How Does Contract Lifecycle Work?
Definition
Contract stages from negotiation through renewal or termination, including execution, performance monitoring, amendments, and closeout. The contract lifecycle encompasses initial negotiation, approval workflows, signature collection, obligation tracking, milestone management, change orders, performance reviews, renewal evaluation, and termination or transition planning. Organizations use contract lifecycle management (CLM) systems to automate workflows, track obligations, and ensure compliance throughout the contract duration.
Why This Matters
Contract management extends beyond signing. Obligation tracking, renewal monitoring, amendment management, and performance tracking prevent missed renewals, unauthorized auto-renewals, and obligation failures. Organizations lose millions annually to missed termination windows, unfavorable auto-renewals, and forgotten obligations. Contract lifecycle management ensures you maintain control and leverage throughout the relationship.
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 Management
Software Features & Capabilities
Software managing contract lifecycle from creation through renewal including template libraries, approval workflows, e-signature, obligation tracking, renewal alerts, and repository search.
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.
Vendor Management
Vendor Management & Evaluation
Ongoing relationship management with vendors post-contract, including performance monitoring, contract compliance, issue resolution, and strategic partnership development.
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 Execution
RFP Fundamentals
Formal signing and activation of contract between buyer and vendor.
Procurement Lifecycle
Pricing & Total Cost
The end-to-end process for acquiring software including needs assessment, requirements definition, RFP creation, vendor evaluation, contract negotiation, implementation, and ongoing management.
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.
Legal Agreement
RFP Fundamentals
Legally binding contract between parties establishing rights, obligations, and remedies.
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