The Procurement Glossary » Contract Management

Contract Management

Contracts & Legal

Definition

The active administration of contracts through their life — from execution and compliance monitoring to renewal or termination.

Explanation

Contract management captures value after signature: tracking obligations, prices, SLAs and expiries so entitlements are enforced and renewals aren't missed. Poor contract management is where negotiated savings quietly leak away.

Example

A contract-management system alerts the team 90 days before each expiry so nothing auto-renews unreviewed.

Related terms

• Contract — A legally binding agreement between buyer and supplier setting out what will be supplied, at what price and on what terms.
• Contract Lifecycle Management (CLM) — The end-to-end management of contracts using software — authoring, negotiation, approval, execution, storage and renewal.
• Contract Compliance — The extent to which actual buying follows the prices, terms and preferred suppliers set in contracts.
• Auto-Renewal Clause — A contract term that automatically extends the agreement for a further period unless a party gives notice to cancel by a deadline.

Frequently Asked Questions

What is Contract Management?

The active administration of contracts through their life — from execution and compliance monitoring to renewal or termination. Contract management captures value after signature: tracking obligations, prices, SLAs and expiries so entitlements are enforced and renewals aren't missed. Poor contract management is where negotiated savings quietly leak away.

Can you give an example of Contract Management?

A contract-management system alerts the team 90 days before each expiry so nothing auto-renews unreviewed.

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