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Contract Extraction: Everything You Need to Know in 2024

In this article, we will explore how automated contract data extraction works. Read on to learn more!

What Is Contract Extraction? 

Contract extraction is the process of using software to identify and pull out key information from legal contracts, such as dates, names, and terms. This method helps streamline contract management and ensures key details are quickly accessible and organized.

Example: A company is managing hundreds of contracts and uses contract extraction software to automatically identify and catalog the expiration dates and payment terms of each contract. This enables the company to efficiently plan for renewals and budgeting without manually reviewing each document.

How to Automate Contract Data Extraction

To automate contract data extraction, we will use Lido, a spreadsheet tool designed for efficiency and helps streamline repetitive tasks. You can sign up for a free account at this link: https://www.lido.app/go/signup.

Method 1: PDF Extraction Tool

For this method, we'll use Lido's PDF extraction feature. Ensure your contract is saved as a PDF.

Step 1: Create a New Spreadsheet

Log into your Lido account and navigate to the Files page. Start by creating a new spreadsheet by selecting "New file." This will serve as a base to organize and analyze the data you extract from your contracts.

contract extraction

Step 2: Use the PDF Importer Tool

Open your new spreadsheet and click on the "File" menu at the top. Choose the "Import from PDF" option from the dropdown menu to begin extracting data from your contract PDFs.

contract data extraction

Step 3: Upload Your PDF Contract

Click on "Click to Upload" within the file importer tool and select the PDF contract you want to upload from your computer. Alternatively, you can drag and drop the file directly into the tool.

automated contract data extraction

Step 4: Select and Extract Data

Once the PDF is uploaded, an interface will appear allowing you to select the specific sections of the PDF you wish to extract. Adjust the selection box by dragging its corners to cover all the necessary parts of the document, then click "Extract data" to start the extraction process.

contract extraction meta data

Step 5: Review and Insert Extracted Data

A new window will display the extracted data. Check to ensure all information is correctly extracted and complete.

Each line of text will appear in a separate cell, and sections formatted as tables will be extracted as such.

After verifying the data, click "Insert at active cell." If you need to extract more data or adjust your selection, click "Back" to return and repeat the process.

Method 2: EXTRACTTABLESFROMPDF Formula

An alternative method is to use Lido's custom formula, EXTRACTTABLESFROMPDF, to automate the extraction of tabular data from PDF contracts. Here's how to do it:

Step 1: Upload Your Contract to Google Drive

Sign into your Google Drive and upload the contract you need to extract data from. Make sure the PDF is online and accessible for Lido's use.

Step 2: Create a New Spreadsheet in Lido

Go to the Files page on your Lido account and click the "New file" button at the top right to start a new spreadsheet for organizing the data from your PDF contract.

Step 3: Insert a New Worksheet

Next to your default sheet, click the plus (+) icon at the top left corner to add a new worksheet.

Step 4: Input the EXTRACTTABLESFROMPDF Formula

In the new worksheet, go to cell A1 and type in "=EXTRACTTABLESFROMPDF(".

Step 5: Link Your Google Drive to Lido

Press the "Add Credential" button then "Connect to Google Drive" to link your Google Drive with Lido. Follow the on-screen instructions to complete the setup.

Step 6: Open the File Dialog

With your account linked, press the comma key to move to the next section of the formula. Then, click "Select a file" to open the file selector.

Step 7: Select the Uploaded PDF Contract

Navigate through Google Drive and select the PDF contract you uploaded earlier. This links your PDF directly to the formula.

Step 8: Complete the Formula

Complete the formula by typing ",Sheet1!B2)" to specify that the extracted data should start at cell B2 in Sheet1. Press ENTER to apply the formula.

Step 9: Run the Formula for Extraction

Right-click on the menu in cell A1 and choose "Run action" from the context menu. This action initiates the formula, extracting table data from your PDF contract into the spreadsheet.

Step 10: Verify the Extracted Contract Data

Go to Sheet1 to review the extracted data. Confirm that the tables have been precisely extracted and accurately reflect the contract content. Note that only tabular data will be extracted.

We hope that you now know how to do contract data extraction efficiently with Lido.