruction of Information: when to return or delete confidential information once the purpose is fulfilled.
Although NDAs generally take precedence over the law, specific laws & regulations may apply. Think specific secrecy laws, the GDPR, employment laws and Trade Secret Regulations.
Confidentiality Obligations of Receiving Party
Limited Usage of the Confidential Information
In an NDA, the receiving party has the main confidentiality responsibilities.
This generally includes using confidential information exclusively for the designated “purpose” in the NDA. See our previous article here where we explain why this is important and how to cover the purpose correctly. Doing so ensures safety of keeping the confidential information secret, and makes the recipient refrain from disclosing it to any third parties.
A well-drafted NDA should explicitly restrict the receiving party from not only directly and deliberately misusing or disclosing confidential information but also from doing so indirectly, negligently, or unintentionally.
Extension of allowed recipients
One of the most important parts of the NDA to pay particular attention to is:
‘Who is able to received the Confidential Information’?
As it will often not only be the parties to the NDA itself who need to receive the confidential information, it is important to extend these confidentiality obligations beyond the receiving party itself.
Most common examples of third parties:
- professional advisor like accountants, consultants or lawyers,
- agents, directors, employees, and
- affiliates
Therefore, ensure that you include very clear definitions of third parties that may receive the Confidential Information and under which circumstances.
Usually these circumstances are that these third parties can only receive the confidential information if they have:
- a need to know in connection with the Purpose (as defined in the NDA), and
- the legal obligations of confidentiality and non-use with respect to the Confidential Information substantially similar to the obligations of the Receiving Party under this Agreement.
Maintain Information Security
Realizing that it is important to also protect the security of the confidential information shared is crucial.
If you receive confidential information it is important to understand and agree that it is are required to implement reasonable security measures. This includes technical, physical and organizational measures safeguarding the confidentiality of the information and prevent unauthorized access or disclosure.
Exceptions from confidentiality obligations
Typically, NDAs include certain exceptions to the confidentiality obligations imposed on the receiving party.
Public Knowledge
If the information becomes publicly available (without breach of the NDA), the confidentiality obligations cease to bind the recipient and their affiliates.
Prior Knowledge
The entry of the information into the public domain (without a breach of the NDA) also releases the recipient and their affiliates from confidentiality obligation
Third-Party Disclosure (Including Affiliates)
When the recipient receives information from a third party who has the legal right to disclose it, they no longer need to maintain its confidentiality.
Legal Requirements
An important exception allows the recipient, affiliates, or third parties to disclose the confidential information through a court order or governmental request. Typically, the discloser should be notified before the information is disclosed to comply with the legal process.
Return/destruction of information
When the purpose of sharing confidential information is achieved, the disclosing party may request the return of the disclosed confidential information or the deletion/destruction of the confidential information if it remains in the possession of the receiving party.
For example, the disclosing party can request the receiving party to return copies, samples, and any other tangible materials containing confidential information; and to delete/destroy digital data containing confidential information.
In the current complicated IT setup of most companies, completely eliminating data can be either highly challenging or cost-prohibitive. For this reason, we advise to add wording similar to: parties agree
Specific laws might apply
Although NDAs generally cover confidentiality obligations, it is important o realize that specific laws and regulations may override or complement them in certain situations.
Examples are: secrecy laws, the GDPR, employment laws, and Trade Secret Regulations.
These laws & regulations can impose additional requirements or exceptions so do consider these obligations when agreeing or interpreting an NDA to ensure full compliance. Also see this article from Hogan Lovells on this subject.
Conclusion
While the title of this article ‘Don’t Sign That NDA Yet! Understand Your Obligations First’ might be a bit dramatic, it underscores an important point: NDAs are often underestimated.
Understanding confidentiality obligations under NDAs, particularly for the receiving party, is crucial.
It’s essential not to jump into signing these agreements without fully understanding the potential impact on your business and your ability to operate freely.
By carefully reviewing and understanding your obligations, you can protect your interests, avoid costly legal disputes, and ensure a successful partnership.
Please reach out to us via +31650608964 or lowa@amstlegal.com if you need more information or advice about this subject.
How to Close Contracts Successfully Before Holiday Periods
As we approach the end of Q2, it’s essential for Sales, Procurement, and Legal teams to focus on closing commercial contracts. Imagine this scenario: you’re in the final days of Q2 – almost holidays, and a critical contract worth millions hangs in the balance. The pressure is immense, and every second counts.
To help your teams manage the hectic time before summer holidays effectively, we have laid the groundwork for smoother and better legal processes. Next to great preparation, during the last week we emphasize the importance of maintaining clear communication to ensure your contracts are signed before the end of Q2.
Clear Communication: The Key to Closing Contracts
Transparent and open communication with your customers and internal teams is crucial. Confirm the timing and process needs, address any concerns, and emphasize the urgency of reaching a final agreement. Here’s how you can achieve this:
Actionable Steps:
- Collaborate Closely with Internal Teams: Streamline the contract process by working together. Set daily meetings with clear goals to monitor progress.
- Open and Transparent Communication: Confirm timing and process needs with all stakeholders. Address any concerns promptly and reiterate the urgency of closing the deal.
- Proactive Risk Management: If a deal seems to be slipping into the next quarter, inform both internal and external teams immediately to manage expectations and risks.
Effective communication ensures that everyone is on the same page and working towards a common goal, reducing the chances of misunderstandings and delays. Here are three additional tips to complement clear communication and help you close your Q2 contracts successfully:
1. Prioritize Strategically
Focus on high-volume and strategic deals that are close to closure and must be finalized by the end of the month. Assess each contract’s likelihood of closing within the next week. If a deal seems unlikely to close by the deadline, consider pausing it and picking it up again in Q3.
Key Questions to Ask:
- Is this contract closing next week?
- Should we pause this deal and resume in Q3?
- Are we working on the right deals based on the company’s and Sales department’s top priorities?
By prioritizing strategically, you can ensure that your efforts are directed towards deals that are most critical to your organization’s success.
2. Encourage Team Collaboration
Cross-functional teamwork is essential to overcome last-minute hurdles. Management, sales, legal, and procurement teams must work together seamlessly to resolve any issues that arise.
Best Practices:
- Avoid working solo on complicated deals.
- Collaborate with both internal and external teams for maximum efficiency and alignment.
- Leverage the strengths of each team member to tackle obstacles and escalate matters when necessary.
By promoting collaboration, you can address challenges more effectively and ensure that all team members are aligned towards the goal of closing deals.
3. Manage Deadlines Meticulously
Keep a close eye on deadlines and review the full list of contracts to be signed, along with their requirements (timing, documents, approvals, etc.). Plan ahead to leave room for any errors.
Proactive Measures:
- Monitor critical dates and ensure all necessary signatures and documents are obtained in time.
- Plan a few days ahead to mitigate the risk of missing important deadlines.
- Keep track of all contract requirements to avoid costly mistakes.
Deadline management is crucial to ensure that no critical steps are missed in the final week of the quarter, enabling you to close deals successfully.
Conclusion
Closing deals in the final week of Q2 requires focus, prioritization, clear communication, and teamwork. By following these tips, you can navigate this busy period more effectively and finish the quarter strong.
If you need support managing your contract negotiations, please contact us at AMST Legal.
Unlock Contract Efficiency with a Simple Audit of Your Templates
Introduction
Companies often wonder why they should regularly audit their contract templates. This practice, which we implement regularly, often reveals a goldmine of opportunities for streamlining and improving efficiency of contract flows.
When a client approached us to improve its template customer contract, our first step was to conduct a thorough audit of all the contract templates in use. For instance, in one case, we were able to merge 12 separate templates into a single, standardized template applicable across all countries. In other cases, we’ve found multiple templates for different products or specific templates for government-funded versus non-subsidized projects. These findings underscore a crucial step: before improving your templates, it’s essential to first inventory what templates are in use. Only then can you effectively create or refine your templates for maximum efficiency.
1. The Necessity of Regular Contract Template Audits
Contract templates form the foundation of your business agreements, defining the terms and conditions of your relationships with customers, vendors, and partners. Over time, without regular oversight, these templates will (i) be amended in the organisation – often new templates emerge – without knowledge of management and Legal and (ii) be incomplete due to change in laws and products sold, leading to inconsistencies and legal vulnerabilities. A regular audit helps you:
- Risk mitigation and compliance updates
- Maintaining legal efficiency
- Identifying and eliminating redundancies
- Ensuring consistency across all agreements
- Enhancing negotiation speed and effectiveness
- Reducing legal disputes and misunderstandings
- Standardizing terms and conditions
- Keeping templates up-to-date with current laws and regulations
- Uncovering unauthorized or outdated templates
- Improving overall business relationships through clear and fair agreements
2. Steps to Conduct an Effective Contract Template Inventory
a. Gather Information from All Departments
Your legal department might not be aware of every template in use. Engage with various business units—such as Sales, Partnerships, Procurement, and HR—to gather a comprehensive list. Ask them to provide the exact templates they use daily to ensure accuracy.
b. Categorize Templates
Once collected, categorize the templates by:
- Type of Agreement: Customer, vendor, or partner agreements.
- Product/Service: Specific templates for different offerings.
- Geography: Templates used in different countries or regions.
- Language: Versions in different languages.
- Department: Templates specific to various business units.
- Special Conditions: Templates for specific situations, like government-funded projects versus non-subsidized ones.
c. Evaluate and Standardize
Review each template to identify discrepancies and outdated clauses. Standardize the language and format to ensure consistency across all agreements. This process not only reduces errors but also improves the clarity and enforceability of your contracts.
3. Addressing Common Issues in Customer, Vendor, and Partner Agreements
a. Customer Agreements
- Scope of Services: Ensure a clear description of the services or products provided.
- Payment Terms: Standardize payment schedules and terms.
- Liability Clauses: Update liability and warranty clauses to reflect current business practices and legal standards.
b. Vendor/Procurement Contracts
- Quality and Delivery Terms: Standardize terms related to quality control and delivery schedules.
- Compliance: Ensure all vendor contracts comply with relevant laws and regulations.
- Payment Terms: Regularize payment structures and terms to avoid discrepancies.
c. Partner Agreements
- Roles and Responsibilities: Clearly define the roles and responsibilities of each party.
- Profit Sharing: Standardize profit-sharing mechanisms.
- Exit Strategies: Include clear exit strategies to handle potential dissolution scenarios.
4. Uncovering Unauthorized Templates
During your audit, it’s not uncommon to discover templates in use that the legal or management teams were unaware of. These unauthorized templates, often created without prior approval, can pose significant risks. Identifying and rectifying these situations is crucial to maintaining legal and operational integrity. Ensure that all templates are vetted and approved to align with your company’s standards and legal requirements.
5. Benefits of a Well-Organized Contract Template Inventory
Maintaining an organized inventory of your contract templates offers several benefits:
- Improved Negotiation Speed: With standardized templates, negotiations become quicker and more efficient.
- Reduced Legal Risks: Consistent templates minimize the risk of legal disputes.
- Enhanced Business Relationships: Clear and fair agreements foster stronger business relationships.
Conclusion
Regularly auditing and organizing your contract templates is a crucial step in enhancing your business’s legal efficiency. By taking the time to inventory, evaluate, and standardize your agreements, you can streamline your processes, reduce risks, and build stronger, more transparent business relationships.
For more detailed insights and personalized advice, feel free to contact us or schedule a consultation.
5 Tips How to Get Contracts Signed Faster
Introduction – Why Does It Take So Long To Get Contracts Signed?
The steps from negotiating a contract to signing takes time because of compromises that need to be reached between parties. In B2B negotiations, this is usually also caused by processes that are in place to negotiate and handle contracts. This is why it is so important to implement new processes and make better templates to sign contracts faster in your company.
5 Tips to Get Contracts Signed Faster
After 20 years of experience in this field, I have noticed that the same 5 things will help speed up the contract process from the negotiation stage to the signing stage. Working with many of the Big Tech companies like NVIDIA, Microsoft, Tesla, Google etc., I have learned that they all use the same approach.
It takes a lot of effort to improve contract processes, but we have summarized it in a list of five rules to follow. We have implemented this approach in many companies, and it always works. These steps will make contract processes more enjoyable and efficient.
Hereby our five recommended steps to take to get your contracts signed at least 50 % faster.
1. Work towards the 80/20 Rule of Contract Negotiation
The first rule is the 80/20 Rule which is a guideline for how legal departments should allocate their time and resources when dealing with contracts. Simply said, it means that you train your team to ensure that 80% of your contracts follows the standard template, meaning that only 20% of your contracts is able to be negotiated. A break-down of the best way to set up this 80/20 Rule is as follows:
80 % of contracts: No legal involvement
Your company has ensured that your standard templates contracts are straightforward and standardized enough that they can be handled without any input from the legal team. This includes routine agreements or contracts that follow a well-established template. The idea is to empower the commercial team and relieve legal resources by allowing non-legal staff to manage these contracts.
10 % of contracts: Light Touch of Legal Involvement in the background
These contracts require some legal oversight, but not extensive involvement. The legal team might review the documents briefly or provide occasional guidance. Legal will be the advisor in the background, ensuring that there are no major issues without being heavily involved in the drafting or negotiation process.
Remaining 10 % of contracts: Legal is actively involved
These are the most complex or high-risk contracts that demand significant input from the legal team. Legal professionals will be actively involved in drafting, negotiating, and finalizing these agreements. This ensures that potential legal risks are thoroughly assessed and mitigated.
In essence, the 80/20 Rule in this context is about optimizing the use of legal resources to make the contract management process faster and more efficient. By categorizing contracts based on the required level of legal involvement, organizations can streamline operations, reduce bottlenecks, and ensure that critical legal oversight is available where it is most needed.
2. Create Easy-to-Use Templates
The second rule concerns the importance of using simple, easily usable contract templates. To be persistent with the first rule of dividing up the contractual work between legal and non-legal departments, this rule is crucial, as you focus on contract standards that are straightforward, market practice and user-friendly. This means less comments by external legal departments and it allows non-legal staff to handle contracts with minimal confusion and delays.
To ensure that your contract templates stay simple in daily use, please see the following checklist of contract templates that might need attention:
- Traditional contracts: If you’re still using traditional contracts, consider shifting to an Order Form or similar that references to a General Terms & Conditions, a Master Service Agreement (MSA), or a standard Customer Agreement.
- Separate documents for each country: Using separate contract templates for different countries can complicate the process. That does not have to be the case though, as a template that can be universally applied with some minor adjustments works just as well. That can reduce the complexity when dealing with contracts in more countries.
- Overly Complicated Templates covering all potential risks: If every possible risk is addressed, the template can be too complicated and difficult to use. If a more standardized template that cover the most common and significant risks is used, it is more user-friendly.
If your current templates fall into any of the above categories, you might want to consider revising them to make them simpler and more efficient as that will save time and reduce misunderstandings. That leads to a more efficient contract management process which will save you so much time.
Another step apart from simplifying your templates that can make the process more efficient is to create playbooks. The aim of the Playbooks is to explain and provide alternatives to common clauses. Using Standard Questionnaires is another way of making the process easier. This can reduce the need for lengthy explanations and back-and-forth communications.
By creating easy-to-use contract templates and accompanying tools like playbooks and standard questionnaires, you can significantly reduce the time and effort needed to handle contracts. This approach supports the division of contractual work as outlined in the first rule, making the entire process more efficient and less reliant on legal intervention for most contracts.
3. Delegate Most Legal Work to Commercial Teams
This step stresses the importance of delegating the contract management and negotiation of contracts to the contract owners, i.e. usually the Sales and/or Procurement teams. This delegation aims to streamline processes and empower non-legal departments to handle contracts effectively. This will work especially well if they are provided with great templates (including where possible playbooks)
By shifting the responsibility of contract management and negotiation to the contract owners, they can handle the bulk of the contractual work independently. As the Sales and Procurement teams usually are responsible for initiating, negotiating and managing contracts related to their function, this empowerment is only natural. As Sales and Procurement teams are closer to the commercial aspects of the contracts, they can negotiate more effectively and tailor the terms to meet business need.
This reduces reliance on the legal department solely for every contract-related task and speeds up the process as those departments usually are more flexible than legal.
This delegation streamlines the contract process, optimizes resource use, and ensures faster and more efficient contract handling.
4. Open Communication between Legal and Commercial Teams
The next tip emphasizes the importance of involving relevant teams in the development and implementation of new contract templates and standards. Additionally, teams should meet regularly to keep communicate opportunities to improve the templates and the processes.
When implementing new contract templates, the top-down approach (meaning that teams are forced to use new templates or new ways of working) does not work.
This approach often leads to resistance from the other teams. Instead, when issuing new contract templates or standards, a pro-tip is to actually involve the other teams of the organization and teach them how to use them in their day-to-day work. Doing this might seem inefficient, but involving the teams that will use the new templates and standards is paramount to create practical, user-friendly templates..
Team Involvement
There are many positive ways to involve the team in the development of templates, but most importantly:
- When non-legal team members are involved in the development of the templates, they will be more likely to advocate the correct use of the templates,
- Ask non-legal colleagues if the templates are easy to understand, and change where necessary, which will increase and it is more likely that departments will use the templates,
- If Sales and/or Procurement teams have the opportunity to provide input and feedback, the templates will remain up to date,
- Regular training to inform the teams about the development of templates and asking for input is the key to success.
A top-down approach to impose new contract templates and standards does not work.
As we have noticed in practice and as shown in research, providing training to e.g. Sales and Procurement Teams, while continuously collecting and incorporating feedback, leads to higher adoption rates, improved compliance and more efficient contract management.
This collaborative approach fosters a sense of ownership and engagement among all stakeholders of the company.
5. Create Legal Landing Page and Implement Legal Tech
The last tip to improve and ensure efficiency in contract management and negotiation is (i) to create a centralized repository where all standards are located and (ii) implement legal tech in your organization.
Legal Landing Page
Start with the creation of a legal landing page, which is a centralized repository where all legal templates, guidelines and resources are easily accessible. This helps streamline the process of making deals and ensures that everyone is using the correct and most recent templates. Additionally, it reduces delays and confusion in the organization.
“Where can I find that template again?”
Some examples of essential templates to include in the legal landing page include the following documents:
- NDA
- Order Form
- General Terms and Conditions (T&C) / Master Services Agreement (MSA) / Terms of Use Agreement (ToU)
- Customer Agreement
- Data Privacy Agreement
- Privacy Policy
- Partner Agreement
- Amendment/Variation Agreement
The best approach is to include the most used contract templates in the legal landing page for it to be used the most efficient.
Legal Technology
Once you have implemented the Legal Landing Page and take other steps to improve the legal processes of the company, it is time to implement legal tech in the organization. If you have the budget, invest in a contract management system to centralize, track, and manage all templates and all specific contracts. This improves efficiency, compliance, and accessibility of contract information.
Creating a legal landing page and implementing legal tech can significantly enhance the efficiency and effectiveness of a smaller organization’s legal processes. By providing easy access to essential templates and automating routine tasks, employees can handle many legal functions independently, ensuring consistency, compliance, and scalability. This approach not only empowers teams but also frees up the legal department to focus on more complex and high-value tasks.
Reach out to us at AMST Legal at rreggers@amstlegal.com or call on +31 6 5060 8964 for tips to improve your legal processes or negotiate your contracts.
How to Finish the Quarter Strong in Contract Negotiations – 6 Tips
Introduction
Is there a way to prepare for contract negotiation peaks, like the end of the quarter? Especially before the end of Q2 (Summer holidays and Q4 (Christmas holidays) commercial and legal teams see a spike in contracts that need to be signed. Also see this Harvard Business article on the end of quarter sales rush and how to improve your sales processes.
As a lawyer and in-house legal counsel since 2004, I’ve witnessed firsthand the challenges faced as quarter-end approaches. Negotiation deadlines, approvals bottleneck and orderly workflows turn into chaos and team members are stressed. What if you could approach this challenging period with strategic foresight and unmatched efficiency? Let’s explore how proactive planning can transform your end-of-quarter chaos into a symphony of streamlined processes in the Article ‘How to Finish the Quarter Strong in Contract Negotiations – 6 Tips’.
Harnessing Proactive Steps to Master the Quarter-End Crunch
The key to conquering the quarter-end isn’t reactive measures but proactive planning. With Q2 upon us, now is the perfect time to optimize your legal department’s operations and prevent the usual end-of-quarter negotiation bottlenecks.
Setting the Stage for Efficiency
While Q2 is often underestimated in terms of urgency, it’s an ideal period for reflection and goal setting. Take this time to evaluate your legal department’s past achievements and outline ambitious targets for the weeks ahead. Actions taken now will not only streamline current processes but will also pave the way for a smoother Q3 and beyond.
Preparation in the previous months is instrumental in achieving this efficiency. Working on templates and improving meeting structures between legal and all relevant teams sets a solid foundation for success.
Example: One of my clients, a mid-sized tech company, struggled with the chaos of quarter-end contract negotiations. By introducing standardized templates for recurring agreements and setting up regular bi-weekly meetings between the legal team and sales departments, they managed to streamline their processes significantly. Within two quarters, the time spent on each contract was reduced by 30%, and the number of last-minute urgent requests dropped dramatically.
Here are some actionable tips to set your team up for success:
Templates Only
Avoid new custom-made contracts. Use standardized templates to save time and reduce errors.
Focus Only on Q2 Deals
Prioritize deals closing this quarter. Concentrate your efforts on what can be completed by the end of Q2 to avoid last-minute rushes.
Write Down Lessons Learned
Document improvements for future reference. Reflect on past challenges and successes to refine your processes continuously.
The Power of Proactive Communication
With only a few weeks left in Q2, initiating a targeted communication strategy is crucial. Here’s a recommended approach:
Proactive Communication
Initiate clear and targeted communication early, also with outside counsel and customers. Open lines of communication ensure everyone is on the same page and can address potential issues promptly.
Set Clear Expectations
Define focus areas and require management approval for exceptions. Clearly articulate priorities to your team and stakeholders to ensure alignment and minimize distractions.
Example
At a large financial services firm I worked with, the legal team started sending out a “Quarter-End Preparation Bulletin” four weeks before the end of each quarter. This bulletin included a clear outline of priorities, deadlines, and key contacts for any urgent matters. By setting these expectations early, the team saw a 50% reduction in last-minute contract sign-offs and a smoother approval process.
Recommended Approach:
- Targeted Communication: Start with drafting a clear, concise email to your Sales, Partner, and Procurement teams.
- Clear Expectations: Outline that your focus for the upcoming two weeks will revolve around ongoing contracts, genuinely urgent matters, and documents needing signatures by quarter-end.
- Management Approval: Make it known that any deviations from these priorities will require direct approval from senior management.
Building Trust Through Consistency
Implementing this proactive communication strategy may initially meet some resistance. However, consistency will foster trust and acceptance over time, leading to earlier and more efficient interactions with Sales, Procurement, and Partnership teams.
Consistency Builds Trust
Regular, predictable processes lead to better outcomes. Establishing a routine will help your team and stakeholders know what to expect and plan accordingly.
Consistency is key. When your team and stakeholders know what to expect, it builds trust and reliability. This consistency ensures that everyone is prepared and can plan their work around these predictable processes.
Proven Success and Long-Term Benefits
Adopting this proactive stance can yield significant improvements within just a few quarters. By optimizing the use of your team’s resources and ensuring focus on critical, time-sensitive tasks, you can achieve better results and reduce stress.
Example
A medical devices company we advised implemented these strategies and saw notable improvements within 2 to 3 quarters. The legal team’s productivity increased by 40%, and they reported a significant reduction in stress levels and overtime hours during quarter-end.
Next Steps for Implementation
Before you send out that crucial email, ensure your team is aligned during your regular meetings and gain the necessary buy-in from key stakeholders to support this new strategy. Make sure everyone understands the benefits and is on board with the changes.
Conclusion
By embracing proactive strategies before the peak of Q2, you can effectively reduce negotiation hurdles and enhance your legal team’s productivity throughout the year. This approach, honed through my extensive experience in various high-level legal roles, can transform your quarter-end processes into efficient, well-oiled operations