What is a Standardized Contract?

Every business agenda requires constant agreement creation. Contracts underpin nearly every business relationship, whether hiring employees, engaging vendors, or leasing office space. 

But imagine if a company had to negotiate terms from scratch each time it wanted to finalize a deal. Not only would this be time-consuming, but it would also open up opportunities for inconsistencies and legal risks. This is where standardized contracts come into play.

What is a Standardized Contract?

A standardized contract, or standard form contract, is a pre-prepared agreement in which most of the terms are set in advance, with little or no ability for one party to negotiate.

These contracts are beneficial for situations involving bulk agreements, where the same terms can be applied across numerous transactions without requiring individual negotiation. 

For instance, consider a large company that sells software to various clients. Instead of negotiating a new business contract for each client, the company uses a standardized contract that outlines the same terms and conditions for all sales. This ensures efficiency and consistency across all transactions.

Why Should You Standardize Contracts?

Standardizing contracts offers multiple benefits that help businesses streamline their operations and focus on growth. Here are some key reasons why standardizing contracts is advantageous:

1. Faster Business Growth: Standardized contracts allow businesses to scale operations without being bogged down by the negotiation process. With preset terms, agreements can be executed swiftly, enabling companies to onboard clients, vendors, and employees faster.
   
   
2. Time and Resource Efficiency: Creating new contracts for every transaction is time-consuming and resource-intensive. Standardized contracts reduce the repetitive manual work, saving significant time and resources. This efficiency translates to cost savings and allows legal teams to focus on more complex contracts that require custom negotiation.
   
   
3. Consistency and Reduced Risk: Using a standardized contract template ensures that all agreements adhere to the same terms, reducing the risk of errors and omissions. This consistency is crucial in minimizing legal risks and ensuring compliance with relevant laws and regulations.
   
   
4. Simplified Contract Management: Standardized contracts simplify the entire contract lifecycle—from creation to execution and storage. This makes managing and tracking agreements easier, ensuring all parties are on the same page and meeting deadlines and obligations.
   
   

Given these benefits, it’s common for companies to constantly seek efficient ways to create contracts at scale.

Benefits that Make Standardized Contracts so Powerful

Standardized contracts bring a myriad of advantages that can significantly enhance business operations. Here are some of the most compelling benefits:

1. Bulk Contract Distribution: Deploy standardized contracts across multiple transactions seamlessly.
2. Reduced Time in Negotiations: Spend less time negotiating terms and more time on strategic activities.
3. Lowered Legal Costs: Minimize the need for extensive legal reviews and consultations.
4. Enhanced Consistency: Ensure uniformity across all agreements, reducing the likelihood of discrepancies.
5. Streamlined Contract Workflow: Improve the efficiency of the contract process from drafting to signing and storing.

How Do You Standardize Contracts?

Standardizing contracts involves creating templates that can be used repeatedly with minimal adjustments. Contract management software is the most efficient and cost-effective way to standardize contracts. These platforms come equipped with ready-made templates that can be customized to suit specific needs. 

Here’s how you can standardize your contracts:

1. Choose a Reliable Contract Management Software: Look for software that offers a library of contract templates and customization options. The software should also support the entire contract process, from drafting to execution and storage.
   
   
2. Create or Customize Templates: Use the provided templates by the contract management software or create your own. Ensure the templates cover all necessary terms and conditions and can be easily adjusted for different transactions.
   
   
3. Implement Standard Workflows: Set up standard workflows within the software to handle contract approvals, revisions, and signatures. This helps maintain consistency and ensures all contracts go through the same process.
   
   
4. Train Your Team: Educate stakeholders and legal teams on how to use the standardized contracts and the software. This ensures everyone is on the same page and can effectively manage contracts.

By leveraging contract management software like Portant, businesses like yours can efficiently standardize their contracts, reducing costs and improving operational efficiency.

To get an idea of how you can create and automate your standardized contracts, watch the video below:

Examples of Standardized Contracts

Standardized contracts come in various forms, each tailored to specific business needs. Here are some common examples of standardized contracts:

Employment Contracts

Employment contracts outline the terms of employment between an employer and an employee. These contracts typically include job responsibilities, salary, benefits, and termination conditions. Different types of employment contracts exist, but standardized employment contracts ensure that all employees are subject to the same terms, promoting fairness and consistency within the organization.

If you decide to use a prebuilt standardized employment contract template, Portant already has one created that you can use right away.

Non-Disclosure Agreements (NDAs)

NDAs protect confidential information shared between parties, including trade secrets, proprietary information, and other sensitive data. Standardizing NDAs helps businesses establish confidentiality terms with partners, employees, and vendors without lengthy negotiations.

If you need a standardized non-disclosure agreement, Portant’s NDA agreement template sets you on the right foot. 

Rental Property Agreements

Rental property agreements are standardized contracts between landlords and tenants. They specify the rental terms, including the rent amount, lease duration, and maintenance responsibilities. Standardized rental property agreements ensure that all tenants are subject to the same terms, simplifying property management.

Vendor Agreements

Vendor agreements outline the terms of service between a business and its vendors. These contracts typically include payment terms, delivery schedules, and performance expectations.  Standardizing vendor agreements helps companies manage their supply chain more efficiently by ensuring consistent terms across all vendor relationships.

Standardize Your Contracts with Portant

Portant offers an automated solution for businesses looking to standardize their contracts. With a robust library of contract templates, Portant provides standardized contracts that are easily customizable to fit various business needs. Whether you require employment contracts, NDAs, or vendor agreements, Portant’s templates cover many use cases.

In addition to providing templates, Portant’s contract management software streamlines the entire contract process. From drafting and customization to sending, reviewing, and eSign contracts, Portant ensures your contract workflow is efficient and hassle-free. 

Clients can review the terms, sign the agreement electronically, and return it for processing—all within the same platform.

By standardizing contracts with Portant, businesses can reduce the time and resources spent on creating agreements, ensure consistency and compliance, and drive faster business growth. 

With Portant, you can focus on what matters most: growing your business and nurturing valuable relationships.