How Can Document Templates in SharePoint Help Lawyers?

Can a Smart Clause Library in SharePoint Reduce Drafting Errors?

Drafting contracts can be a chaotic process for lawyers. They may inadvertently include outdated clauses or incorrect references. These errors are not due to any lack of care or diligence but are simply an inherent aspect of the traditional drafting process.

Fortunately for most legal departments, the solution to this problem is already at hand. Organizations using Microsoft 365 have already placed their contracts in SharePoint libraries. However, most legal teams are still using this library as a digital version of a paper filing system.

A better approach is to create a library of searchable clauses instead of relying solely on contract templates.  To understand how structured templates support this process, explore how document templates in SharePoint for legal drafting help lawyers start with consistent, approved contract language.

Lawyers can build contracts using approved clauses contained in a single library.

Key Takeaways

• One of the biggest time drains for legal teams is often spent digging through prior contracts to copy language from previous contracts. A well-organized clause library can help eliminate this problem and create a more efficient contract drafting process.
• A smart clause library is a library of individual clauses rather than entire contracts, which can help make it easier for contract lawyers to find the correct language to use in contracts.
• Metadata such as clause types, jurisdiction, and risk can help contract lawyers quickly find the necessary language without having to sift through a series of folders.
• Features such as version control, permissions, and approvals can help make a clause library more accurate and help eliminate unauthorized changes to contract language.

Why Does the Traditional Folder Structure Create Drafting Inefficiency?

Most contract repositories use a folder structure. At first glance, this structure is logical and easy to understand. However, as time progresses, the folder structure becomes more and more convoluted as more categories are added.

Ultimately, the lawyer has to go through several folders just to find the appropriate document. This creates an unorganized system when several lawyers are tasked with creating folders. Two contracts with similar uses may be stored in completely different folders.

Another problem with this structure is the technical issues that arise with SharePoint. Too deep of a folder structure may cause synchronization issues with the desktop. Eventually, the file path may exceed the Windows limit of two hundred and sixty characters.

The problem with the current structure is the way lawyers are forced to search for information. Lawyers do not remember the exact location of the information. Instead, they remember the type of clause they are trying to find.

This is where metadata becomes more powerful than folders. With metadata, lawyers use tags for each document or clause. For instance, the tags for a clause may include jurisdiction, clause type, risk level, and type of contract.

With metadata, lawyers search for the meaning of the data rather than the physical location. They filter the library and find the relevant clauses for the agreement. This minimizes the time lawyers spend navigating the folders.

Most importantly, the smart clause library stores individual clauses rather than entire agreements. With the smart clause library, lawyers search for individual clauses.

How Do You Design the Library for Lawyers Who Prefer Familiar Tools?

The success of technology implementation depends on the level of comfort users feel with the technology. Many legal assistants are comfortable working with file explorers. A completely new interface may cause resistance.

SharePoint solves this problem with a compromise solution called Document Sets. Document Sets offer a folder-like experience but still maintain structured metadata behind the scenes. The user gets a familiar container that allows them to group related clauses or documents together.

However, everything within this container still inherits consistent metadata. This allows administrators to still maintain structured organization without requiring users to change familiar workflows. It’s a similar experience to working with folders but still leverages metadata.

A second strategy for adoption is to synchronize a SharePoint library with a user’s desktop environment. With Microsoft OneDrive, the clause library will appear as a blue folder on a user’s computer.

This allows legal assistants to open and save clauses using the same user interface as other files. They will not need to access the SharePoint website to use this library. This integration often eliminates the psychological hurdle that users must overcome using this system regularly.

Building a library with user habits in mind greatly increases adoption within legal departments.

How Can Contract Admins Create a Clause Library Without IT Help?

Most contract administrators believe that designing a SharePoint architecture requires IT expertise. However, this is not true in most cases. In most cases, most of the necessary features are intended for business users.

One option is to design a location that specifically houses legal standards. A Communication Site in SharePoint is a great option for this type of location. A Communication Site is a structured location that allows users to house approved clauses, templates, and legal standards in one place.

Hiding this type of content within private team workspaces may also be problematic from a visibility standpoint. It may be challenging for a new employee to find the correct library within a company that uses multiple team workspaces for different teams’ clause libraries.

Permissions are also important in maintaining the integrity of a clause library. Ideally, all users in a company should have permission to read and search clause libraries. However, editing permissions should be limited to contract administrators.

Content types provide another useful level of organization. A content type is similar to a template, defining what information is associated with a given clause. For example, a clause content type might contain jurisdiction, type of contract, and a review date.

This helps contract administrators ensure that all clauses contain the same type of information.

How Do You Prevent the Clause Library from Becoming Outdated?

A clause library is only useful if it is current. Without regular maintenance, a library of clauses will inevitably become outdated. Fortunately, SharePoint includes a variety of tools that can make maintaining a library of clauses easy.

For example, version history can track any changes made to a given clause. This allows contract administrators to see when a clause was changed and by whom.

If a partner wants a previous version of a given clause, it can be restored immediately.

Approval workflows can also be useful for maintaining quality control within the library. For example, a new clause may be subject to review by the general counsel before it is visible to the organization. This can be automated with tools such as Microsoft Power Automate.

Another interesting aspect of the audit trail is the level of detail it can provide about what clauses are being accessed or downloaded.

For example, clauses that are heavily downloaded may warrant a level of re-evaluation to ensure that the standards being applied are current. On the other hand, clauses that are rarely downloaded may indicate that a standard is outdated or unnecessary.

How Does a Smart Clause Library Transform the Role of Contract Admins?

A library of clauses transforms the way that legal departments approach the drafting of contracts. Rather than searching through past contracts, lawyers use a library of pre-approved clauses. This approach minimizes the time it takes to draft contracts. Lawyers can spend more of their energy on negotiation strategy.

For contract administrators, this shift is even more important, as it transforms their job from managing files to managing the firm’s knowledge of law. This has a direct impact on drafting speed, risk mitigation, and overall efficiency.

This function can become a strategic function within an organization, as opposed to a purely administrative function.

From File Organizer to Strategic Legal Partner

A smart clause library is more than just an improvement to document management; it’s a paradigm shift in how a legal organization thinks about drafting and knowledge management.

Organizations can eliminate the risk of stale clauses being included in new contracts. Lawyers can also save more time searching through previous contracts and spend more time on strategic negotiations.

But perhaps most importantly, this opportunity represents a step-change improvement for contract administrators, as it allows them to become a library of knowledge for their organization.

If you’re ready to get started, start with the ten clauses that your lawyers use most frequently.

As the library expands, it becomes one of the most valuable knowledge resources in the organization. To learn how a structured contract lifecycle platform can help streamline this process, explore Dock 365.

Schedule a free demo to learn how legal teams can leverage Dock 365 for contract clauses, templates, and workflows within Microsoft 365.

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