In the latest episode of the Contract Heroes Podcast, Hal Bretan, Executive in Residence for Contract Standards at World Commerce & Contracting (WorldCC), shared his expertise on how organizations can transform the contracting process through improved “speed to contract.” With decades of experience in corporate law and contract management, Hal is a leading voice in the industry, advocating for efficiency and fairness in contracting processes. If you’re looking for ways to reduce negotiation times and foster more collaborative partnerships, this deep dive into Hal’s insights will help you unlock the full potential of your contracts.
Hal Bretan: A Leader in Contracting Innovation
Hal Bretan has spent over 40 years navigating the complexities of corporate law and contract management. As a lawyer with extensive experience advising organizations across industries, he has seen firsthand how outdated practices can stall negotiations, prolong deal closures, and erode trust between parties.
In his role at WorldCC, Hal focuses on developing practical tools and resources that help businesses rethink their approach to contracts. His work at WorldCC emphasizes the importance of fair and balanced agreements that reduce friction during negotiations, paving the way for smoother, faster negotiations. Whether working with global corporations or smaller enterprises, Hal’s strategies offer actionable solutions to help organizations streamline their contracting processes and foster stronger partnerships that drive measurable business outcomes.
Understanding Speed to Contract
“Speed to contract” refers to the time it takes to move from a handshake agreement on a business deal to a finalized, signed contract. Hal explained that this timeline plays a crucial role in determining how quickly both buyers and sellers can unlock the value of their agreements. Buyers rely on an efficient contracting process to access goods and services that support their operational goals, and sellers benefit from faster revenue recognition, allowing them to reinvest in their business.
The lengthy nature of traditional negotiations often delays these advantages, leaving both sides frustrated and uncertain about the future of their relationship. Resources may be wasted as teams repeatedly negotiate non-critical risks or revisit clauses that could have been resolved earlier. Hal stressed that improving speed to contract is not only about saving time, but also setting the stage for stronger partnerships and smoother future interactions.
The Cost of Delays in Contracting
Inefficiencies in contracting can erode up to 9% of a company’s annual revenue, significantly impacting profitability and overall operational efficiency. Delays also tie up critical personnel, such as legal teams and decision-makers, who could be focusing on more strategic priorities. For businesses operating in competitive markets, slow contracting can mean lost opportunities and strained relationships with key partners.
Addressing the Roadblocks to Faster Contracts
One major bottleneck in contract negotiations is the use of one-sided contract templates, which often prioritize protecting one party from every conceivable risk. Hal explained that such documents often invite pushback, prolonging the negotiation process. While this approach may offer comprehensive coverage, it often results in excessive delays and strained negotiations.
The Importance of Balanced Agreements
Hal highlighted the value of starting with fair and balanced contract templates, which set the tone for smoother negotiations. When both parties feel their interests are represented in the agreement, negotiations proceed more smoothly and trust is established early in the relationship. Organizations that adopt balanced templates also experience faster deal closures and fewer disputes during negotiations, creating the foundation for ongoing collaboration that benefits both parties.
Why Traditional Practices Persist
Many organizations hesitate to change their contracting practices, often clinging to methods that have been in place for years. Legal teams often default to templates that focus on exhaustive risk protection, aiming to protect their organizations from worst-case scenarios. While this approach might seem like the best way to protect the organization, Hal explained that it usually leads to longer negotiations and unnecessary roadblocks. Hal encouraged businesses to rethink their approach, emphasizing the importance of efficiency and collaboration over rigid adherence to tradition.
Tools and Strategies for Accelerating Contracting
To help organizations tackle inefficiencies in their contracting processes, WorldCC has developed resources – such as their contracting principles – to provide standardized guidance on creating fair and practical agreements. These principles address key clauses like warranties, limitations of liability, and termination terms, offering a clear framework to reduce friction during negotiations. Importantly, these resources are publicly accessible, making them a valuable asset for businesses seeking to revamp their contracting processes.
Using Risk Prioritization Frameworks
Not all contract clauses carry the same level of importance. Hal recommended using a risk prioritization framework to identify which issues require the most attention. Teams can evaluate risks based on their likelihood and potential impact, allowing them to direct their efforts towards resolving critical concerns while expediting less significant issues. This targeted approach allows for faster, more efficient contracting without sacrificing necessary protections.
Overcoming Resistance to Change
Implementing a “speed to contract” approach requires a cultural shift. Many organizations are reluctant to abandon traditional methods due to long-standing habits and assumptions. Hal acknowledged this resistance and noted that fostering change involves both top-down leadership and grassroots efforts. Encouraging collaboration among stakeholders—from legal teams to procurement and sales—is key to achieving consensus and driving efficiency.
Building Cross-Functional Alignment
Regular cross-departmental meetings provide a platform for teams to discuss priorities, share insights, and align on goals. Hal shared that organizations adopting this collaborative approach have been able to reduce delays, improve communication, and create more cohesive strategies for managing contracts.
Benefits of Faster Contracting
Organizations that prioritize faster contracting processes can unlock measurable benefits that go beyond saving time. Hal explained that reduced negotiation times lower administrative costs by freeing up legal, sales, and procurement teams to focus on other critical tasks. Faster deal closures can also improve cash flow, allowing companies to reinvest in growth opportunities or secure additional business.
Hal pointed out that these improvements don’t happen by accident; they rely on tracking meaningful metrics. Time-to-signature and negotiation duration are key data points that provide clear evidence of inefficiencies. By regularly measuring these metrics, organizations can identify where delays occur, such as in specific clauses or approval workflows, and implement targeted solutions to eliminate bottlenecks.
Training for Contracting Excellence
WorldCC offers interactive workshops designed to educate non-contracting professionals about contract efficiency and risk prioritization. These sessions encourage cross-departmental dialogue and equip participants with actionable strategies to improve their contracting processes. According to Hal, such workshops have been well-received, making these workshops a powerful tool for driving organizational change.
Unlocking Greater Value Through Efficient Contracting
Speeding up the contracting process is not just about efficiency; it’s about fostering better relationships, reducing costs, and unlocking greater value for all parties involved. As Hal Bretan eloquently noted, the journey toward faster contracting starts with small, intentional steps, such as adopting balanced templates to prioritizing high-impact risks. By embracing these strategies, organizations can turn contracting into a competitive advantage that accelerates revenue growth and strengthens relationships with key stakeholders.
This episode of Contract Heroes was brought to you by Koho Consulting, your trusted partner in optimizing contract lifecycle management solutions.