Contract lifecycle management is the coordinated handling of contracts from request and drafting through review, approval, signature, storage, obligation tracking, amendment, renewal, and closeout. CLM connects commercial and legal records with sourcing, supplier, purchase-order, and invoice context. Exact responsibilities and approvals differ by organization, contract type, risk, and governing policy.
In plain English
It manages a contract from its initial need through its active life and eventual closure.
Illustrative example
At Northstar Industrial Systems, a maintenance agreement moves through legal review, approval, signature, renewal alerts, obligation tracking, and a documented closeout decision.
- Related terms
- Contract repository; Contract compliance; Obligation tracking; eSignature
- Lifecycle stages
- Source; Approve; Execute; Govern
- Stakeholders
- Procurement; Compliance and Legal; Finance; Supplier