Contract Turnaround Time
Average days from contract request to fully executed agreement
What is Contract Turnaround Time?
Contract turnaround time is the average number of days from a contract being requested to it being signed. It shows how quickly the legal team, and the business, can get agreements in place.
Slow contracting delays deals and projects, so shorter turnaround supports the business.
How this KPI is measured
- Function
- Legal, Risk & Compliance
- Sub-function
- Contracts Management
- Industry
- All Industries
- Type
- Lagging
- Impact
- Efficiency
- Unit
- days
- Measurement frequency
- Monthly / Quarterly
- Formula
- Sum of days from contract request to execution / Number of contracts executed
How to calculate it
Add up the days from contract request to execution and divide by the number of contracts executed.
For example, if 60 contracts took a combined 1,500 days, the average is 25 days.
Split by contract type and complexity, since simple agreements should be far quicker, and look at time spent in each stage, including waiting on the counterparty.
Where it is used
Speeding up deals
Reduce delay.
Finding bottlenecks
See where contracts wait.
Planning legal capacity
Match resource to demand.
How to improve it
Tips and common mistakes
- Separate internal time from time waiting on the other party.
- Speed should not cost quality or protection.
- Segment by contract type.
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