It has become an essential tool for keeping track of multiple activities with cost implications and can be especially helpful for automating administration, ensuring compliance, monitoring risk, running reports and triggering alerts.
Contract management software is produced by many companies, working on a range of scales and offering varying degrees of customizability.
[2] Other functions include managing a new contract request, capturing related data, following a document through a review and approval process, and collecting digital signatures.
[6] With the adoption of the European Union's General Data Protection Regulation in 2016, companies have needed to take additional steps in regards to contract management.
[citation needed] Very large enterprises, such as capital expenditure (capex) projects, involve multiple parties and high risk and uncertainty.
The terms of these capex contracts necessarily involve assumptions at the start of the process and are likely to change over the lifetime of the project lifecycle.