Understanding the contract lifecycle is essential for legal, procurement, and contract management teams aiming to streamline operations. This guide explores the eight key stages of the contract lifecycle and how contract lifecycle management (CLM) software can optimize each phase for better compliance, efficiency, and collaboration.
What Is the Contract Lifecycle?
The contract lifecycle is the structured process through which a contract is requested, created, negotiated, approved, signed, executed, and potentially renewed. It helps compartmentalize complex workflows into manageable stages, ensuring that contracts are handled consistently and strategically.
What Are the 8 Stages of the Contract Lifecycle?
Let’s walk through each stage with clear answers and practical insights.
1. What Happens During Contract Requests?
This is where everything begins. Stakeholders submit requests for new contracts, amendments, or renewals. They outline expectations, key terms, and necessary details. This stage sets the tone for how efficient or delayed the entire process will be.
2. How Is a Contract Authored?
Once the request is approved, the contract is drafted. This involves pulling in standard clauses, counterparty information, dates, and conditions. A well-authored contract lays the foundation for smooth negotiation and future compliance.
3. What Is Contract Negotiation?
Negotiation is where both parties collaborate to finalize terms. Redlining, commenting, and version tracking are common here. Effective negotiation ensures clarity, transparency, and mutual agreement.
4. How Are Contracts Approved?
After negotiation, the contract goes through internal approvals. Depending on the organization, this could involve legal, finance, or executive teams. Audit trails and version control are crucial to maintain accountability.
5. How Are Contracts Signed?
Authorized signatories execute the contract, often using electronic signature tools like IntelliSign®. eSignatures speed up the process and reduce manual errors, while traditional signatures can slow things down.
6. What Are Contract Obligations?
Once signed, the contract enters the execution phase. Parties must fulfill responsibilities, meet milestones, and process payments. Tracking obligations in a centralized CLM system helps prevent missed deadlines and breaches.
7. How Is Contract Compliance Ensured?
Compliance means adhering to legal, regulatory, and internal standards. This stage is critical for avoiding penalties and litigation. Strong compliance practices support long-term contract success.
8. What Happens During Contract Renewals?
Renewals allow parties to continue beneficial relationships without starting from scratch. Terms may be renegotiated or extended. CLM tools simplify this process and help identify contracts nearing expiration.
How Does CLM Software Streamline These Stages?
CobbleStone Contract Insight® helps organizations manage contracts more effectively by offering:
- Centralized dashboards for visibility
- Automated workflows to reduce bottlenecks
- IntelliSign® for secure eSignatures
- Clause merging and version tracking
- AI-powered insights with VISDOM®
Pros of using CLM software include:
- Faster approvals and signatures
- Reduced risk and bottlenecks
- Improved compliance and visibility
This beats the cons of manual processes, which are:
- Time-consuming
- Prone to errors
- Difficult to track and audit
Key Takeaways
- Each stage of the contract lifecycle plays a vital role in contract success.
- CLM software enhances efficiency, compliance, and collaboration.
- Regular updates and audits ensure long-term contract health.
Original Insights from Our Team
CobbleStone’s experts have seen firsthand how fragmented contract processes can slow down business. Clients who’ve adopted CLM software have reported:
- Faster approval times
- Improved compliance tracking
- Greater visibility into contract obligations
These improvements lead to better business outcomes and stronger relationships with vendors and clients.
Streamline the Stages of the Contract Lifecycle With CobbleStone®
Don't waste any more time with disparate contract lifecycle management processes. To streamline the stages of the contract lifecycle and maximize your contract management processes, request your free demo of award-winning CobbleStone Contract Insight® CLM software.
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This blog post was originally published on October 8th, 2018, and updated on October 15th, 2025.
*Legal Disclaimer: This article is not legal advice. The content of this article is for general informational and educational purposes only. The information on this website may not present the most up-to-date legal information. Readers should contact their attorneys for legal advice regarding any particular legal matter.
