How to Implement Contract Redlining Software In 2025

You know how reviewing contracts can be a total time sink? Between hunting for the latest version, figuring out who changed what, and juggling everyone’s feedback, it’s a mess. Contract redlining software solves these problems by taking over the most tedious parts of the process.

It’s like having all the tools you need in one place. You can track changes, collaborate in real time, and always know you’re working on the right draft. No more endless email threads or missed edits—it’s all organized and simple to manage.

If you’re tired of contract reviews taking forever, this software might be exactly what you’ve been looking for. Keep reading to see how it works.

What Is Contract Redlining?

Contract redlining is the process of reviewing and editing a contract by marking changes directly on the document.

When you redline a contract, you usually:

• Highlight terms or clauses for revision
• Add comments or suggestions for discussion
• Track changes to ensure transparency and clarity

The goal of redlining is to ensure all parties agree on the final terms before signing, reducing misunderstandings and potential disputes later on in the contract lifecycle.

But while the contract redlining process is essential, it can quickly become tedious when dealing with multiple versions, endless feedback, and tight deadlines. That’s why many legal teams turn to software to manage the process and save time.

What Is Contract Redlining Software?

Contract redlining software is a digital tool that simplifies the process of reviewing and editing contracts.

If you’ve ever had to comb through a lengthy document, mark up changes, or coordinate feedback with a team, you know how frustrating it can be to manage everything manually. Redlining software changes that by making the entire process faster, more accurate, and far less chaotic.

The term “redlining” comes from the traditional practice of marking edits and comments in red ink. In the digital age, this process has evolved into real-time collaboration and automated tracking, all within a centralized platform.

Redlining software helps eliminate redlining delays, such as misunderstanding edits or struggling to agree on terms, by making changes more transparent and easier to discuss.

At its core, this software ensures all parties can review, comment on, and approve contracts in one place, which helps cut down on miscommunication and saves valuable time.

How Does It Work?

Contract redlining software generally follows a standard process to simplify reviewing and editing contracts, but the specific features and workflows can vary depending on the tool. Here’s how it typically works:

1. Uploading the Contract

Most tools allow you to upload contracts in formats like Word or PDF. Some even let you create contracts directly within the platform, depending on their capabilities.

Contract review services like Percipient allow you to send your legal documents via email, Jira, or Slack.

2. Making Edits and Redlines

Once you’ve uploaded the contract, you can dive right into editing. The software makes it easy by automatically highlighting changes—whether terms are added, removed, or adjusted. This keeps everyone on the same page and helps avoid any confusion about what’s been updated.

Here’s what you can do while editing:

• Highlight changes: The software visually marks edits so they’re easy to spot.
• Suggest alternative language: If something doesn’t align with your preferences, you can propose new wording.
• Add comments: Need to clarify a clause or ask a question? You can leave notes directly on the document.
• Resolve edits: Once everyone agrees, edits can be accepted and finalized right in the tool.

This step helps make sure all parties can clearly see the proposed updates and collaborate effectively without the back-and-forth emails or missed details.

3. Tracking Changes

One common feature is automatic change tracking. Every edit is logged, often with details on who made it and when, to help ensure transparency.

4. Adding Comments and Suggestions

If a clause needs clarification or negotiation, you can add comments or suggest alternative wording. These notes stay within the document, eliminating the need for back-and-forth emails.

5. Collaboration Features

Most tools support collaboration, but how they handle it can differ. Some offer real-time editing where multiple users can work simultaneously, while others focus on asynchronous updates with notifications for changes.

6. Version Comparisons

A popular feature is the ability to compare drafts side by side. While nearly all tools provide some version control, the layout and depth of comparisons can vary.

7. Final Approval and Integration

After everyone reviews and agrees on the changes, the contract can be finalized. Many tools also integrate with e-signature platforms or other contract management systems to streamline the process further.

While the core functionality of contract redlining software remains consistent—editing, tracking, and collaboration—specific tools may offer unique features or integrate better with certain workflows. That’s why it’s important to choose a tool that aligns with your team’s needs and existing processes.

How Can Software Improve Contract Redlining?

Manual redlining can feel like a chore, especially when juggling multiple edits and stakeholders. Here are some of the common headaches people face:

• Keeping track of edits: Trying to figure out who made what change—and when—can turn into a guessing game.
• Dealing with version chaos: Ever worked on “Final_Final_v3”? It’s all too easy to lose track of the latest version.
• Handling scattered feedback: Consolidating comments from emails, chats, and meetings is like piecing together a puzzle with missing parts.
• Comparing drafts by hand: Going line by line to spot changes is not only time-consuming but also prone to errors.
• Waiting on approvals: Without a clear process, getting sign-offs can take forever and delay important deadlines.

These challenges make manual redlining more tedious than it needs to be. That said, legal departments that want to speed up their contract management process will greatly benefit from redlining software.

How Software Solves These Issues

Contract redlining software takes the pain out of reviewing and editing contracts. Automating time-consuming tasks and organizing everything in one place makes the whole process faster and easier to manage. Let’s break down how it helps:

Automated Change Tracking

Keeping track of edits manually can get messy fast. Redlining software does the heavy lifting by automatically highlighting changes and logging who made them and when. You’ll never have to guess where an edit came from or worry about missing anything important.

Simplified Version Control

Tired of hunting through email threads for the latest draft? Redlining tools keep all versions in one place, so you always know you’re working on the most up-to-date document. No more mix-ups or accidentally editing the wrong file.

Real-Time Collaboration

Getting everyone on the same page can be tricky when edits and feedback come from all directions. With real-time collaboration, multiple people can work on the document at the same time.

Changes and comments show up instantly, which makes it easy to stay in sync and move things along quickly.

Quick Comparisons

Manually comparing drafts is not only a hassle—it’s easy to miss something. Software with side-by-side comparison features lets you spot differences instantly.

Structured Approval Workflows

Waiting for approvals can feel like watching paint dry. Many tools solve this with built-in workflows that notify stakeholders when it’s their turn to review or sign off. This keeps the process moving smoothly and avoids unnecessary delays.

Percipient Can Automate Your Redlining Process

Reviewing contracts isn’t anyone’s favorite task. It’s tedious, it eats up time, and when juggling dozens (or hundreds) of agreements, the process can quickly spiral out of control.

Percipient changes the game by combining smart AI with legal expertise to make contract reviews faster, easier, and far less stressful.

Take a look at how Percipient works:

Step 1: Personalized Onboarding

The journey begins with a deep dive into your organization’s needs. Percipient customizes its AI to match your playbook standards, preferred language, and key clauses, so a solution is tailored to your business.

Step 2: AI-Powered Contract Analysis

Once setup is complete, the AI gets straight to work. Whether contracts come via email, Slack, or Jira, the software reviews them for inconsistencies, flags potential issues, and suggests edits based on your preferences. It even captures and organizes metadata to save valuable time.

Step 3: Professional Legal Review

Not every contract is straightforward, which is why Percipient’s legal experts step in. They review the AI’s suggestions, handle tricky clauses, and fine-tune the details to make sure the contract meets your standards.

Step 4: Organized Feedback Process

Once reviewed, contracts are returned with detailed redlines and explanations. If more adjustments are needed, the process is straightforward, ensuring all parties can easily finalize agreements.

Tired of contract redlining dragging on? Let Percipient handle the heavy lifting with AI-powered precision and expert legal insights.

Schedule a discovery call now to see how it can transform the way your team works!

FAQs About Contract Redlining Software

What is redlining software?

Redlining software is a tool designed to make the contract negotiation process smoother. It allows you to mark edits, track changes, and collaborate with stakeholders in real time to make sure everyone stays aligned while reviewing and finalizing contracts.

How to do redlining in a contract?

To redline a contract, you highlight proposed edits, add comments for clarification, and track changes directly in the document. Redlining software simplifies this process by automating change tracking, enabling collaboration, and keeping all updates organized in one platform.

What are the tools for redlining?

Popular tools for redlining include Percipient, Microsoft Word, PandaDoc, and DocuSign. These tools offer features like change tracking, version control, and integration with other systems, helping streamline the contract negotiation process.

What is the best contract management software?

The best contract management solution depends on your organization’s needs. For example, Percipient is ideal for businesses seeking a combination of AI-powered contract redlining and expert legal review, while tools like DocuSign focus on simplifying workflows with e-signature capabilities. Assess your team’s priorities to find the right fit for your contract process.