Prompt Chain: Full Contract Review Workflow in 5 Steps
What This Builds
A structured, repeatable 5-step prompt chain that takes any vendor contract from raw document to a complete review package (risk summary, redline recommendations, stakeholder summary, and negotiation prep) in a single Claude session. Instead of doing an unstructured review and hoping you caught everything, you follow a systematic process that consistently produces the same quality output.
This is the difference between "I looked at the contract" and "I completed a structured review with documented risk analysis and negotiation strategy."
Prerequisites
- Claude Pro subscription ($20/month)
- A vendor-supplied contract to review
- Optionally: your organization's standard contract template for comparison
- Cost: $20/month (included in your Claude Pro subscription)
The Concept
A prompt chain is a series of prompts where each one builds on the output of the previous one. Instead of one big "review this contract" request, you move through stages: overview → risk identification → redline recommendations → stakeholder summary → negotiation prep. Each stage sharpens your understanding before the next.
Think of it like a diagnostic checklist that a pilot runs before every flight. Each step is quick, but skipping one creates risk. The chain ensures you never miss a step.
Build It Step by Step
Part 1: Set up the session (one time)
Start a new Claude conversation. Upload the vendor contract. Then set context:
"You are helping me conduct a formal contract review. I am the [buyer/service recipient] for [your organization]. I will walk you through a structured review process in 5 steps. Please confirm you have reviewed the document and are ready to begin Step 1."
What you should see: Claude confirms it has read the contract and summarizes the basic parties and subject matter.
Part 2: The 5-Step Chain
STEP 1: Overview and Structure (2 minutes)
"Step 1: Contract Overview. Provide: (1) parties and their roles, (2) subject matter and scope, (3) contract value and term, (4) contract type (fixed price, T&M, cost-plus, etc.), (5) governing law and jurisdiction."
Purpose: Gets you oriented before diving into risk.
STEP 2: Risk Identification (5–10 minutes)
"Step 2: Risk Assessment. Identify all clauses that pose risk for our organization as the [buyer/client]. For each, state: the clause name and section number, the specific risk it creates, a risk rating (High / Medium / Low), and why it's rated that way."
Purpose: Systematic flag-raising. Every issue is documented with a severity rating.
STEP 3: Redline Recommendations (10–15 minutes)
"Step 3: Redline Recommendations. For each High and Medium risk item identified in Step 2, provide: (1) the current contract language (brief quote), (2) our recommended redline position, (3) alternative language to propose, and (4) our fallback position if the vendor won't accept the primary redline."
Purpose: Turns risk flags into actionable negotiation positions.
STEP 4: Stakeholder Summary (3 minutes)
"Step 4: Stakeholder Summary. Create a brief plain-English summary of this contract and its key issues for a business executive who won't read the full document. Cover: what we're getting, what we're committing to, the top 3 risks, and the recommended next steps. Keep it under one page."
Purpose: Gives you the executive communication you'll need for approval or escalation.
STEP 5: Negotiation Prep (5 minutes)
"Step 5: Negotiation Preparation. Based on our review, create a negotiation strategy document covering: (1) our must-have positions (non-negotiable), (2) our preferred positions (we want this but can negotiate), (3) our trading chips (things we might give up to get something more important), and (4) likely vendor resistance points with suggested responses."
Purpose: You walk into the negotiation with a documented strategy instead of improvising.
Part 3: Export and file the review package
After completing all 5 steps, ask:
"Create a complete contract review package document combining the outputs from all 5 steps. Format it as a professional memo with these sections: 1. Contract Overview, 2. Risk Assessment, 3. Redline Recommendations, 4. Executive Summary, 5. Negotiation Strategy."
Copy the output and paste it into Word. File it with your contract documentation. Send sections to the appropriate stakeholders.
Real Example: IT Services MSA Review
Setup: Vendor sends a 45-page Master Services Agreement for a 3-year IT managed services arrangement at $1.2M annually.
Step 1 output: Parties confirmed, scope is IT helpdesk and infrastructure support, fixed-price monthly retainer, governed by New York law.
Step 2 output: 8 risk items identified: 3 High (one-sided IP clause gives vendor ownership of all enhancements, no SLA remedies beyond service credits capped at 5% of monthly fee, unlimited liability for customer IP infringement), 4 Medium, 1 Low.
Step 3 output: Redline recommendations for each High-risk item. The IP clause gets redlined to grant us ownership of all work product and modifications. The SLA remedies get expanded with a right to terminate for chronic service failures.
Step 4 output: One-page executive summary highlighting the $1.2M annual commitment, the 3-year lock-in with limited termination rights, and the three key issues requiring resolution before signature.
Step 5 output: Negotiation strategy document. Must-haves: IP ownership and SLA termination right. Preferred: lower liability cap and data security commitments. Trading chips: might accept a longer auto-renewal period in exchange for better IP terms.
Time: Full review cycle: 45 minutes from document upload to complete review package.
What to Do When It Breaks
- Claude loses track of context mid-chain → If Claude seems to forget earlier steps, add "Based on our review in Steps 1–3 above..." at the start of later steps to re-anchor context.
- Risk items are generic, not contract-specific → Your Step 2 prompt may need more context. Add: "Focus specifically on clauses I have not seen in our prior contracts. Our standard acceptable risk profile is: [brief description of your norms]."
- Step 3 redline language is too generic → Add after Step 3: "Make each redline specific to the language in THIS contract, not generic alternatives. Reference the exact clause you're modifying."
- Review package is too long for your use case → Ask: "Condense this to a 2-page review memo focused only on the items requiring management decision."
Variations
- Simpler version: Use only Steps 2 and 4 (risk identification + executive summary). Takes 15 minutes and covers 80% of the value.
- Extended version: Add a Step 6: "Draft the redline document, providing the complete modified contract sections in tracked-changes format, ready to send back to the vendor."
What to Do Next
- This week: Run this chain on one contract you're currently reviewing. Compare the output to your normal review process.
- This month: Save the 5 prompts as a template in your notes. Use it for every new vendor contract.
- Advanced: Add your organization's standard playbook positions to a Claude Project (see the Level 4 Claude Projects guide) so Step 3 automatically references your specific approved alternatives rather than generic market language.
Advanced guide for contracts administrator professionals. AI-generated risk analysis and redline recommendations require professional review and legal sign-off before use in actual contract negotiations.