Contract redlining: how to make it painless?

Editing contracts sounds simple…until it isn’t.

One version turns into five. Email threads pile up. Edits get missed, clauses conflict, and no one’s sure which version is final. For legal teams, sales, and procurement, this chaos isn't just frustrating, it’s simply risky.

A WCC study shared that companies lose on average 9.2% of annual revenue due to poor contract management, including errors, missed obligations, or inefficient workflows.

And it’s not only throughout conducting contract obligations, it’s also during negotiation and redlining.

Key takeaways

• Contract redlining is critical for negotiating legal and commercial terms safely and clearly, especially in high-stakes or enterprise agreements.
• Poor redlining practices contribute to real losses, even up to 9.2% of annual revenue for companies due to missed edits, version confusion, or compliance issues.
• Avoid common mistakes like editing for the sake of it. Track changes made to a contract, use PDFs to lock final documents, and don’t accept changes without reviewing them.
• Using e-signature platforms (like Autenti) can dramatically speed up post-redlining workflows, improve audit trails, and reduce turnaround time.
• A streamlined redlining process helps teams work faster, stay compliant, and reduce negotiation fatigue—while keeping contracts legally solid.

💡 Google Docs tools to use for a more efficient redlining process:

• Suggesting mode: propose changes without editing the original text.
• Comments + @ mentions: tag team members and assign action items directly in the doc.
• Version history: view, name, and restore any previous draft with timestamps.
• Task assignments in comments: use checkboxes to track follow-ups inside the doc.

What is contract redlining?

So what is contract redlining?

Contract redlining is the process of marking up a contract to track edits, suggest changes, and negotiate contract terms between parties. It’s a crucial (and often tedious) part of the contract negotiation process. That’s because it allows both parties to suggest changes, raise concerns, and ultimately reach an agreement.

In this article, we’ll break down exactly how redlining works, why it matters, and how you can simplify the process using best practices and the right tools—whether you’re redlining in Word or Google Docs.

Why is contract redlining crucial in modern business?

We’ve already mentioned the most important part of poor contract management processes (including redlining), and that is losing revenue.

Overall, the process of editing is how businesses protect themselves when negotiating contracts.

And the benefits of redlining seem pretty obvious.

Without it, important edits can slip through, versions get mixed up, and no one knows which terms were agreed on. It’s about staying legally and commercially safe, not only in case of possible contract disputes in the future, but even for proper contract KPI measuring, analysis, or security.

Version control is a key reason redlining exists.

When multiple people are reviewing and editing the same document, you need a clear record of who changed what. That audit trail helps teams avoid confusion, finger-pointing, or signing off on outdated terms.

Redlining also gives both sides the space to negotiate the details that actually matter—like who’s liable if something goes wrong, how and when payments are made, or what happens if the contract is terminated early.

Sections that are particularly prone to redlining are:

• Termination clauses
• Payment schedules and conditions
• Limitation of liability
• Confidentiality provisions
• Dispute resolution steps

But what does that process actually look like in practice?

Do you just share the written contract draft over email to the other party, change what you want in any way you want, and send it back?

Playing email ping-pong until both parties are satisfied with the end result (or tired from the constant back-and-forth emails).

Well…you can do it exactly that way or do better.

Contract redlining process: step-by-step

Redlining a contract is like editing a group project, only with legal liability and money on the line.

Here’s how the process usually unfolds, and where things can either stay smooth or go completely sideways.

Step 1: draft the initial contract

It starts with one team—usually legal—drafting the first version.

Writing the draft sets the foundation, outlining scope, timelines, payment terms, liability, and more. But it’s just the first pass, not the finish line.

💡 Tip: use a standard contract template to speed up drafting and reduce avoidable inconsistencies across deals.

💡 Tip: include placeholder text for negotiable terms (e.g., [PAYMENT_TERMS]) so redlining focuses only on variables.

Step 2: share it with stakeholders

Next, the document is sent out for review. This might include sales, finance, legal teams on both sides, or even external counsel.

At this stage, people typically pass around a Word doc or Google Doc, sometimes over email, Slack, or a shared drive.

💡 Tip: set editing permissions and deadlines upfront to reduce back-and-forth and missed feedback windows.

Step 3: track changes (actual redlining)

This is where the editing begins.

MS Word and Google Docs are the most common redlining tools used in a traditional, manual redlining process.

For example, to redline a contract in Google Docs, you have the option to suggest new content or scratch out existing one that doesn’t fit your expectations or is in any way wrong without making actual changes to the document itself. 

To do that, simply change the Editing mode of the document to Suggestions, and you’ll be safe to leave your notes. What’s definitely an advantage to using that mode is that you don’t have to:

1. leave long comments to explain which contract redlines you had in mind,
2. explain that it was you who requested the changes (your name will be attached to the suggestion).

But if you’re up for it (or not sure what content should you suggest exactly), using Google Docs comments is also nice and practical.

Another way to redline in Google Docs or MS Word is to come up with a system.

For example:

• Change the colors of the parts you’re voting to scratch out completely to a glaring red.
• Change the colors of the parts you want to change, but don’t want to remove to a light yellow.
• Change the color of the parts you wish to leave untouched to a light green.

But, here, it’s important to:

1. Share the established system with all redlining parties (to make sure you’re aligned),
2. Figure out a way to attach one’s name to the suggestion they’re making (either a distinct color scheme or simply leaving comments next to the highlighted parts of text).

Overall, with the track changes option in Word or suggesting mode in Google Docs, stakeholders start proposing edits.

Maybe Legal wants tighter indemnity language. Procurement flags the auto-renew clause.

Whatever the case may be, glaring red text and strikeouts may pile up.

💡 Tip: stick to one platform per contract. Mixing Word and Google Docs leads to formatting chaos.

💡 Tip: assign specific people to "own" final decisions on edits and suggestions and track open issues so nothing gets missed. For example, you can assign tasks under comments in Google Docs.

Step 4: collaborate and respond

Now, the document will likely bounce back and forth.

Comments will stack up.

You might see notes like “Please clarify this clause” or “Per our last call, adjusted payment terms to Net 45.”

Without a clear workflow or centralized platform, this step is where version chaos often sets in.

💡 Tip: create a simple response workflow: who responds to which comments, and by when.

Step 5: finalize and approve

Once everyone’s edits are resolved, the final version is approved.

Ideally, that’s a clean document. Realistically, it might involve cross-checking five versions in a shared folder.

💡 Tip: lock the final file for editing and export a PDF once approved.

What’s next after redlining?

After you’ve successfully redlined the document and agreed on its content, exported the final contract into PDF to lock it, it’s time to…sign it.

Apart from making the editing process more efficient, you can also make the signing process that much easier with none other than e-signatures.

For example, with a platform like Autenti, you get the option to:

• Send the final document version for approval to users with a reviewer/approver role specifically so that they can accept it (and move the whole process forward automatically) or reject it (terminating the signature process, keeping everyone in check),
• Sign one (or multiple documents at once) completely online in just about 5 minutes,
• Send reminders to other signers or document reviewers to fulfil their duties,
• Verify other contract party’s identity (also online)
• Bind various files into one document (for example, when adding more parts to your contract after redlining),
• Create your own contract workflow dedicated to your redlining processes,
• And so much more.

Is it more efficient? 

Very much so.

For example, TZMO reduced their contract processing time by up to 90%, signing documents in 30 hours or less, with Autenti.

And the best part

With each document you get full and complete, done-for-you, version control and a full audit trail for every signature placed with Autenti (with exact date, timestamps, and IP addresses of signers.)

Try Autenti free of charge, 14 days straight.

Best practices for effective contract redlining

As you can see from the description above, the contract redlining process can be quite chaotic or be more controlled thanks to the tips shared above.

Given that, redlining can either move a contract forward or bury it in confusion.

These best practices help you avoid the mess and keep negotiations efficient, accurate, and legally sound.

Establish a shared language and clause library

Different teams often describe the same thing in different ways.

Having a pre-approved clause library helps avoid this. When everyone pulls from the same language, especially for recurring terms like NDAs, indemnity, or payment—it cuts down negotiation time and risk.

Use version control like your job depends on it

Because it kind of does.

One rogue edit in an old draft can cause major problems. Always work from a master document. Track every change. And if you're using software like Microsoft Word, Google Docs, or CLM (Contract Lifecycle Management) tools, make sure version history is visible and intact.

Assign clear ownership

Redlining isn’t a free-for-all.

Decide early who’s responsible for reviewing legal terms, who’s handling financial clauses, and who has the final sign-off. Without clear roles, decisions get delayed and accountability gets blurred.

Keep communication centralized

Don't spread comments across five emails and two Slack threads. Use one platform for edits and discussions. CLM, a contract management software, and a contract redlining software all help here—but even Google Docs comments can do the job, as long as you keep everything in one place.

Automate the repetitive stuff

If you’re manually retyping the same changes across every agreement, it’s time to upgrade.

Redlining software can automate standard edits, flag risky clauses, or even suggest alternative wording using AI. Let the tech do the heavy lifting.

Don’t skip the compliance check

Every contract must align with your legal team’s standards and current regulations. A polished contract full of incorrect or outdated clauses is still a liability. Build in one final legal review process before signatures hit the page.

Common mistakes in redlining

And of course, even experienced teams slip up when redlining contracts.

These mistakes can lead to delays, legal exposure, embarrassing oversights, or simply, the regular challenges of contract redlining that every team experiences.

Here’s how to stay sharp with things to do and that to avoid.

Making direct edits with no way to see what changed is a fast track to confusion. Always use Track Changes in Word or Suggesting Mode in Google Docs so every revision is visible and reviewable.

PDFs aren’t built for collaboration. Comments are clunky, and edits can be missed. Use formats that support clean redlining, version history, and easy commenting.

Pro tip: establish or present your redlining process to the other party, so that they also stick to it. Otherwise, you’ll both be working completely differently and creating unnecessary chaos.

“Final_final_V3_revisedFINAL.docx” isn’t a versioning system. Use timestamps, version numbers, or a CLM/e-signature tool that tracks this automatically. Never lose sight of which draft is the latest.

Blindly accepting edits can introduce risks or undo previous approvals. Each change—especially to clauses around payment, liability, or term length—should be checked and signed off by the right person.

A clause rewritten without context often leads to back-and-forth or misunderstandings. Use comments to clarify your intent, especially for non-obvious edits.

Benefits of having a smooth redlining process in place

In turn, having a smooth redlining process in place makes a huge difference.

First off, it speeds up contract turnaround by cutting down the back-and-forth confusion that usually drags negotiations out.

When every change is clearly tracked and communicated, errors and misunderstandings drop dramatically. No one’s left guessing which version is the real deal.

This clarity also strengthens your negotiation position because you’re working from a well-organized, consistent set of terms instead of scrambling through conflicting edits.

Plus, it makes collaboration between legal, sales, finance, and procurement teams way easier, since everyone’s working in the same document with clear roles and responsibilities.

Lastly, a solid redlining workflow boosts compliance and audit-readiness by keeping a complete, traceable history of all changes—critical for reducing contract risks and quickly addressing any disputes down the road.

Make redlining easy with Autenti

Contract redlining doesn’t have to be a headache.

With clear steps, smart tools (even Google Docs or Microsoft Word when used right), and a few best practices in place, you can turn what’s often a chaotic process into a streamlined collaboration.

Whether you're a legal pro or just diving into contract review, improving how you redline protects your business, helps you avoid costly mistakes, and builds smoother negotiations from draft to signature.

Remember that even though redlining is a collaborative process, it’s good to have one owner of the whole initiative who’s going to clearly define a set of rules for everyone to follow.

Take the time to refine your workflow now, and future you (and your whole team) will thank you.

And don’t forget what happens after.

Turn to online signing with a free Autenti trial (14 days) or book a call with one of our experts to help find the best plan for your complete document needs (not just redlining.)