Managing contracts should be simple. But for many teams, it’s anything but. Instead of supporting the business, contracts often get stuck in endless reviews and unclear workflows that slow everything down.

And the cost? It adds up fast. Studies show that up to 40% of a contract’s value can disappear due to inefficiencies. That includes delays, missed renewal dates, and poor visibility across the organization.

So, in this guide, we'll look at the real problems behind slow, messy contract processes and give you clear ways to fix them. If contracts are creating more work than they solve, it’s time to change how they’re handled before it starts costing more than just time.

1. Too Many Manual Tasks

One of the biggest headaches in managing contracts is still having to do everything by hand. From drafting to approvals, a lot of legal departments are stuck juggling email threads, Word docs, and sticky notes.

Most of the time, it’s slow, messy, and increases the risk of missing something important, especially during contract review.

Let’s not forget contract redlining. If you're bouncing redlines back and forth over email, version control becomes a nightmare. One person edits an old draft, another forgets to accept tracked changes, and suddenly no one knows what’s final.

Here’s where things tend to slow down:

• Manually creating contracts from scratch
• Emailing for approvals or signatures
• Redlining without real-time collaboration
• Updating spreadsheets to track statuses
• Setting reminders by hand (or forgetting them altogether)

These manual steps don’t just eat up time; they also make contract management processes more prone to error. A missed edit or forgotten clause can cause major issues down the line.

That’s why more teams are switching to contract management tools. The right platform automates common tasks, keeps everything in one place, and lets people review and approve in real time.

2. Data Silos

Let’s talk about one of the most common problems in contract management: data silos. You’ve probably seen this happen. Sales stores its contracts in one tool, finance in another, and legal keeps everything separate. With no shared system, it’s tough to keep track of what’s going on.

For contract management professionals, this setup makes simple tasks frustrating. You end up chasing files, sending repeat requests, or wondering if you’re looking at the latest version. Without a single view, contract visibility suffers, and progress slows down.

When legal teams can’t easily access updates or key documents, the entire contract lifecycle gets off track. Delays build up, and it becomes harder to stay on top of renewals, obligations, or risks.

Using contract lifecycle management software solves this by putting everything in one place. Instead of switching between systems or relying on scattered updates, everyone can work from the same source. It’s a straightforward fix that makes collaboration easier and keeps contracts moving forward.

3. Slow Contract Turnaround

Waiting days—or even weeks—for a contract to move from draft to signature isn’t just annoying. It hurts contract performance, delays deals, and frustrates everyone involved.

When multiple people need to review, approve, and sign off, things slow down fast, especially if you’re still relying on email or outdated systems.

Slow turnaround times are one of the clearest signs of poor contract management. They often come from unclear roles, missing information, or tools that simply don’t support fast collaboration. Here’s what usually causes delays:

• No defined approval chain, so people aren’t sure who signs next
• Manual handoffs that lead to confusion or missed emails
• Lack of version control during contract creation, leading to back-and-forth edits
• Teams using different tools, which complicates communication
• No reminders or status updates to keep things moving

Improving speed often means fixing broken contract processes that drag things out. Clear and automated workflows, shared timelines, and real-time edits go a long way.

Adding contract management technology makes it even easier. With the right platform, you can route approvals, collaborate faster, and track every step without constant check-ins.

4. Lack of Standardization

One of the most overlooked challenges in contract management is the lack of consistency. When every team uses different formats, clauses, and processes, it’s no surprise that contracts start to look all over the place. This patchwork approach causes delays and opens the door to mistakes.

Without a standard way to draft and review, contract approval takes longer. People ask the same questions, rewrite the same sections, and second-guess what’s already been decided. Worse, contracts may slip by with missing or outdated terms, putting contract compliance at risk.

Inconsistent language and formatting also make it harder to manage risk. If two clients get two very different contracts for the same service, someone’s bound to raise concerns later.

Teams that focus on effective contract management take the time to set up standard documents and automated workflows. They don’t have to start from scratch every time. Instead, they use pre-approved language, clear formatting, and a consistent process from start to finish.

With the right setup, contracts move faster, look more professional, and reduce the back and forth that slows everyone down.

5. Limited Use of Automation

Many contract management issues result from doing too much by hand. When teams rely on emails, spreadsheets, and manual checklists, mistakes happen. Delays build up, and small tasks, like chasing approvals or sending reminders, start to pile on.

For contract professionals, this isn’t just frustrating. It wastes valuable time and keeps them stuck on repetitive work instead of focusing on bigger priorities like risk or strategy. When automation is missing, managing even a few complex contracts can start to feel overwhelming.

Instead of trying to keep up with everything manually, here’s what you can automate to take the pressure off:

• Approval workflows: Route contracts to the right people in the right order, without needing follow-up emails.
• Deadline alerts: Get automatic reminders before a contract expires, renews, or hits a key milestone.
• Smart templates: Generate agreements with pre-filled fields to save time on every draft.
• Contract tracking: Monitor the status of all their contracts in real time without checking different tools.
• Clause suggestions: Use stored language to quickly build or revise terms, even in more complex agreements.

6. Little to No Metrics Tracking

Not tracking key data is one of the quiet problems in contract management. Without it, you’re guessing how long contracts take, where delays happen, or how many are sitting unsigned. Over time, this lack of insight affects how you handle supplier contracts, renewals, and approvals.

Let’s say your team sends out a standard agreement, but it takes 18 days to get signed. Why? Is it stuck in legal? Did the supplier miss the email? Without metrics, there’s no way to know and no easy way to fix it.

Tracking helps you spot problems early. For example, if most contract templates take less than a week to approve, but one type always drags, that’s a sign that something needs to change.

Maybe it’s too long. Maybe the terms raise red flags. Either way, you won’t catch it without data.

Using contract automation tools with built-in reporting makes this easier. You can see how many contracts are active, pending, or overdue. You can track contract risks, like missing clauses or unapproved edits. You can even monitor contract storage to avoid duplicates or misplaced files.

With the right tracking, your team can stop guessing and start improving how contracts are handled, day to day and long term.

7. Disconnected Systems

Working across disconnected systems is one of the biggest barriers to a smooth contract workflow. When contract authoring, approvals, and storage all happen in different places, the whole process becomes harder to manage and much easier to mess up.

During contract negotiation, switching between tools slows things down. You might draft a contract in Word, negotiate terms by email, get approvals in Slack, and store the final copy in a shared drive. That patchwork setup leads to version confusion, missed edits, and forgotten approvals.

It also weakens contract standardization. Without one system managing the process, teams often copy old contracts or skip certain checks, leading to inconsistencies. That’s where contract leakage happens; when unapproved terms or pricing make it into the final deal.

Disconnected tools also make risk management more difficult. If legal can’t track which clauses are used or if business rules aren’t followed, you’re left exposed. There’s no easy way to flag redlines, enforce policies, or spot missing language.

Tying everything together in one system solves this. With a single platform, contract data stays accurate, edits are tracked, and everyone works from the same playbook.

Beat All Your Contract Headaches With Aline

As you can see, most contract issues come down to scattered tools, slow processes, and too much manual work. Manual reviews, messy handoffs, and endless edits don’t just waste time—they hold your business back.

Aline fixes all of that. It's an AI-powered platform built for fast-moving businesses that need more than just a place to store documents. Aline helps legal and business teams draft, negotiate, analyze, and sign contracts 5–10X faster using advanced AI.

Take a look at what Aline brings to the table:

• Full contract lifecycle automation from generation to signing
• AI-powered review, redlining, and drafting backed by GPT-4
• Smart workflows with task routing, dynamic approvals, and real-time tracking
• Built-in compliance checks to stay ahead of risks
• Drag-and-drop templates for easy contract creation
• Native e-signatures (AlineSign) with multi-party support
• Real-time collaboration with comments, roles, and live updates
• Data-rich reporting for contract insights, renewals, and performance

You can stop jumping between Word, email, and DocuSign. Aline brings everything into one place, so your team can focus on closing deals and scaling faster.

Try Aline today and take control of your contracts from start to finish.

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FAQs About Contract Management Challenges

What are five possible problems that could occur in a contract situation?

There are plenty of things that can go wrong, but here are five common issues many legal teams face:

1. Missed key dates like renewal dates or deadlines
2. Misunderstood or unclear contract terms
3. Lack of visibility across enterprise systems
4. Poor version control during drafting and negotiation
5. Failing to meet regulatory requirements

These issues can impact cost savings, delay deals, and create unnecessary risks for the entire business.

What are the four blocks of good contract management?

Effective contract management usually rests on four core pillars:

1. Visibility – Giving business users, legal, and other teams access to contracts and updates
2. Control – Managing permissions, edits, and contract terms across teams
3. Automation – Using CLM software to handle workflows, approvals, and alerts
4. Compliance – Meeting legal and regulatory requirements without missing steps

Together, these blocks help companies handle contracts without disrupting business operations.

What are the six stages of contract management?

The typical contract lifecycle includes these six stages:

1. Request – A team or stakeholder needs a contract
2. Creation – Drafting the agreement, often using standardized templates
3. Negotiation – Adjusting terms, often between departments or external parties
4. Approval – Getting sign-off from the right people
5. Execution – Signing the contract
6. Post-signature management – Tracking key dates, monitoring performance, and managing renewals

Using CLM software helps teams keep every stage on track, especially in fast-paced world commerce environments.

What are the challenges of contract management?

Some of the biggest challenges include:

• Too many manual tasks that slow down business operations
• Disconnected tools that prevent smooth communication
• Poor tracking of contracting costs and performance
• Missed key dates that affect compliance and revenue
• Lack of standard processes, which leads to inconsistent contract terms
• Low adoption by business users who find the process hard to follow

These challenges make it tough for many legal teams to scale their work or prove the value of contracts across the entire business.

How can teams handle simple contracts without falling back on traditional methods?

Many organizations still rely on filing cabinets and outdated workflows for simple contracts, but those traditional methods are time consuming and prone to non compliance. By integrating AI tools and automated notifications, teams can improve collaboration, ensure compliance, and stay ahead of regulatory changes. Tackling these challenges requires modern solutions that boost visibility and lead to improved compliance without slowing things down.