Contract management software reimagined: recording contracts as assets in EcholoN

Contracts are the backbone of business relationships. They govern customer projects, supplier agreements and employment relationships. In many medium-sized companies, however, these documents are still piled up in filing cabinets, scattered across various folder structures or kept in Excel lists. It is easy to lose track of notice periods, extensions and important clauses. In addition, contracts contain legal relationships, costs and business-critical information. They must be stored securely, easy to find and documented in a traceable manner.

Modern contract management software solves these problems by digitally recording and structuring contracts and linking them to reminder and analysis functions. EcholoN goes one step further: the system treats contracts not only as documents, but as assets that can be managed like hardware, software or licences. The following guide explains why this approach makes sense, which compliance requirements need to be taken into account, and how you can use EcholoN to manage your contracts efficiently, transparently, and in an audit-proof manner.

Why modern contract management is critical for businesses today

Risks of traditional contract management

Without structured software, managing hundreds of contracts can quickly become a burden. Without a centralised system, deadlines are forgotten, contracts disappear into email inboxes and Excel files, or are accidentally renewed. This has concrete consequences:

• Financial risks: Missed cancellation deadlines can lead to automatic renewals with higher costs. Failure to meet service levels or forgotten renewal dates result in contractual penalties.
• Legal uncertainties: Companies that cannot access their obligations at any time are operating in a grey area. A lack of evidence of contract changes or responsibilities increases the risk in audits and legal proceedings.
• Time-consuming: Teams spend hours searching for contracts or manually entering them into calendars. A digital process saves time and prevents errors.

Digital contract management as a solution

Modern contract management software digitally maps the entire contract lifecycle. At its core is a central contract database in which all documents are stored in a structured manner. Important basic functions include quickly finding contracts, monitoring termination and renewal deadlines, and tools for creation and editing. Modern solutions offer digital signatures, approval workflows and reporting functions. They reduce manual effort, minimise errors and create transparency regarding costs, revenues and responsibilities.

Contract lifecycle management

A modern contract management software system with AI support helps companies and organisations to manage contracts digitally, digitise them and create them automatically. The software provides an overview of all contracts in the dashboard, so that contracts and deadlines remain in view. Through the direct integration of signature providers – DocuSign & Co. – users can sign contracts digitally or sign them directly in digital form to make processes smooth and uncomplicated.

EcholoN integrates upstream and downstream systems, allows archiving and management of contracts in a contract file, searching and extracting contract data and contract information, as well as contract review and analysis of contract content with text modules and contract templates. Such CLM solutions are intelligent, offer flexibility and freely configurable functions for individual requirements, minimise risks, provide valuable insights for informed decisions, support the legal department and comply with regulations such as DORA, the Digital Operational Resilience Act.

From document to asset: the crucial change in perspective

Why contracts are considered assets

In traditional systems, contracts are viewed as static files. This way of thinking falls short. Contracts define rights, obligations and economic conditions; their structured availability supports decision-making processes, risk management and operational procedures.

EcholoN considers contracts to be assets – similar to hardware, software or licences. This perspective offers several advantages:

1. Holistic life cycle: A contract has a life cycle that begins with its conclusion, continues through adjustments and renewals, and ends with its termination. As an asset, this cycle can be planned, controlled and evaluated in the same way as an IT asset.
2. Cost and benefit perspective: Contracts contain costs (e.g. licence fees) and service levels. Assigning them to assets enables budget planning and shows which assets are financed by which contract.
3. Risk assessment: Linked contracts show which obligations are tied to specific assets – for example, minimum terms, renewal clauses or SLAs. This allows risks to be identified and controlled at an early stage.

What data a contract asset contains

Setting up a contract management archive begins with capturing information according to contract type. For each contract, you should maintain at least the following data:

• Internal information: Contract owner, department, cost centre.
• Supplier information: Company name, contact person, contact address.
• Status: Whether the contract is active, under negotiation, approved or terminated.
• Date information: Start, termination and end dates, as well as renewal or withdrawal options.
• Asset reference: The contract must be linked to the associated asset in the asset repository.

Additional data is required for special contract types. An activity-based maintenance contract contains information about individual activities, their frequency and the budget per activity. Service contracts require information about service levels, start times, service windows and methods for performance measurement. Linking this data to assets enables comprehensive analysis and serves as a basis for maintenance and investment decisions.

Three starting points for recording your contracts

Planon suggests three key steps for recording contracts as assets:

1. Link contracts to the asset repository. This supports reactive and planned maintenance processes and enables better analysis.
2. Implement alerts and notifications in your process or contract system to assist with contract terminations or renewals.
3. Link all digital or scanned contract documents to the relevant contract to ensure a central source of data.

These recommendations fit perfectly with the EcholoN approach, in which contracts become part of the asset structure.

Business value: transparency, efficiency, cost certainty

Recording contracts as assets in EcholoN creates tangible added value:

• Time savings and efficiency: Automated processes, reminders and centralised data reduce administrative effort. Teams spend less time searching and maintaining Excel files and can concentrate on core tasks.
• Reduction of errors and risks: Clear structures, automatic reminders and versioning minimise the risk of forgotten terminations or misplaced documents. Compliance risks are reduced through audit-proof storage and audit trails.
• Transparency and control: Dashboards provide an overview of all contracts. Those responsible can see at a glance which costs are associated with contracts and who is responsible.
• Strategic decision-making basis: By linking contracts to assets and services, they become predictable corporate assets. They serve as a basis for budget planning, risk assessment and contract negotiations.

Governance and audit compliance: Documentation that passes audits

Many companies fail audits or certifications because they have not documented contracts in an audit-compliant manner. EcholoN supports documentation that convinces auditors:

• Complete history: Every change to a contract is logged in a traceable manner. You can see at any time who made which changes and when.
• Tamper protection: Cryptographic hashing and digital signatures prevent documents from being changed without notice.
• GDPR-compliant deletion: Contracts can be automatically deleted after the retention periods have expired. The deletion process itself is documented.
• Fine-tuned rights assignment: Role and rights concepts ensure that only authorised persons have access.

Conclusion: Establish contract management as a strategic business process

Contracts are more than just documents – they are assets with rights, obligations, costs and risks. Professional contract management transforms distributed files and Excel lists into a centrally controlled, traceable and evaluable information base. EcholoN connects contracts with your asset landscape, providing a clear view of obligations, budgets and risks.

Companies benefit from greater efficiency, cost certainty and legal certainty.

Would you like to know how EcholoN can be integrated into your existing IT landscape? Find out more about our IT service management solution or discover the ticket system, the service desk or our field service management. We are happy to provide individual advice and a demo of our contract management functions – please contact us!