Manual contract management may cost more than you think. That is because manual work often leads to inefficiencies and costly errors. Our recent customer survey revealed that automating contracts can help you reclaim 4 hours each week to focus on other more important tasks than wasting time on manual work.
What would you do with four extra hours each week?
For sales, HR, and legal professionals, time is money, and outdated processes can result in missed opportunities and compliance issues. Think about it: with just four extra hours each week, how many more deals could you close, candidates could you hire, or legal reviews could you finalize?
Understanding these hidden costs is the first step toward implementing effective solutions. Streamlining your contract workflows isn’t just about convenience, it’s about staying competitive and compliant in today’s fast-paced business landscape.
Read also: What is contract management? A complete guide in 2025
Why is manual contract management inefficient?
Relying on manual processes like word processors and spreadsheets can lead to:
- Time-consuming tasks: Manually drafting, reviewing, and approving contracts slows down business operations
- Increased error rates: Without automated checks, errors in contracts are more likely to occur
- Lack of visibility: Tracking contract status manually makes it difficult to monitor progress and deadlines
According to Procurement Tactics, inefficient contract management can lead to various challenges, such as loss of revenue and errors in agreements.
In today’s competitive market, these inefficiencies not only cost time but can also hurt client relationships and tarnish your organization’s reputation.
Which are the real-world consequences of poor contract management?
Ineffective contract management can lead to severe financial penalties. For example, in 2023, defense contractor RTX (formerly Raytheon) agreed to pay over $950 million in penalties to settle government investigations into allegations of contract fraud and bribery involving Qatar’s air force.
This case highlights how poor contract oversight can result in substantial fines and reputational damage. Even organizations without regulatory violations often lose revenue due to inefficiencies, with studies showing companies can lose as much as 9% of annual revenue from poor contract management practices.
How does manual contract management amplify risks and jeopardize compliance?
Manual contract processes increase the risk of non-compliance with regulations, leading to legal penalties. Beyond legal concerns, inconsistent or unclear contract terms can lead to disputes, which can derail key business operations and damage client trust.
Read also: Top 10 contract management software in 2025
How to replace manual contract management with technology?
To address these challenges, organizations should consider:
- Adopting contract management software: Automates workflows, reduces errors, and enhances visibility
- Creating clear contract management process: Ensures that the business follows a controlled and secure process to reduce risks of non-compliance
- Performing regular audit of the contracting process: Helps identify and rectify issues promptly
Effective contract management not only mitigates risks but also contributes to operational efficiency and cost savings. By investing in modern solutions, organizations can empower their teams, close deals faster, and create a more reliable contract process.
Most popular business agreement templates
Key takeaways
- Manual contract management leads to inefficiencies and increases the risk of costly errors
- Real-world cases demonstrate the severe financial and reputational consequences of poor contract oversight
- Implementing automated contract management solutions enhances compliance, reduces risks, and improves operational efficiency
- Small, incremental changes to your contract management process can lead to significant long-term benefits
Taking action today to modernize your contract workflows can save you from the hidden costs of inefficiencies while helping you gain a competitive edge in the market. Don’t let manual processes slow you down.
