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Legal operations

Automate contract renewals to accelerate legal service delivery

Renewals are predictable work that still catches teams out. Automating them gives legal time back and stops contracts rolling over by accident.

SMSonal MehtaApr 10, 2023 · 4 min read

Legal teams are under pressure to deliver faster without adding people. Contract renewals are a good place to find time. They are predictable, they recur and much of the work is administrative: finding the contract, checking the terms, chasing the business owner and drafting the renewal. Yet renewals are also where costly mistakes happen, such as an auto renewal nobody noticed or a price increase nobody challenged.

Automating renewals lets legal spend less time on routine steps and more on negotiation and risk. This guide explains how renewal automation supports legal service delivery and sets out five steps to put it in place.

What are the five steps to automate contract renewals?

1. Centralize contract data

You cannot automate renewals for contracts you cannot find. Bring every agreement into one repository, and use AI to extract renewal dates, notice periods, auto renewal clauses and price change terms from each one, including legacy contracts. A contract manager checks the extracted data. Every stakeholder then works from the same current information.

2. Set up renewal alerts

Build alerts around the notice period, not the expiry date. A contract that auto renews unless notice is given 90 days before expiry needs an alert well before that window opens. Alerts should go to the business owner and the contract manager, with escalation if nobody acts.

3. Automate the review

Route each contract due for renewal through review and approval based on rules you set, such as value, risk level or contract type. The review should ask the questions that matter: is the service still needed, how has the supplier performed, what does the contract allow on price, and are any terms out of date?

Bring obligation history into the review. If the supplier missed service levels, owes credits or failed to provide required certificates during the term, the renewal is the moment to raise it. That evidence turns a renewal from a formality into a negotiation, and it only exists if obligations were tracked after signature. See Obligationflow.

4. Automate the renewal itself

Once a renewal is approved, generate the renewal document or amendment from your templates, send it for review and signature, and update the contract record with the new term, dates and value automatically.

5. Monitor renewal performance

Track renewal outcomes: how many contracts renewed, renegotiated or ended, how many renewed without review and how often deadlines were close. Reports show where the process works and where it needs attention.

What renewal decisions should a person make?

Decision Information the system provides Who decides
Renew as is Terms, usage and supplier performance Business owner
Renegotiate Price change clauses, market comparisons, past concessions Procurement or sales with legal
End the contract Notice requirements and exit terms Business owner with legal
Consolidate Overlapping contracts with the same counterparty Procurement

Automation brings the right information to the right person in time. The decision stays with them. In Aavenir, Aavenir AI extracts the renewal terms and a person approves every result.

What goes wrong with manual renewals?

  • Silent auto renewals: contracts roll over at old or higher prices because nobody saw the notice date.
  • Late reviews: the business learns about a renewal days before the deadline, with no time to negotiate.
  • Lost negotiating power: without performance data, the company renews on the supplier's terms.
  • Stale terms: contracts renew with clauses that no longer meet current policy or regulation.
  • Duplicate spend: several departments renew overlapping services.

Each of these is avoidable with data, alerts and a workflow. See contract renewal management.

See renewals managed end to end We will show Aavenir AI extracting renewal terms, alerts reaching owners and a renewal moving through approval and signature in Contractflow.
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How should you get started?

Start with the contracts that cost most when they renew by accident: software subscriptions, facilities services and other high value agreements with auto renewal clauses. Extract their renewal terms, set alerts on notice dates and assign owners. Once that works, extend the process to every contract type.

Agree ownership before you switch alerts on. Every contract needs a named business owner who receives the alert and makes the renewal decision, and a backup for when that person moves on. Ownerless contracts are the ones that renew by accident.

For portfolio wide questions, such as which contracts renew in the next six months or which allow price increases, Aavenir Atlas answers across every agreement.

The bottom line

Contract renewals are predictable, so they should never surprise anyone. Centralize renewal data, alert owners at the notice date, automate review and renewal documents, and track outcomes, and legal gains time while the business stops renewing by default.

Frequently asked questions (FAQ)

Frequently asked questions

Why automate contract renewals?

Automating renewals removes routine steps such as finding contracts, tracking dates and drafting renewal documents, so legal can focus on negotiation and risk. It also prevents silent auto renewals and missed notice periods, which are among the most common and costly contract mistakes. Learn about contract renewal.

When should a renewal alert be sent?

Base alerts on the notice period, not the expiry date. If a contract requires notice 90 days before it renews, alert the owner well before that window opens, so there is time to review usage, performance and terms. See contract renewal management.

Can renewals be automated on ServiceNow?

Yes. Contractflow runs natively on ServiceNow, extracts renewal terms with Avy, sends alerts to owners, routes reviews and generates renewal documents for signature. It connects with ServiceNow Legal Service Delivery and also runs standalone. See Contractflow.

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See your contracts run on one record.

  • 1 A 30 minute walkthrough Built around your team, whether that is procurement, legal, IT or finance.
  • 2 Your contracts, not ours Bring a few sample agreements and watch Aavenir AI extract and review them.
  • 3 ServiceNow or standalone We show the deployment that fits the systems you already run.

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