According to Wikipedia

"Standardization is the process of implementing and developing technical standards based on the consensus of different parties that include firms, users, interest groups, standards organizations and governments.[1] Standardization can help maximize compatibility, interoperability, safety, repeatability, or quality. It can also facilitate a normalization of formerly custom processes. In social sciences, including economics,[2] the idea of standardization is close to the solution for a coordination problem, a situation in which all parties can realize mutual gains, but only by making mutually consistent decisions."
Of course it also applies to contracts - just think of the multitude of forms we use in our daily lives at the bank, hospitals and other institutions. The benefits are obvious. 

How to achieve it

Achieving it is not always that simple. Especially when you have a large organisation with a myriad of different contracts, specifications and other standards. Maintaining consistency is difficult if often not impossible, as each contract or project will have deviations or differences with the standard. 
The way to achieve a sensible level of standardization is to decide what is "locked down" in a contract or specification and to comply with standards or in order to uphold the organisation’s governance and risk management policies (for example indemnity, IPR and insurance) and are not able to be modified and what is editable to allow for customization.  Templates should also contain selectable items (options) which need to be selected during tender/contract preparation. This means these options are locked-down but the user can select which option(s) they require. During tender/contract preparation the user is forced to select the required options before the document can be published.
These capabilities are available in iSpec.

What are you waiting for?
iSpec DMS