Non Disclosure Agreement’s creation is probably one of these frequent tasks that most legal departments are struggling with.
Some of the largest corporations in the world are reporting that they are engaging in up to 1000 of them per year, spending an enormous amount of time (which in turn is money) in trying to get these NDA’s in place with their potential customers or suppliers. All of this is happening before, or even without knowing if they will at all, be doing business together one day.
From what we see, in general the vast majority these NDA’s are very similar and cover most of the times the same usual concepts. (See our check-list for 12 important points to review before executing your NDA)
Check-List: 12 points to not miss when drafting your NDA’s
• Identification of the parties
• Is the NDA mutual, or unilateral?
• What is the “purpose” of your NDA
• How should non-confidential information be handled
• How should confidential information be identified
• Confidentiality obligations and what can be done with confidential information
• What standard of care should be used in regards to the confidential information
• Required Disclosure and/or Permitted disclosure
• Remedies in case of breach
• Notices
• The term of the NDA
• Governing Law and Jurisdiction
Where does the time go to?
As IACCM recently reported in one of their studies [1] (surveying 700 companies in Europe and in the US), if 25% of the time is spent on creation, and 30% in its negotiations, in turn the signature/approval phase of contractual documents takes on average 45% of the total time.
What’s more? The study also highlights that these numbers are on the rise with the pressure of heightened regulations, etc.
Automation is the future
With an average cost of 100€/hour[2] for staff involved in contract reviews, it is obvious that automation and the usage of technology can play a crucial role in reducing the costs and eliminate the risk of manual drafting from these low value NDA’s.
Our Solution
At U-Nego we are conscious of the situation and know very well the problem. As part of our pre-signature Contract Life Cycle management Services, we have developed a simple, but very effective method for automation of NDA’s creation. By empowering end-user to self-select within controlled parameters the various clauses, we reduce to less than 5 minutes the time it normally takes to write an NDA, and eliminate the risk associated with legal drafting and error-prone production of key documents.
The review and signature processes are then automated by AI and smart workflows, reducing significantly the time it takes from initiation until the signature of your NDA’s.
If you are interested by this innovative solution, please call us for a demo, and find out how you can also save up to 70% of time in your NDA creation process.
[1] Source: The Cost of a Contract – IACCM research report, published 18/10/2018. The analysis is based on data that comes primarily from corporations based in North America and Europe, with annual revenues of $1billion or more.
[2] Source: Cost data was extracted from the 2017 IACCM salary survey
Good practices in contract and vendor management are the north star at Unego. Every day we advise our customers on how to avoid the typical pitfalls encountered in complex service contracts. We preach about good contract, performance, financial, risk and vendor relationship management and have developed processes and methods that have proven to be efficient in maximizing your contractual expectations while minimize the risks associated with your key suppliers. We do this using a clever combination of technology, automation, artificial intelligence coupled with pragmatic human expertise.
If you would like to discuss how we can help you or your company, please don’t hesitate to contact us: www.u-nego.com/contacts
