• By fontaine@antadis.com
• In

What Are the Different Phases or Stages of a Contract

In late 2020, DocuSign conducted a comprehensive survey of contract professionals to collect data for the State of Contract Management report. One of the key findings of this research is a concrete understanding of the five crucial stages of a contract`s life cycle, including the people, processes and tools involved. In this article, we`ll look at an overview of each step, including data on how contracts are managed today and how technology can streamline contracts in the future. It is common – especially in large companies – that the people involved in the performance of a contract are not the same as those who negotiated it. Therefore, in order to ensure that the contract is fulfilled as intended, it is important to ensure a smooth transfer. Instead of assuming that stakeholders have everything they need, it`s helpful to spend time reviewing all the details of the contract and confirming roles, responsibilities, and milestones. The pre-execution phase of contract management includes everything that happens before you actually sign the contract. This includes request and acceptance, when the applicant first requests a contract and summarizes all critical details about the contract goods or services, delivery dates and other milestones, as well as terms and conditions. This could also include the submission of a third-party agreement for review. Our CLM software is designed to help businesses like yours understand and mitigate contractual liability risks. Contact us today for a free demo and enjoy the benefits of Axxerion Contact Lifecycle Management. Of those participants who have not yet migrated to the cloud, 53% plan to do so and 16% are not yet sure of their plans.

Finding these contracts easily is also essential for management workflows, as more than two-thirds of respondents need to find contracts archived daily or weekly. This is the launch phase of the contract that initiates the life cycle of the contract. At this point, both parties who will participate in the contract can express their wishes and what they expect from the contract. It is important that both parties honestly express their expectations, as vague requests could potentially delay the performance of the contract. CLM software automates all phases of contract management from start to finish, helping businesses mitigate legal and financial risks while maximizing compliance with business and regulatory bodies. Once negotiations have been concluded and both parties have reached an agreement, the next step is approval. In large companies that require the manager`s approval or that have audit procedures in place, all approval requirements must be met before the transaction can be concluded. For example, if a company has certain procurement policies in place, they must be followed before contract approval is obtained. In a contract management platform, this is as simple as setting up an approval workflow so that whoever needs to approve the contract receives a notification and can view, edit, and comment on the contract in real time. Contracts are a central element of modern business.

Without them, there would be no commercial partnerships, employment opportunities or exchange of goods and services. Since contracts play such an important role in business today, it is important to understand the 3 steps of contract management in order to streamline the process without losing sight of what is important for the growth of your business. Life cycle. Process. Whatever you call it, effective contract management doesn`t just involve drawing up agreements and signing them – it`s a series of actions that will take you from the early stages of developing holistic processes to dealing with each individual company agreement to the stages of executing contracts to closing them. Explained in the simplest terms, a « contract » is a legally binding agreement between two or more parties that involves the exchange of money, goods, services or promises. As companies strive to do business faster while providing the best services to their customers, contracts will continue to play an important role in every conceivable industry. When using the CLM software, you will see better compliance with the terms of the contract, as the software keeps track and informs you of all relevant delivery dates. .