Contract Creation Process: Streamlined with Templates and Playbooks

Templates provide a reliable structure for contracts, incorporating approved language and essential clauses that can be tailored for each transaction. Meanwhile, playbooks offer a roadmap for contract negotiations, outlining terms, fallback positions, and acceptable variations, ensuring consistency without reinventing the wheel for each contract.

Here’s how you can use these tools to streamline the entire process, making contract creation faster, clearer, and more consistent across your organization:

1. Craft Effective Contract Templates for Quick Turnaround

   Templates streamline contract creation by providing a pre-approved structure that teams can use repeatedly. Key strategies for effective templates include:

   • Define Core Terms and Clauses: Identify and standardize essential clauses, such as payment terms, liability, confidentiality, and intellectual property. This provides a solid foundation for all contracts.
   • Tailor for Transaction Types: Use more comprehensive templates for high-risk, high-value contracts, while routine agreements can have simpler, ready-to-sign formats.
   • Simplify with Standard Language: Using approved language across templates ensures consistency and limits the need for extensive legal review, enabling teams to customize only what’s unique to each deal.
     Standardized templates enable quick initial drafts, focusing your team’s energy on specific terms rather than starting from scratch each time.

2. Develop Contract Playbooks for Clear Negotiation Guidelines

   Contract playbooks provide clear instructions on handling specific terms and outline fallback positions in case of negotiation. They support consistency and efficiency by:

   • Outlining Acceptable and Non-Negotiable Terms: Detail the boundaries for negotiable clauses, specifying what terms can be adjusted and which are non-negotiable.
   • Documenting Common Scenarios and Responses: Record typical negotiation patterns, such as frequent objections or typical customer requests, so teams know when to stand firm or offer adjustments.
   • Establishing a ‘Walk Away’ Position: Specify deal-breaking terms to prevent unnecessary time spent negotiating unfavourable terms.
     Using playbooks alongside templates enables your team to negotiate with confidence, knowing they have a set of established guidelines that protect the company’s interests.

3. Re-evaluate Templates and Playbooks Regularly for Continued Relevance

   Over time, even the most well-structured templates and playbooks can become outdated. Regularly revisiting and updating them is essential for maintaining alignment with business needs:

   • Review for Industry Changes: Update templates and playbooks in response to regulatory updates or changes in market standards.
   • Eliminate Unnecessary Terms: Simplify documents by removing redundant or outdated terms that no longer add value.
   • Improve Readability: Ensure language is accessible and clear to avoid unnecessary back-and-forth, reducing confusion and speeding up approvals.
     Routine updates keep templates and playbooks relevant, reducing negotiation time and fostering consistency across all contracts.

4. Reduce Bottlenecks by Defining Team Roles

   Many contract delays stem from unclear responsibilities in the contract creation process. Streamline this by assigning roles upfront:

   • Identify Essential Reviewers: Determine who needs to be involved at each stage, ensuring legal and procurement only review high-stakes agreements.
   • Empower Non-Legal Teams: Use playbooks and templates to guide non-legal teams in drafting routine agreements, freeing up legal resources for more complex matters.
     A clear role definition minimizes bottlenecks, empowering your team to move contracts swiftly from creation to signature.