It is common for external factors such as new legal or business changes to affect an existing contract. A company using only a few standard contracts may not require much time to go through its contracts manually to address such issues. However, for companies with hundreds or thousands of contracts, substantial effort may be needed just to identify which contracts are impacted. That is where a robust technology-enabled Contract Review and Analysis workflow offers a solution for companies who must find and analyze their contracts efficiently.
A timely example of this problem is the upcoming end to using LIBOR as the interest rate benchmark in 2021. The London Interbank Offered Rate (LIBOR) is the reference interest rate for millions of contracts and the end of LIBOR will have a substantial effect on financial services firms, businesses and customers. Organizations are being urged to start preparing now. However, for many, the first obstacle is identifying which contracts are affected and how. Manual review on this scale would be cost-prohibitive and inefficient.
Heretik is a Relativity application that marries text analysis machine learning models and flexible document review capabilities. It uses proprietary technology and data analytics to expedite tracking, managing and analyzing contracts. In a situation such as involved with LIBOR, CDS’s Contract Review and Analysis using Heretik can efficiently extract relevant information from contracts and convert them into a searchable and easy to use database. The software can break every sentence/section of a contract into specific data points that capture important information, such as payment provisions. As a result, when an analysis of numerous contracts is required, reviewers can quickly analyze contracts by using normalized and populated data points as opposed to reviewing that section in every contract and keeping a separate list. There is also a robust compare and analysis functionality within the program, both for entire contracts and specific sections.
While effective use of this process involves some manual review by contract attorneys, it is guided by Heretik’s powerful technology and the in-depth expertise of CDS’s team of lawyer-technologists. CDS’s Contract Review and Analysis using Heretik makes contract analysis 3 times more efficient than traditional review.
Contact CDS to learn how our Contract Analysts can use machine learning and AI to power your contract review.