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Most teams don’t realize how much time they lose to contracts until things start piling up. One takes too long to approve. Another gets stuck in legal. A third is missing a clause no one noticed until it was too late. Multiply that across dozens or hundreds of deals, and the cost is obvious.
The problem usually isn’t the people. It’s the process.
The contracting process is what turns informal agreements into actual results. It’s the structure that keeps teams aligned, timelines clear, and risks under control. But only if it’s built to handle real-world complexity.
In this guide, we’ll break down what the contracting process looks like when it works, where it tends to fall apart, and how automation can fix the weak spots without adding more work.
If your current system feels fragile, slow, or hard to manage, you’re not imagining it. Let’s fix that.
The contracting process is the path every agreement takes from idea to signature and beyond. It covers everything from identifying a business need to creating, reviewing, approving, signing, and managing the final document.
In many ways, it’s the foundation of the entire contract lifecycle that shapes how deals move from initial talks to lasting partnerships.
With that in mind, a well-organized contract management workflow helps teams turn those moving parts into something clear and consistent. It keeps everyone on the same page, reduces back-and-forth edits, and ensures compliance at every stage.
Without that structure, contracts can easily get stuck in email chains, miss deadlines, or include terms that were never reviewed properly.
Every business has its own version of the contracting process, but the common goal is to create fair and enforceable agreements efficiently.
In recent years, many companies have turned to AI-powered tools to handle routine steps like drafting, redlining, and approval routing. That way, teams can focus on contract negotiation, strategy, and keeping the entire contract lifecycle under control from start to finish.
Aline is one such tool that can keep your contracting process fast yet high-standard. Try it for free today!
As mentioned, a clear contracting process helps teams stay on track and keep business moving. So when the process works, deals close faster, fewer things slip through the cracks, and everyone knows what to do.
You can also expect the following strategic advantages:
When you're handling many contracts, it's easy to lose track of key terms or deadlines. A solid process keeps the contract details organized, so teams know who’s handling what and when.
In other words, it brings structure to the chaos and makes collaboration smoother, whether you’re in legal, sales, or procurement.
Missing a clause or using outdated language can cause real issues later. With a clear process in place, contracts stay aligned with current rules and internal policies. That means fewer mistakes, fewer red flags, and better audit trails when you need them.
Keep in mind that around 15% of large companies lose money due to contract mismanagement (WCC), and it's often because those checks and balances aren’t in place.
Going off the previous section, we know that contract management mistakes often cost time and money. But with defined steps and reviews in place, it’s easier to catch problems before contracts go out the door.
For example, you can flag missing approvals, spot risky terms, and track key milestones like payment dates or renewal deadlines.
Having past contracts and terms on hand gives you an edge. When you're negotiating contracts, you can reference similar deals and avoid agreeing to something you’ll regret.
A structured contract management process makes all that information easier to find and use.
Manual processes break as your business grows. On the flip side, a well-built system for contract administration helps you keep quality and consistency even as contract volume increases.
And with the right contract management software, you can automate repetitive steps, stay organized, and stay fast without cutting corners.
The contracting process may look different from one company to another, depending on the size of the team, the number of contracts, or the tools in use. But most organizations still follow a similar path.
These essential stages help bring order to the work and keep contracts moving:
Every contract begins with a clear purpose. It could be bringing in a supplier, hiring a contractor, or entering into a customer agreement. At this point, the team defines:
This first step frames the scope of the agreement. It also sets expectations early, which helps avoid confusion later in the process.
Once the need is defined, the contract moves into the contract creation process. This is where teams outline the key terms in writing.
Most use approved templates or clause libraries to get started. Others now use AI contract drafting software to help generate draft language based on form inputs.
The goal at this stage is to create a clear, accurate version that reflects the intended deal. It often includes:
Getting these details right early helps speed up the next steps.
Before the contract goes to the other party, it typically passes through several internal reviewers. Legal may check for standard clause usage. Finance might verify numbers. Procurement might compare it to similar vendor agreements.
A clear contract approval workflow avoids confusion and keeps things progressing. When approval chains are tracked automatically, teams waste less time following up. Everyone knows who signs off, and in what order.
Once internal teams give the green light, the contract is shared with the counterparty. This step often takes the most time, especially when the agreement is complex.
The contract negotiation phase can include:
Each round of revisions should be tracked so both sides understand what changed and why. Tools that support version tracking and side-by-side comparisons help keep things clear. Without that, it’s easy to miss something or send out the wrong version.
After both parties agree on the final version, the contract goes through final approval. This may include a department lead, executive, or general counsel.
Once approved, signatures are collected. Many companies now use e-signature software to make this faster and easier, especially for contracts that need more than two signatures.
Once signed, a contract still needs attention. It should be stored in a centralized repository where teams can access it later. Important dates like renewals, payment deadlines, or deliverable milestones need to be tracked and shared.
This step often includes:
Managing contracts after they’re signed is just as important as creating them. If no one follows the terms or knows where the agreement lives, the contract loses its value.
Even with a clear process, contracting isn’t always smooth. Agreements between two or more parties often involve back-and-forth, version changes, and input from multiple departments.
Without the right structure and tools, delays and errors can start to add up. Here are some of the most common issues teams face:
Fixing these challenges starts with replacing manual steps and scattered systems with tools that give everyone a clear view of what’s happening and what’s next. This brings us to our next section.
Once the basics are in place, automation makes the process easier to follow and much less fragile. Let's take a look at how it works:
Contract creation slows down when teams rely on outdated templates or old email threads. Too often, someone pulls a version from last year, tweaks a few lines, and hopes nothing important was missed. That’s not just slow; it’s risky.
With contract automation, contract creation stops being a non-standardized process. The system pulls relevant information right from your intake form or CRM, and you start with a solid draft, not a blank page.
Templates aren’t static, either. They adjust based on contract type, department, or deal size. That means teams can generate accurate contracts quickly without needing legal to build each one from scratch.
Plus, legal can set the rules once in a standard agreement, and everyone else works within that framework. Any team can generate contracts without waiting days for legal to catch up. That kind of speed saves hours, but more importantly, it keeps the contract accurate from the start.
Getting approvals shouldn’t mean sending a contract into a black hole. But that’s exactly what happens when there’s no clear system. Legal is waiting on finance. Finance didn’t see the email. Sales is wondering what’s taking so long. Sound familiar?
Automation introduces a framework to the contract management lifecycle. Once a contract is ready, it’s routed automatically based on predefined logic.
Maybe legal only needs to review deals over a certain value. Or maybe finance signs off on anything involving vendors. You can set the rules once and let the system handle the rest.
A setup like this helps the sales team the most. They’re usually the ones trying to get a signature before quarter-end, only to hit internal delays.
With automated routing and built-in notifications, sales doesn’t have to guess who’s next. They can check the status, see who’s holding things up, and keep deals moving without the back-and-forth.
Knowing exactly where a contract stands without having to ask is a big shift for most teams. When you automate your contract process, each agreement moves through defined stages that are easy to track.
This visibility isn’t just for legal. Sales can check timelines. Finance can confirm totals. Managers can see delays before they snowball. It’s a way to keep all the details in front of the right people, without needing a manual update.
More importantly, it supports effective communication. Teams stop guessing, stop following up through email, and start working with a shared understanding of what’s actually happening.
Automation doesn’t just speed things up. It also helps people work together without stepping on each other. Good contract collaboration means everyone sees what they need, adds input at the right time, and keeps the process moving without confusion.
Here’s what that looks like:
This approach adds clarity to the process and improves contracting efficiency without adding more steps. It also supports a contract management strategy that scales with your business.
Contract work doesn’t end after the signature. Teams still need access to the final version, and often, so do others down the line. Thankfully, a centralized system makes that simple.
With a contract repository, all agreements are stored in one place, organized by type, department, or counterparty.
You don’t have to dig through inboxes or shared drives to find what you need. Every version, comment, and update stays connected to the contract. So, you get faster answers and fewer mistakes when referencing terms or obligations.
This also improves how you work with contract files over time. Reporting becomes easier, audits take less effort, and patterns in contract data are easier to spot.
Automated alerts are built-in notifications that keep teams informed throughout the contract lifecycle. They’re designed to flag key dates, upcoming tasks, and contract milestones without anyone needing to set manual reminders.
This is particularly useful when tracking renewal dates, payment deadlines, or review periods. Missing just one of these can lead to unwanted renewals, missed revenue, or contract breaches.
With a smart contract management platform, however, alerts go to the right people at the right time.
Examples of how they help:
These alerts reduce guesswork and keep the process moving without the usual follow-ups.
Automation helps maintain consistent compliance by building checks into the workflow itself. In turn, the automated steps make it easier for teams to follow the rules without slowing down.
For example, if a certain contract type always requires a non-disclosure clause, the system can flag when it’s missing. If contracts over a certain value need extra approvals, that’s built in too.
This supports risk assessment during contract drafting and review, helping teams catch problems before they go out the door.
Here’s how automation helps with compliance:
This level of control reduces potential risks and helps companies maintain a clear record of who reviewed what and when. That kind of consistency pays off when regulations change or legal disputes come up later.
Getting a contract signed shouldn’t take weeks, but for many teams, it still does. Long approval chains, missing context, and scattered tools drag out the process. That’s where contract lifecycle management software makes a difference.
When each step is built into the same system, teams move from draft to dotted line much faster. Contracts are created using templates, routed automatically, and tracked in real time. No one’s waiting around or guessing where things stand.
Shorter cycles also help close the best deals before competitors step in. Buyers move faster. Vendors lock in pricing. Teams hit targets without rushing last-minute approvals.
A structured system that handles the stages of contract work is the difference between chasing signatures and getting ahead of schedule.
Everything we’ve covered comes down to one thing: a process that’s too manual, too scattered, and too hard to manage at scale. You’ve seen how automation can fix that. But the real question is how to make those fixes stick across your entire team.
Aline is built to solve this. It brings structure to every stage of the contract lifecycle, from the first draft to the final signature and beyond.
Built for legal, sales, procurement, finance, and ops, Aline combines AI, workflows, and a clean interface that makes contract work feel less like a bottleneck and more like a system that just works.
With Aline, you can:
Start your trial today to see how Aline can simplify the way your team handles contracts.
The contracting process typically includes identifying the need, drafting the agreement, internal review, negotiation, final approval, signature, and post-signature management. While the structure can vary, these steps help maintain version control, clarify responsibilities, and keep contracts moving toward completion.
Contracting procedures refer to the formal steps and internal rules that guide how contracts are created, reviewed, approved, and managed. These procedures cover certain aspects like how agreements are initiated, what reviews are required, and how the original contract terms are checked for accuracy and legal alignment. They help teams maintain a clear understanding of responsibilities and expectations, allowing teams across departments to work together without confusion or delays. Following defined procedures also helps contracts stay compliant with relevant laws and company policies.
Contract processing is the workflow that moves a contract from draft to execution. It involves collecting key information, reviewing legal language, checking termination clauses, and preparing documents for signature. Processing is a major part of contract administration and helps teams stay on top of deadlines and obligations.
The typical procurement process includes identifying the need, selecting potential contractors, sending out requests for proposals, reviewing offers, negotiating terms, awarding the contract, and managing supplier performance. Each step is built to save time, support compliance, and increase efficiency, especially in long-term supplier relationships.
Contract lifecycle management (CLM) gives businesses more control over their contracts at every stage, from creation to renewal. With the right CLM software, teams can automate drafting, speed up the negotiation process, and stay ahead of key dates like contract renewal. It helps maintain version control, track performance metrics, and manage termination clauses without relying on scattered systems. This leads to fewer delays, stronger compliance, and a clearer view of the full contract pipeline.
Brent is an attorney, a full-stack JavaScript engineer and the CEO of Aline.
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