Contract Compliance Workspace

Contract Compliance Workspace is an agentic app that helps legal and contract teams identify actively negotiated contracts that need attention because of clause deviations and terms risk. The workspace uses agentic capabilities to analyze negotiation feedback, calculate contract terms risk severity, and surface contracts with high-priority deviations.

The workspace supports both buy-intent and sell-intent contracts through separate panels:

Procurement Contract Drafts panel for buy intent contracts
Sales Contract Drafts panel for sell intent contracts

There are four documents used in this feature

Negotiation Feedback Document: Spreadsheet provided by the external party that captures requested changes to contract clauses. It includes clause title, rule details, standard position, fallback positions, risk, and required approvals.
Contract Playbook: Defines the organization’s approved negotiation positions for key clauses, with separate playbooks for buy-intent and sell-intent contracts. It guides the AI in determining whether a requested change matches the standard position, an acceptable fallback, or requires review/escalation.
Contract Risk Scoring Document: Defines how contract risk is evaluated using contract amount, clause deviations, and contract type. It assigns severity levels such as Critical, High Risk, Medium Risk, Low Risk, or No Risk based on sequential rules.
Contract Compliance Workspace Filter: Defines which contracts appear in the Contract compliance workspace agentic app panels. Contracts are filtered based on criteria such as business unit, contract type, contract terms risk severity/score, and how long the contract has been with an assignee.

Neogtiation Review Flow Overview

Upload Negotiation Feedback

Users can upload external-party negotiation feedback document from the Redwood Edit Contract UI using the Upload Negotiation Feedback smart action.

The smart action is available when:

Contract status is Draft or Under Amendment
Contract version is Current version
User has edit access to the contract
Enable for Contract Compliance Workspace is selected for the contract type in the Manage Contract Type UI
Structured terms template is attached to the contract
Terms document is not edited in the Word add-in

Upload Negotiation Feedback

The negotiation feedback document is provided by the external party and contains the requested changes to the contract document. The upload drawer supports one spreadsheet at a time, and the uploaded file must follow the specified spreadsheet format.

The requested changes must be captured using the following columns:

Field	Details
ID *	Unique identifier of the row
Status *	Supported values are Open and Closed.
Clause Number	Clause number from the contract document
Clause Name *	Clause name from the contract document
Original Clause	Clause text
Supplier 1 or Customer 1 *	The change requested or issue raised by the external party in the contract terms. The first round of negotiation will be marked with 1, and the subsequent rounds the number will be incremented to 2, 3 etc. In Buy intent contract, the negotiation starts from the supplier and Sell intent contract, the negotiation starts from the customer since we are comsidering only structured terms.
Reason	Reason for the requested change
Buyer 1	Response by the internal party

Fields marked as * are mandatory

The external party raises a change request through the negotiation feedback spreadsheet. The internal party reviews the request in the Contract Compliance Workspace agentic app and either accepts the change by updating the contract clause or rejects it by updating the issue status and response in the spreadsheet.The updated contract document and spreadsheet are then sent back to the external party. For the next negotiation round, the external party provides its response in the next available round column, such as Supplier 2 or Customer 2, and returns the spreadsheet.

The internal party uploads the revised spreadsheet to the contract again, and the system reanalyzes the latest negotiation round. The updated analysis is displayed in the Contract Compliance Workspace for review and action. This process can continue across multiple negotiation rounds. Rows marked as Closed will not be analyzed, so the internal party must ensure that each issue has the correct status before uploading the spreadsheet.

Sample Negotiation document

Negotiation Spreadsheet Format

Upload Spreadsheet

When you click on Analyze,

The document will be uploaded in the Documents tab, Negotiation Feedback Documents section
The document will be compared against the playbook to identify deviations and deviation severity
Based on the risk scoring criteria, contract terms risk severity will be evaluated and updated in the Overview tab 'Terms Risk Severity' field

Click on the Refresh button to see the status.

Negotiation Feedback Document Analysis is in Progress

If the analysis is completed successfully, you'll see the message "Spreadsheet analysis completed. View the details in the Contract Compliance Workspace agentic app." If the contract satisfies the conditions mentioned in the contract filtering criteria document, you can view the contract in the Contract Compliance Workspace agentic app.

In case of any errors, the user who analyzed the spreadsheet will get an email with the details of the error.

Error Scenarios Summary

Invalid or unsupported document (Negotiation spreadsheet document)
- The uploaded document is blank, contains only headers, is the wrong document, or does not use the required template.
Missing rules or unsupported contract type (playbook)
- No rule is defined for the selected contract type, or mandatory contract-type-specific fields are missing. Note that the contract type is case sensitive.
Missing mandatory fields
- Required fields are missing or blank in the playbook policy document or negotiation feedback spreadsheet.
Mandatory playbook document fields
- Clause title, Rule code, Rule description, Standard position, Contract type, and Fallback 1 position with corresponding fallback 1 risk
Mandatory negotiation feedback spreadsheet fields
- ID, Status, Clause Name, and at least one supplier/customer response column such as Supplier_X or Customer_X.
Invalid fallback details (playbook)
- If a fallback position is provided, the corresponding fallback risk is mandatory.
Invalid risk values
- Supported risk values are: No Risk, Low Risk,Medium Risk,High Risk, and Critical. Values are not case sensitive.
Invalid clause or data values
- Wrong clause numbers or incorrect values may exist, but some value-level correctness cannot be fully validated by the system.

Risk Scoring Error

The contract risk severity could not be evaluated for the listed contracts. Ensure that the Contract Risk Scoring evaluation document is uploaded, is not blank, contains rules for the relevant contract type, includes non-blank mandatory fields, and uses valid severity values.

Terms Risk Severity

Contract risk scoring happens automatically when a negotiation spreadsheet is uploaded. The terms risk severity is calculated based on contract amount and clause deviations. You can also run the scheduled process 'Evaluate Risk Severity for Contracts' to reevaluate the risk, if the contract amount is updated. The value helps the workspace prioritize contracts with higher risk. A new Terms Risk Severity field is available in the General section of the contract Overview tab which has the contract risk severity, Critical, High risk, Medium, risk, Low risk or No risk.

Contract Risk Severity

Contract Compliance Workspace Agentic App

The workspace focuses on contracts that are still being negotiated with the other party and where requested contract term changes are shared by the other party in a spreadsheet. It helps users review the requested changes against the organization's playbook positions. Refer to the Steps to Enable and Configure section for instructions on launching this agentic app from the Fusion Applications home page.

In the agentic app, users can

View draft and under-amendment contracts with structured terms that have negotiation feedback and terms risk.
Identify contracts with critical, high-risk, medium-risk, or low-risk clause deviations.
Review the clauses impacted by external-party negotiation feedback.
Compare requested changes with standard and fallback playbook positions.
Accept a position, reject an external-party request, or edit proposed clause language.
Preview the contract terms document with the current clause highlighted.
Update contract clause language after reviewing and accepting proposed changes.

Contract Compliance Workspace Panels

Contract Compliance Workspace Agentic App

The Procurement Contract Drafts and Sales Contract Drafts panels display actively negotiated contracts that satisfy configured filtering criteria.

Only these contracts are considered:

Contract status - Draft or Under Amendment
Version type - Current version
Terms - Structured terms
Terms document not edited using Word add-in
Intent - Buy or Sell, depending on the selected panel
Assignment - Assigned to a resource

The filtering criteria can include business unit, contract type, contract terms risk severity, and the number of days the contract has been with an assignee.

Contracts are sorted by severity first, from Critical to Low Risk, and then by assigned duration. Users can drill into a specific contract to review its clause deviations.

Clause Deviation Review

The clause details page shows all clauses with deviations for a selected contract. Deviations across all severity levels are shown and sorted by status and severity.

Each impacted clause can show:

Clause - Clause name from the negotiation feedback spreadsheet.
Requested Changes - Summary of the external party's requested changes from the negotiation feedback spreadsheet at the clause level
Severity - Highest severity across the issues identified for the clause.
Standard Position- Summary of the standard position of all the issues for the clause from the playbook.
Status - Open, Reviewed, or Completed.
Generated Using – Negotiation feedback spreadsheet of the contract used to generate the deviations.
Review - Clicking on Review opens the panel with the issues for that specific clause

Deviations

Users can review individual issues for a clause and view applicable playbook options.

Issues

Positions for the issue from playbook

For each open issue, users can compare the external-party request with standard and fallback positions from the playbook.

The position review experience can show:

- The requested change from the supplier or customer.

- Standard and fallback positions.

- Approval details when required by the playbook.

- The risk severity for each position.

- Actions to accept a position or reject the external-party request.

When a user accepts a position or saves a rejection reason, the issue status is updated and a confirmation is shown.

Issue 1 example: Supplier request doesn't match any of the positions in the playbook

Positions from the playbook

Rejection Reason

User can choose to reject the issue raised by the other party and provide a reason for the rejection.

Rejection Reason

Rejection Reason Updated

Issue 2 example: Supplier requst matches Fallback 1 position in the playbook

The change requested by the supplier falls under one of the positions in the playbook and user accepts that by clicking on Accept button

Supplier Request Matches Fallback

Confirmation message after accepting one of the positions

After accepting a position, confirmation message is displayed. Both the issues related to the clause are addressed, for issue 1, supplier's request is rejected, for issue 2, supplier's request is accepted.

Click on Review clause when all the issues are reviewed.

Confirmation Message

Review Clause

After reviewing issues for a clause, users can review the proposed clause language before applying it to the contract.

The review experience shows the key differences between the current and proposed language, including:

- Current clause language from the contract terms document.

- Proposed clause language based on accepted positions.

- Edit languate button - An option to edit proposed language.

- Preview contract button - An option to preview the contract terms document.

- Accept button - An option to accept and save the updated clause language.

When the user accepts the proposed language, the clause changes are saved to the contract.

Current and Proposed Lanugage Comparison

Preview Contract

Edit the AI proposed lauguage and save

Edit Language and Save

Clicking on Accept updates the clause in the contract and a confirmation message is displayed

Clause Updated

After reviewing each issue, set its status to Closed in the negotiation spreadsheet.

For each closed issue, record either the rejection reason if the request is rejected, or the clause update details if the external party’s proposal is accepted.

Contract Compliance Workspace helps legal and contract teams focus on the contracts that need attention during negotiation.

Key benefits include:

Faster identification of contracts with critical or high-risk deviations.
A guided review flow for clause issues and playbook positions.
Better visibility into negotiation feedback received through spreadsheets.
More consistent handling of standard, fallback, and rejected positions.
A contract-level Terms Risk Severity value that helps prioritize work.
Reduced manual effort when reviewing requested clause changes and applying agreed language.

Steps to enable and configure

Manage Contract Type

Enable the contract type for Contract Compliance Workspace agentic app from the Manage Contract Type UI.

Contract Type

Contract Playbook

For this feature, a contract playbook acts as the rulebook that guides AI-assisted negotiation review. It defines the company’s standard position for each rule, acceptable fallback positions, associated risk levels, and any approvals required before accepting a fallback. You need to maintain a different playbook for procurement and sales contracts.

When the external party uploads a negotiation feedback spreadsheet, the system compares each requested change against the playbook. Based on the clause title, rule description, standard position, and fallback positions, the AI can determine whether the requested change matches an approved fallback, introduces additional risk, or requires legal, finance, or business approval.

Up to three fallback positions are supported for each rule. In the example below, two fallbacks are shown. Contract Playbook Sample

Contract Playbook Sample

Fields marked in * are mandatory

Contract Playbook Spreadsheet Field Details

Risk levels supported are Low risk, Medium risk, High risk and Critical. If a rule is applicable for multiple contract types, create a new row for each contract type.

Column	Description
Clause Title *	The clause where the external party is requesting a change. Example: Liquidation Damages, Performance Bank Guarantee.
Rule Code *	Unique rule identifier for the requested change. Example: 1, 2, 3.
Rule Description *	Short description of the requested change or negotiation point. Example: Late delivery damages, Late delivery damages cap, PBG amount.
Standard Clause Number	Clause number from the standard contract template. Example: LD-01, PBG-01.
Standard Position *	The original contract position or standard term. Example: Liquidated damages is 5% of delayed portion of goods value per week.
Fallback 1 Position *	First acceptable fallback position if the standard position is not accepted. Example: Reduce LD rate to 3% per week.
Fallback 1 Clause Number	Clause number associated with the first fallback, if applicable.
Fallback 1 Risk *	Risk level for accepting fallback 1. Example: Low risk, Medium risk, High risk, Critical
Fallback 1 Approval	Approval required for fallback 1, if applicable.
Fallback 2 Position	Second acceptable fallback position. Example: Reduce LD rate to 2% per week.
Fallback 2 Clause Number	Clause number associated with the second fallback, if applicable.
Fallback 2 Risk	Risk level for accepting fallback 2. Example: Medium risk, High risk.
Fallback 2 Approval	Approval required for fallback 2, if applicable. Example: Finance team.
Contract Type *	Contract ype for which the rule is applicable

Contract Risk Scoring

Contract risk scoring criteria has to be captured in a document in a specific format. It is mandatory to follow the below format. You can specify the contract types and your own conditions.

Evaluation criteria:

Contract Amount
Contract Deviations
Contract Types (Mention the contract types for which risk severity needs to be evaluated)

Risk Severity Levels are as follows. Rules must be evaluated sequentially in the following order:

Critical
High Risk
Medium Risk
Low Risk
No Risk

If a contract satisfies multiple conditions, the first matching severity will be assigned.

If a contract satisfies multiple conditions, the first matching severity will be assigned.

All the below rules are applicable for contract types: NDA and MSA

ID *	Contract Amount *	Clause Deviation Conditions *	Risk Severity *
1	Any amount	If there are more than 2 critical deviations	Critical
2	>= $2,000,000 and < $3,000,000	If there is one more critical deviation OR 3 or more high risk deviations	Critical
3	>$3,000,000	At least 1 critical, high risk or medium risk deviation	Critical
4	>=$1,000,000 and <$2,000,000	> 3 high risk deviations	High risk
5	Any amount	Any deviations related to limitation of liability clause	High risk
6	Any amount	More than 2 medium risks	Medium risk
7	Any amount	<= 2 medium risk deviations	Low risk
8	Any amount	1 or more low risk deviations	Low risk

All the below rules are applicable for contract type: Item and services procurement

ID	Contract Amount	Clause Deviation Conditions	Risk Severity
1	Any amount	If there is at least 1 critical deviation	Critical
2	Any amount	If there is at least one high risk deviation	High risk
3	Any amount	If there are more than 3 medium risk deviations	High risk
4	Any amount	<= 3 medium risks	Medium risk
5	Any amount	1 or more low risk deviations	Low risk

Contract Filtering Criteria for Contract Compliance Workspace

The purpose of this document is to define the filtering criteria used by the various panels in the Contract Compliance Workspace agentic app. Contracts that satisfy the configured filter conditions will be displayed in the applicable workspace panels.

Please find the sample document. It is mandatory to follow the below format. You can specify the contract types and your own conditions. It is not mandatory to use all 4 criteria. If you are not using the Assign User functionality in contracts, don't add that condition.

Add the filtering criteria for the panels Procurement Contract Drafts and Sales Contract Drafts.

Contract Filtering Criteria for Agentic App Procurement Contract Drafts

Only the following criteria are supported.

Business Unit
Contract Type
Contract Terms Risk Severity
Contract is with an assignee for more than X days

If one of the filter conditions are satisfied, the contract will be displayed in the panel.

Filter *	Condition *
1	Business Unit is Vision Operations AND Contract Type is NDA AND (Contract Terms Risk Severity is Critical OR High Risk) AND With assignee for more than 10 days
2	Business Unit is Vision Services AND Contract Type is (Item and Services OR Master Agreement OR NDA) AND Contract Terms Risk Severity is Critical
3	Business Unit is Vision India AND Contract Type is Item and Services AND Contract Terms Risk Severity is (Critical OR High Risk OR Medium Risk) AND With assignee for more than 7 days

Sales Contract Drafts

Only the following criteria are supported.

Business Unit
Contract Type
Contract Terms Risk Score
Contract is with an assignee for more than X days

If one of the filter conditions are satisfied, the contract will be displayed in the panel.

Filter *	Condition *
1	Business Unit is Vision Operations AND Contract Type is SaaS contracts AND (Contract Terms Risk Score is Critical OR High Risk) AND With assignee for more than 10 days
2	Business Unit is Vision Services AND Contract Type is AND Contract Terms Risk Score is Critical AND
3	Business Unit is Vision India AND Contract Type is Item and Services AND Contract Terms Risk Score is (Critical OR High Risk OR Medium Risk) AND With assignee for more than 7 days

The documents are to be uploaded in the Policy node in AI agent studio. User who uploads these documents should a custom role (refer the below section).

Procurement Contract Deviation Policy - Contract playbook for procurement contracts
Sales Contract Deviation Policy - Contract playbook for sales contracts
Contract Risk Scoring Policy - Contract risk scoring document
Contract Compliance Workspace Filter Policy - Contract filtering document for Contract Compliance Workspace

1. Create a new custom role

Home page -> Tools -> Security Console -> Create a new role
Provide role name, role code,
Role Category -> “CRM - Job Roles”
Enable Permission Groups -> enable checkbox

Create Custom Role to Upload Documents

2. Naviage to Function Security Policies tab and add the following privileges:

Manage AI Setups
Manage Generative AI Features in Sales
Use Generative AI Features in Sales

Add Privileges

3. Add permission groups

Navigate to Permission Groups tab and add the following permission groups

create:FunctionTemplate
delete:FunctionTemplate
read:FunctionTemplate
update:FunctionTemplate
create:FunctionTemplateAttachment
delete:FunctionTemplateAttachment
read:FunctionTemplateAttachment
update:FunctionTemplateAttachment
create:PromptTemplate
delete:PromptTemplate
read:PromptTemplate
update:PromptTemplate

Also add Security Views as "All Rows and All Fields" for each permission group.

Add Permission Groups and Security View

4. Add Users

Add Users

Save and close and run “Import User and Role Application Security Data” scheduled process.

5. Upload the documents in the policies

Procurement Contract Deviation Policy - Contract playbook for procurement contracts
Sales Contract Deviation Policy - Contract playbook for sales contracts
Contract Risk Scoring Policy - Contract risk scoring document
Contract Compliance Workspace Filter Policy - Contract filtering document for Contract Compliance Workspace

Navigate to Home page->Tools->AI Studio

Click on Try Now

AI Agent Studio

Click on Policy on the right side and navigate tot he Policy tab.

Search for Contract Risk Scoring Policy and click on the eye icon.

Policy

Click on Customize

Customize the Policy

Upload file, add security roles and Generate the Policy

Role - Select the custom role you had created
Template - Don't make any change to this field
Choose File - Upload the risk scoring criteria file
Click on Generate button

Generate Policy and Publish

Save and Publish the policy

Follow the same steps to upload files for

Procurement Contract Deviation Policy
Sales Contract Deviation Policy
Contract Compliance Workspace Filter Policy

Enable Contract Compliance Workspace in Home Page

Activate a sandbox that has the Structure tool in it. Don't include spaces or special characters in the sandbox name.
Click Navigator > Configuration > Structure.
Click on Create->Create Page Entry

Create Page Entry

4. Enter the details

Name - Contract Compliance Workspace
Select an icon
Select Group as Contract Management
Set Yes to Show on Navigator and Show on Springboard
Select Link Type as Static URL
Click on the Pencil icon

Page Details

Enter the below URL. Replace host with your env URL. Click Validate and OK. Click Save and Close.

https://<host>/hcmUI/redwoodAI/ora_contracts_compliance_workspace

Link Editor

Save the page entry and publish the sandbox.

You can access the agentic app under Contract Management.

Contract Compliance Workspace

For more details on creating page entries refer Create and Edit Page Entries

Access requirements

Security and Access

The Contract Compliance Workspace uses contract intent and user privileges to determine available panels and actions.

Procurement Contract Drafts Panel - Supplier Contract Manager
Sales Contract Drafts - Customer Contract Manager

Users need contract edit access to upload negotiation feedback document and update contract clauses. Contracts shown in the workspace also respect the user's contract access.