Estimate the number of possible contract files you need to review for this document extraction project. This estimate should include all PDF, docx, and other document files that may or may not be contracts or contract-related. This is your starting point.

Removing duplicate files is necessary in order to determine the number of unique documents in need of review. The number of duplicates can vary significantly depending on how the documents have been gathered.

If you don't know how many duplicates you have, 10% is a reasonable baseline assumption for calculating ROI.

Many legacy repositories contain files that are not contracts, and these files are typically set aside from the extraction work. Actual counts will vary by how the documents have been gathered and whether there have been previous attempts to isolate contract documents.

If you don't know what percentage of your files are not contracts, 10% is a reasonable baseline assumption for calculating ROI.

The number of out-of-scope, expired contracts will vary depending on the age of the company, as well as the type of contracts in the portfolio.

If you don't know what percentage of your contracts are inactive (out of scope/expired), 25% is a reasonable baseline assumption for calculating ROI.

Typical contract portfolios contain a mix of "families" of "parent" contracts and related documents such as amendments, renewal notices, and "child" documents like SOWs or purchase orders. 

More complex portfolios typically have more amendments, more “child” documents, and shorter page lengths per documents. More complex portfolios also typically have more references (contract links).

This is the number of risk and operational data points you need to extract to complete your project. Examples include: Limitation of Liability, Payment Terms, Force Majeure, and Indemnities.

The number of data points needed can vary based on your project scope, but 15 risk/operational data points is reasonable baseline.

This is the Cost per hour of client internal or 3rd party resources to do extraction/paralegal work. Labor costs will vary considerably for in-house vs external, on-shore vs. off-shore, the complexity of data points, and experience of the extractor. 

We are using $30 per hour as reasonable assumption in our model but this can be adjusted as you see fit.

This is the cost per hour of client internal or 3rd party resources to review extraction work. This work entails quality control (QC) of extracted organizational data points, quality control (QC) of document links, and quality control (QC) of extracted operational and risk data points. Labor costs will vary considerably for in-house vs external, on-shore vs. off-shore, the complexity of data points, and experience of the extractor. 

We are using $50 per hour as reasonable assumption in our model, but this can be adjusted as you see fit.