How Does Contract Execution Work?
Definition
Formal signing and activation of contract between buyer and vendor. Contract execution includes final terms negotiation, legal review and approval, signature collection, purchase order issuance, and kickoff scheduling. Digital execution platforms streamline signature collection, reduce delays, and maintain audit trails. Following execution, contracts enter performance monitoring phase where organizations track vendor delivery against committed terms, timelines, and service levels.
Why This Matters
Contract execution marks transition from negotiation to performance monitoring. Execution process—final terms confirmation, legal review, signature collection, purchase order issuance—requires coordination across legal, procurement, and business units. Digital execution platforms streamline signature collection and maintain audit trails. Following execution, organizations must track vendor delivery against committed terms, timelines, and service levels.
Related Terms
Showing semantically related terms from our RFP knowledge graph. Priority connections are highlighted.
Essential Connections
Contract
RFP Fundamentals
Legal agreement between buyer and vendor defining terms, pricing, deliverables, responsibilities, and termination conditions.
Contract Negotiation
Pricing & Total Cost
The process of finalizing terms with the selected vendor including pricing adjustments, SLA modifications, customization scope, payment terms, and exit clauses.
Legal Agreement
RFP Fundamentals
Legally binding contract between parties establishing rights, obligations, and remedies.
Master Service Agreement
RFP Fundamentals
A contract establishing terms and conditions for ongoing vendor relationships including pricing, payment terms, intellectual property rights, liability, termination clauses, and dispute resolution.
Contract Lifecycle
RFP Fundamentals
Contract stages from negotiation through renewal or termination, including execution, performance monitoring, amendments, and closeout.
Vendor Onboarding
Pricing & Total Cost
The structured process of integrating a selected vendor including contract execution, system access provisioning, stakeholder introductions, kickoff meetings, and project plan finalization.
Project Kickoff
Implementation & Deployment
Initial meeting establishing project scope, roles, timeline, communication protocols, and success criteria between vendor and customer teams.
Procurement Process
RFP Fundamentals
The end-to-end process of identifying needs, evaluating vendors, negotiating contracts, and procuring software or services for an organization.
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