Contract Management Life Cycle Phases

 Contract Management Life Cycle:

Contract Management Life Cycle Phases : 1. Contract Initiation 2. Contract Drafting 3. Contract Review and Negotiation 4. Contract Execution 5. Contract Administration 6. Contract Performance Management 7. Contract Renewal/Amendment 8. Contract Termination/Expiration 9. Contract Closure Phase 1: Contract Initiation 1. Identify business need 2. Define contract requirements 3. Determine contract type 4. Establish contract scope Phase 2: Contract Drafting 1. Prepare contract template 2. Define terms and conditions 3. Include pricing and payment terms 4. Establish delivery timelines Phase 3: Contract Review and Negotiation 1. Internal review and approval 2. Negotiate terms with counterparty 3. Finalize contract language 4. Obtain necessary approvals Phase 4: Contract Execution 1. Sign contract electronically or physically 2. Obtain counterparty signature 3. Confirm contract commencement 4. Update contract records Phase 5: Contract Administration 1. Store contract documents 2. Track contract obligations 3. Monitor compliance 4. Manage contract changes Phase 6: Contract Performance Management 1. Monitor performance metrics 2. Track deliverables and timelines 3. Identify potential issues 4. Implement corrective actions Phase 7: Contract Renewal/Amendment 1. Review contract terms 2. Assess renewal/amendment needs 3. Negotiate changes 4. Execute amended contrac Phase 8: Contract Termination/Expiration 1. Review termination clauses 2. Provide notice of termination 3. Confirm termination 4. Update contract records Phase 9: Contract Closure 1. Verify contract completion 2. Document lessons learned 3. Evaluate contract performance 4. Archive contract documents Benefits of Effective Contract Management 1. Improved compliance 2. Reduced risk 3. Enhanced relationships 4. Increased efficiency 5. Better decision-making Contract Management Tools 1. Contract management software (e.g., Conga, ContractWorks) 2. Electronic signature tools (e.g., DocuSign, Adobe Sign) 3. Document management systems (e.g., SharePoint, Google Drive) 4. Automation tools (e.g., workflow automation) Here are various types of contracts: 1. Fixed-price contract: Lump sum payment. 2. Time-and-materials contract: Hourly/daily rate. 3. Cost-plus contract: Costs plus markup. Contracts by Industry 1. Construction contract 2. Service contract 3. Sales contract 4. Employment contract 5. Lease contract Master Service Agreement (MSA): A comprehensive contract outlining terms and conditions for future agreements. 1. Scope of work 2. Payment terms 3. Intellectual property rights 4. Confidentiality 5. Dispute resolution 6. Termination clauses Statement of Work (SOW) : A document detailing specific work, timelines, and deliverables. 1. Project overview 2. Objectives 3. Scope of work 4. Timelines 5. Deliverables 6. Acceptance criteria 7. Payment schedule

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