Contract Management Life Cycle Definition
A contract management life cycle is the process by which a contract is created, negotiated, and executed. It includes the following steps:
1. Contract initiation: This is the first step in the contract management life cycle. The parties involved in the contract identify their needs and objectives, and determine whether a contract is necessary.
2. Contract development: In this stage, the parties involved draft the terms and conditions of the contract. They also negotiate any outstanding issues and reach an agreement on the contract terms.
3. Contract execution: Once the parties have agreed on the contract terms, they sign the contract and begin to perform their obligations under the agreement.
4. Contract monitoring: During this stage, both parties monitor compliance with the contract terms and conditions. They may also make changes or amendments to the contract as necessary.
5. Contract close-out: This is the final stage of the contract management life cycle. Once all contractual obligations have been fulfilled, or if one party decides to terminate the contract early, then thecontract is closed out.
