what is contract lifecycle management

Contract lifecycle management (CLM) is the proactive, methodical management of a contract from initiation through award, compliance, and renewal. Implementing CLM can lead to significant improvements in cost savings and efficiency. The process of CLM involves tracking and managing every aspect of a contract for its performance, compliance, and renewal/expiry. The stages of the contract lifecycle management process include planning, implementation, pre-contract, handover, contract, pre-renewal, and post-contract. The benefits of CLM include centralizing contract storage, strengthening compliance, and automating the creation, execution, and management of any type of contractual agreement. Effective and proactive CLM is achieved through the use of contract management software, which can lead to significant improvements in cost savings and efficiency. CLM software can help limit organizational liability and improve compliance with legal requirements by automating CLM processes.