Contract Lifecycle Management

Contract Lifecycle Management – Background

Contract Lifecycle Management is by definition the management of contracts throughout the lifecycle of a negotiated and documented binding relationship made with, by, or between customers, vendors, partners, or employees.  Contract Lifecycle Management therefor affects each and every aspect of virtually all businesses, organizations, associations, and other parties.  

Comprehensive  Contract Lifecycle Management most effectively begins with the negotiation of the the terms and conditions in contracts – hence, in many situations, the scope of the contract management process actually begins with the creation of a proposal (which in turn, leads to an agreement or contract).  

To establish a solid “meeting of the minds” as a basis for the contract, it is frequently useful to incorporate bits of information developed, shared, or gleaned during the period preceding the actual drafting of an agreement – a period that is commonly associated with marketing and sales operations.  Since critical elements of a sales proposal require detailed knowledge of a prospective (or existing) customer, it could be argued that comprehensive contract lifecycle management actually includes elements of customer relationship management. 

Ensuring compliance with the terms and conditions, as well as documenting any changes that may throughout the existence of the contract. Contract Lifecycle Management can therefor be summarized as the process of systematically and efficiently managing contract creation, execution, and analysis to help ensure the best operational performance throughout the life of a binding agreement between the parties.

Just as the old modicum suggests that “good fences make good neighbors”, so too, it could be said that good contracts and contract lifecycle management makes for effective working relationships between the parties bound thereto (or, at least, as effective as can be realistically possible, depending on the circumstances of the specific contract terms).