Contract management is the process of guiding a business contract from its inception to its signing. A contract is a legally binding agreement between business partners that outlines the rights and duties of each party.
But a contract isn’t something you can simply file and forget about after the dotted line has been signed; that’s where contract management comes into play. Contract management, also called contract lifecycle management (CLM) or contract administration, involves organization, auditing, legal review, and negotiation with stakeholders.
Because the management of contracts can be a time-consuming and complex business process, companies often hire a contract manager and automate the process with contract management software to lighten the load and keep partnerships running smoothly.