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CONTRACT MANAGEMENT SERVICES - EXTRACTION, REVIEW & ANALYSIS

Legal Outsourcing 2.0 uses AI-enabled solutions to address contract extraction and contract analysis projects.

Contract Extraction

Efficiently locating information in a company’s written records and contracts is an essential management activity. Correctly populating information into contract management software programs is one of many uses for such information. Without extracting the unstructured data and populating the fields in the programs, key provisions like automatic renewal or termination events can easily be missed. Traditionally, a service provider performs the task of reviewing a 20-page writing for 20 data fields by creating an excel spreadsheet with the title of the fields to be populated on top, typing in the name and/or ID of the contract, reading the 20-page contract numerous times, and typing in the appropriate information into each column as they find the information in the contract. Performing the task in this manner takes about 20 minutes per contract to extract and record the required information. The costs associated with performing the task in such a way results in charges on a per piece basis of about $10-$12 per contract, and generates approximately $30 per hour to the service provider. If one needs to process 2,000 contracts, the charge will be about $20,000 to $25,000. Many companies decline to make that investment and consequently do not obtain full utilization of their contract life-cycle management (CLM) software.

Legal Outsourcing 2.0 approaches the task differently.  This is the process we use:

  • We spend significant time breaking down in detail what information you want captured and how you want the information returned to you;
  • You send us the contracts or data by FTP or by uploading them into our cloud solution directly;
  • The documents are OCRed and algorithms are applied to them;
  • Our lawyer/reviewers take a final call on the algorithm-suggested responses for the fields you want populated.

Contract Analysis

American businesses routinely exchange relatively standardized contracts. A company seeking funds requires that the lender reviewing the request sign a non-disclosure agreement. Someone needs to review the NDA and determine if signing it and returning it is consistent with company best practices. The traditional legal best practices would be to run each legal document by the legal department. As a practical matter, doing so would delay things and the company would grind to a halt. The often-employed, real world, solution is for a non-lawyer to eyeball it, make suggestions and turn it around without any legal analysis, hoping nothing is missed.

Delay is not an appropriate business response.

Hope is not a sound legal strategy.

Legal Outsourcing 2.0 uses legal AI to solve the problem created by the need to review routine contracts written on another party’s paper in a timely manner, competently and inexpensively. Our US licensed lawyer, together with our client’s lawyer, creates a playbook of best practices and how to respond to various issues in standardized agreements. When the contract is received, the company uploads the contract which is OCRed.  Algorithms are applied to identify the thorny issues; best practices are applied by the reviewing attorney using the playbook and a redlined version of the contract is returned to the US company.

The solution is both a timely and sound legal strategy.

Legal Outsourcing 2.0 approaches problems differently. We approach problems seeking to maximize value to our clients by using AI-enabled solutions, not maximize revenue to Legal Outsourcing 2.0. Our clients seem to like our approach.

Frequently Asked Questions

What type of contract work does LO2 do?

Our teams work to make contracts more understandable. Our clients give us their contracts along with what terms or portions of the contracts they are most interested in. Our work is then to comb through the contracts and pull all the most relevant clauses and details pertaining to that request. This then allows our clients to organize their contracts in a way that is most beneficial to them. Once we are done with our work, our clients will be able to know such things as when their contracts are up for renewal, how much each contract is worth and any other obligations they may have.

In some cases, our clients have used our work to target specific clauses they may want to execute. For example, one could determine whether there are any clauses in their contracts which were affected by the Covid-19 pandemic. In short, we are an investigative team and an organizational team. We take the enormous mountain of opaque contracts and make them discernable. This empowers our clients to have an easy understanding of their legal obligations to their partners.

How long has LO2 been doing this work?

Starting in 2018 we began working with our first and primary contracts client. We built our team starting with about 10 people back then. Over the years we have grown our team from some of the best contracts and legal minds we could find. Our team comes from all types of legal groups. Mostly, they are lawyers who have worked extensively in the corporate contract’s world. They understand the complexities and nuances of contracts. They are people who have a strong passion for contracts and can understand even the most complex of agreements. Experience and training have been our focus from the very beginning, and we continue to pass on that institutional knowledge. The depth and breadth of contract types and companies we have worked for over the years means we have seen about every contract type there is and work to make sure that each team member can understand whatever comes their way.

How is LO2s contract work different from other legal service companies?

The amount of time we have been working on contract organization and extraction as well as the bench we set for our team’s level of experience sets us apart. Our team has been constantly busy in this type of work from the beginning and our emphasis on improving and building institutional knowledge means we stand heads and shoulders above our competition. We understand that experience also means efficiency as we set pacing goals each day for the team and strive to meet those. We also have a deep QC process which means nothing gets through the cracks. At the end of a project you will have your information in a timely manner, with a high level of accuracy and with the information you are searching for.

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