The first part of the series covered, what is legacy contract migration and why do I need to do it? Here we will discuss the next/second question that is asked very often too, what attributes do I extract and ingest into a CLM during the legacy contract migration process into a CLM?
There is no real correct answer to this and it varies by company. Many like to know everything within ONE contract. For legacy contract migration, this mindset needs to change. The way to think of this is what are the reports that you require or are asked to produce every so often.
There are some standard attributes that most CLMs may require such as mandatory fields and some basic attributes that should be tracked (e.g. a set of attributes to know if any contract is current at any given date).
Here they are:
1. Contract type – NDA, MSA, SOW, Order Forms, etc.
2. Party name – Your entity name as you may have different entities, including some companies you may have purchased or merged into
3. Counterparty name(s) – Who is the contract with?
4. Effective date – What date was the contract effective?
5. Initial term – the term (years/months) since the Effective date
6. Initial term end date – Hence when does this contract term expire
7. Renewal term period – in months or days
8. Term type – Auto-Renew? Perpetual? Evergreen?
9. Termination for convenience?
10. Master effective date – From Amendments, to match up to Masters to create contract hierarchy
They are mostly applicable to all Contract Types. Read our latest whitepaper on “What attributes should I track from my legacy contracts while migrating them?” to understand why it is important to track the above attributes. But clients may want to track many other items (Force Majeure? Limitation of Liability? etc.). A detailed in-house discussion among groups needs to be conducted for this. Brightleaf does have a scoping spreadsheet that would facilitate this discussion.
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