What does the 'contract lifecycle' refer to?

The term 'contract lifecycle' encompasses the series of stages a contract undergoes from its initial creation to its eventual closure. This process includes several key phases such as drafting, negotiation, execution, performance management, and finally contract termination or renewal. Understanding this lifecycle is crucial for effective contract administration, as it allows professionals to manage contracts efficiently, ensure compliance with terms, and handle changes or disputes as they arise.

Each stage of the contract lifecycle has specific activities and best practices associated with it, which contribute to the overall success of contract management. For instance, proper initiation ensures that all parties' expectations are aligned, while diligent performance management monitors contract compliance and identifies potential issues before they escalate. Recognizing and mastering these stages is key to optimal contract performance and achieving desired outcomes for all parties involved.