When you open a contract of hundreds of pages for review, sooner or later, you may lose the point of how well-prepared it is. All the key information and errors in your contract may get complicated to proofread.

With Contract Health Score, you can get instant insights into your agreement’s quality and boost your document proofreading skills. Let’s see in detail how Contract Health Score works in Loio.

What is Contract Health Score?

Contract Health Score (CHS) is a calculated index that shows you how well-drafted your contract is on a scale from 0 to 100.

You can always see the Score at hand and track it wherever you’re working on Summary or Table of Contents blocks across our plugin.

Please note that Loio’s Contract Health Score is designed to help you work with legal documents more efficiently and does not assess the legal context of your agreement.

How is CHS calculated?

Contract Health Score is a ratio of Mild and Critical Issues to the number of Key Terms in the contract. Keep in mind that there may be fewer issues associated with one Key Term, which will also affect the final score.

Here is how we highlight the Score in colors and define it:

Score

Color

Below 50%

Red

51-80%

Yellow

81-100%

Green

For sure, the final result of your Contract Health Score can change if you dismiss or fix issues in your contract. Then, your Contract Health Score is automatically recalculated again.

To get a maximum CHS of 100, you will need to clear all matches with issues and have at least one match with a Key Term found. We put such an essential role on Key Terms because they are the building blocks of a contract.

If your agreement doesn’t indicate any parties, definitions, dates, money, contact details, and placeholders, then Loio won’t be able to calculate the Contract Health Score of your document thoroughly.

How to effectively use CHS

Contract Health Score can bring you valuable insights into your document and the reviewing process. When you’re able to see CHS within our add-in, you can quickly move between Loio’s features and double-check each detected issue and key document data.

Also, Contract Health Score is a great tool to measure your success in contract proofreading. The more you edit and correct the needed parts of your contract, the higher your CHS will be, and your reviewing skills will become more accurate.

For more information on Contract Health Score, you can watch this video.

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