Manually redlining contracts, tracking edits, and ensuring nothing slips through the cracks often slow down your contract workflow. The longer it takes, the more it costs your business—sometimes hundreds of thousands of dollars.
An EY Law Survey reports that:
- Only 31% contracts typically follow a playbook or guidelines
- 71% of contracts aren’t monitored for deviations from standard terms
- 75% of organizations don’t have pre-approved fallback terms
But there’s a smarter way. Contract redlining software, like HyperStart CLM, automates the redlining process. It makes tracking changes and collaborating in real time easier, helping you accelerate negotiations without overlooking essential details.
In this guide, you’ll understand redlining software, how it works, and why it’s essential for any business that wants to move faster and stay ahead.
What is contract redlining software?
Contract redlining software is like having an assistant to keep track of all the back-and-forth edits during contract negotiations. Instead of getting lost in endless email chains or dealing with multiple versions of the same document, this software shows you exactly what’s been changed, who made the changes, and when.
As contracts go back and forth, each side can suggest changes, and the redlined version makes it easy for the other party to review, accept, reject, or adjust those edits. Usually marked in red, the changes stay clear and easy to follow.
How does contract redlining software work?
Traditionally, a legal team reviewing a contract in Microsoft Word would manually draft, review, save, send, and track different versions across email chains. With redlining software, every edit is automatically saved and accessible to all parties in real time, reducing time spent managing versions and preventing confusion.
Most redlining software integrates with:
- Editors like Microsoft Word or Google Docs,
- Productivity suites like Teams and Slack,
- E-signature tools like Docusign and Adobe Sign
More recently, AI Playbooks and Generative AI capabilities benchmark preferred language and keep you from reinventing the wheel. For a step-by-step breakdown of how contract redlining works, check out our guides on:
What makes redlining software different from traditional tools?
Let’s compare traditional tools to redlining software:
| Traditional Tools | Redlining Software | |
| Version control | Multiple versions across Word, PDF, and devices in multiple formats | Redline on one in-browser editor with former versions time-stamped |
| Redlines | Changes without clear explanations or unreadable redlines upon redlines | Automate fallback positions and explain why |
| Documentation | Hidden or error-prone changes and redlines | Auto-track changes by whom and when on an audit trail |
| Collaboration | Back-and-forth emails that are need human oversight and routing | Built in approval waterfalls with email and Slack integrations |
What are the benefits of using contract redlining software?
Here are 4 reasons why contract redlining software is a game-changer.
1. AI-assisted redlines
BCG notes one primary use case for GenAI. In large supply bases where negotiations happen frequently, GenAI can identify price outliers and create tender documents and smart contracts.
This can produce 50% productivity gains. Companies found that contract reviews which previously took two days could be completed in 20 minutes.
Contract redlining software can suggest redlining rules based on your current document and selected text. Auto-generate fallback positions for different scenarios, making contract reviews dynamic and productive.
2. Real-time collaboration
Outside firm lawyers value control, precision, autonomy. In-house counsel value speed, efficiency, and collaboration.
Redlining software is integrated to a single editor that everyone can access without conversions, uploads, and downloads. It streamlines versions with auto-saves and a full history of edits. No manual follow-ups across tools and devices. Everyone stays accountable and aligned.
3. Pre-approved language
You can choose from a comprehensive library of workflow templates or a clause library that are pre-configured based on your preferences. Instantly compare contracts with benchmarks. Confidently review, edit, and accept multiple changes with a strong legal position.
4. Efficiency gains
From writing to reviewing clauses, locating potential risk, and final pass reviews, redlining software can help you save precious billable time. Repetitive work like proofreading, formatting, summarizing, and reviewing of boilerplate clauses can be streamlined. Attorneys can use the free time to focus on higher-value work.
End Version Chaos Forever
Redline smarter with HyperStart AI Assist for precedent language. Stop losing critical changes in emails and scattered versions. Without leaving MS Word
Book a Demo5 key features of contract redlining software
Contract redlining software comes packed with features designed to make the contract review process smoother and more efficient. Here’s a quick breakdown of some of the most useful ones.
1. Audit trail
Every time someone makes an edit whether it’s approving a clause, revising it, or signs off on the contract—the software automatically tracks and logs all activity.
2. Version control
With built-in version control, you can see how a contract evolves over time and establish context. Ensure only the final draft is sent out the door while everyone stays on the same page.
3. AI-redlines and markups
Instead of manually marking up documents, the software does it for you so review happens faster. Legal and non-legal teams can accept or reject changes based on pre-approved language, saving time and effort.
4. Clause or workflow library
Legal teams can create a workflow or clause library to store frequently used provisions, from boilerplate clauses to specific terms like an indemnity clause or escalation clause. This library makes drafting and routing contracts faster and more consistent.
5. Central dashboard
A unified dashboard tracks all contracts from creation to completion with process metrics like turns taken, contract TAT, status, and pending approvals from respective stakeholders. This allows complete visibility into the contract lifecycle pre-execution.
Contract approval TAT ≠ contract review time. Contract review times account for about 30-40% of the contract lifecycle time. While redlining cannot be fully automated, all the rote work can be significantly optimized.
Tired of losing track of contract versions?
HyperStart CLM can track all versions of your contracts, ensuring you stay up-to-date throughout the entire contract negotiation process.
Book a DemoHow to choose the right contract redlining software
Finding the right tool is key to improving your negotiation workflow and ensuring your contracts are efficient, accurate, and compliant.
Here are key factors to help guide your decision:
1. Ability for multiple users to work on the same contract
When you’re on the hunt for redlining software, the first thing to think about is its core functionality. Sure, it’s great to have the basics like marking up contracts with comments, highlights, and strikethroughs on an editor you’re familiar with.
Look for advanced features that can really make your life easier, such as audit trail, version control and comparison. You want software that lets multiple parties dive into the contract ad hoc or sequentially. This way, you can negotiate more efficiently and cut down on those lengthy turnaround times.
2. User-friendly design for easy navigation
A user-friendly interface can work wonders for your efficiency and keep the training time to a minimum. You’ll want intuitive software, so you can navigate it without scratching your head.
And if you can customize the software to fit your specific preferences? Even better. That little extra touch can really enhance usability.
3. Integration capabilities for a seamless workflow
Besides, the editor, It’s important that your redlining software plays nicely with other tools you’re already using from contract request to closure. This could be email, Slack, calendar, and document management systems. Seamless integration can help you streamline your workflow, cutting down on those tedious manual tasks and boosting your overall efficiency.
4. Software that adapt with your evolving needs
As your business expands, so does the volume of contracts you’re handling. So, think about scalability. You want software that can keep up with your growth without skipping a beat. Look for options that offer flexible pricing plans and features that can adapt to your evolving needs. It’s all about future-proofing your choice
5. Reliability and customer satisfaction
Finally, don’t forget to check out customer reviews and testimonials. Pay attention to feedback regarding reliability, performance, and customer support. After all, you want to partner with a software provider that’s got your back when you need help.
Checklist for Evaluating Redlining Software:
Make the Switch Confidently
HyperStart CLM checks all the boxes—quick setup, real-time collaboration, reliable support, intuitive UX, and seamless integrations. See for yourself.
Book a DemoTransform Your Contract Management with HyperStart
HyperStart is designed to streamline the contract review process to close deals faster. It offers robust negotiation and collaboration tools on an intuitive interface that make it easy to adopt. It’s ideal for small—to medium-sized businesses looking for a contract management solution without a steep learning curve.
Contract redlining features in HyperStart CLM
- Centralized platform: A single location for contract redlining, review, and version tracking ensures all stakeholders work on the same document.
- Real-time collaboration: Supports the contract editing workflow, from inline comments to mentions, for efficient team collaboration on contract edits and feedback.
- AI-powered review: AI-driven contract review automates detection of deviations, reduces manual reviews,
- Auto-track versions: Automatically tracks all redlined versions from external parties within the platform, avoiding confusion over the latest version.
With HyperStart, you can cut contract review times, eliminate manual errors, and ensure smooth collaboration across teams. See what our customers have to say.
An MSA from a big client sometimes goes to 40 pages. The usual time for the legal counsel to manually review it and revert would be between 4 and 6 hours. Using HyperStart, we can get a first-cut review with highlights of around 20 critical items in less than one minute.
Om Prakash Pandey
Legal Counsel Head, Leadsquared
HyperStart is integrated with Outlook. I can send emails to clients and track emails from counterparties directly on the tool. I don’t have to switch between platforms.
Mayuri Jaltare
Company Secretary, Qapita
Don’t just take their word for it—see it in action. Book a demo today and discover how easy contract redlining can be with Hyperstart CLM at your side.
![A Guide to Contract Redlining [Challenges + Solutions + Top Software Tools]](https://www.hyperstart.com/wp-content/uploads/2024/07/Blog-82-purple-scaled.webp)
