The Procurement Glossary » Contract Lifecycle Management (CLM)

Contract Lifecycle Management (CLM)

Contracts & Legal

Also known as: CLM

Definition

The end-to-end management of contracts using software — authoring, negotiation, approval, execution, storage and renewal.

Explanation

CLM systems standardise clauses, speed negotiation with templates and redlining, store contracts in a searchable repository, and surface obligations and expiries. They turn contracts from filed paperwork into a living, enforceable asset.

Example

CLM cuts contract turnaround from weeks to days using a clause library and automated approval routing.

Related terms

• Contract Management — The active administration of contracts through their life — from execution and compliance monitoring to renewal or termination.
• Contract — A legally binding agreement between buyer and supplier setting out what will be supplied, at what price and on what terms.
• Clause Library — A repository of pre-approved standard contract clauses that legal and procurement teams reuse when drafting agreements.
• Electronic Signature (e-Signature) — A legally recognised digital method of signing a document, replacing a handwritten signature.

Frequently Asked Questions

What is Contract Lifecycle Management (CLM)?

The end-to-end management of contracts using software — authoring, negotiation, approval, execution, storage and renewal. CLM systems standardise clauses, speed negotiation with templates and redlining, store contracts in a searchable repository, and surface obligations and expiries. They turn contracts from filed paperwork into a living, enforceable asset.

Can you give an example of Contract Lifecycle Management (CLM)?

CLM cuts contract turnaround from weeks to days using a clause library and automated approval routing.

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