Contract Management Lifecycle Definition
Contract management is the process of creating, executing, and maintaining contracts. It includes all aspects of contract lifecycle management, from identifying potential contracts to negotiating and signing them, to managing post-contractual obligations.
The contract management lifecycle is the complete sequence of events that takes place from the initiation of a contract to its completion. It can be divided into four distinct phases:
1) Contract initiation: This is the phase in which a contract is first created. It usually begins with the identification of a need or opportunity, followed by the development of specifications for the desired goods or services. A request for proposal (RFP) may then be issued to potential suppliers.
2) Contract negotiation and execution: This phase involves negotiating the terms of the contract with the chosen supplier. Once both parties have agreed on the terms, the contract is signed and executed.
3) Contract performance: This is the phase in which the contracted goods or services are delivered. The supplier must meet all requirements specified in the contract, and the buyer must make payments according to the agreed-upon schedule.
4) Contract closeout: This is the final phase of the contract lifecycle. It involves ensuring that all obligations under the contract have been fulfilled and that all required documentation has been collected. Once both parties are satisfied that everything has been completed as agreed, the contract can be officially closed out.
