rewrite this title in other words: 10 Contract Management Practices to Streamline Legal Teams

Contract management inefficiencies remain a major cost center in 2026, with up to 40% of contract value reportedly lost due to fragmented workflows and poor visibility, according to a July 9 industry analysis. As legal teams face increasing contract volumes—77% of organizations noted growth in December 2025—and rising regulatory complexity, adopting repeatable practices has become critical to maintaining efficiency and mitigating risk.

A new guide from Harvey.ai outlines ten actionable best practices for contract management, offering a roadmap to reduce friction and optimize processes. These practices target bottlenecks like version control, decentralized workflows, and manual obligation tracking, all of which have been cited as core challenges by legal departments this year.

Key Practices to Address Contract Sprawl

One foundational step is standardizing contract templates and building a living clause library, which reduces drafting errors and allows legal teams to reuse trusted language. By centralizing all agreements in a searchable repository, organizations gain structured visibility into key metadata such as renewal dates and governing law, a critical tool for compliance in cross-border agreements.

“Version control breaks down the moment a contract lives in email,” the report notes. A centralized repository not only accelerates negotiation but also ensures institutional knowledge is retained, even as personnel changes occur.

Clear ownership at every stage of the contract lifecycle is another highlight. Assigning specific owners for tasks like intake, negotiation, and post-signature tracking eliminates silent gaps where deals stall. This approach aligns with recent findings (July 7, 2026) that disconnected workflows are a leading source of inefficiency, particularly in organizations where legal is often bypassed in favor of speed.

AI-Powered Solutions to Unlock Capacity

AI is emerging as a critical enabler for legal teams, particularly in handling routine drafting, review, and data extraction. Domain-specific AI tools now compare third-party paper against approved standards, flag deviations, and extract key terms into structured formats for reporting. These tools address the growing challenge of scaling contract management without proportional increases in headcount.

However, the report emphasizes that AI outputs must remain under lawyer supervision. “Judgment about what a clause means and whether it fits the deal stays with the lawyer,” the guide advises. This ensures compliance and mitigates risks tied to inaccurate AI-driven decisions, particularly in highly regulated industries.

Beyond individual agreements, portfolio-level AI analysis helps surface risks across a company’s entire contract base. For example, identifying clauses tied to upcoming regulatory changes or pinpointing obligations due next quarter can transform a static archive into a proactive resource. This capability is increasingly vital as 43% of organizations name regulatory complexity a top challenge.

Measuring Success Through KPIs

Tracking performance metrics is another cornerstone of effective contract management. Suggested KPIs include cycle time (from intake to signature), self-serve rates for low-risk agreements, and obligations-met rates post-signature. These metrics not only help teams identify bottlenecks but also make the case for investment in better tools or processes when needed.

For example, if routine contracts take 12 days to close today, a goal of reducing cycle time to 5 days provides a clear target for improvement. Industry benchmarks and historical data serve as useful reference points for setting these goals.

2026: A Turning Point for Legal Teams

As legal departments face mounting contract volumes and intensifying compliance demands, adopting these best practices offers a path to reclaiming lost value. With AI tools like Harvey.ai now capable of automating routine tasks while keeping lawyers in control of critical decisions, the potential for efficiency gains has never been higher. However, success hinges on careful implementation, cross-functional collaboration, and a commitment to measurable outcomes.

For legal teams grappling with where to start, the guide advises focusing on the practice that would remove the most friction this quarter. Whether it’s standardizing templates, centralizing agreements, or triaging incoming requests by risk, incremental improvements can pave the way for broader transformation.

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