Explainer
What is contract lifecycle management (CLM)?
Definition
Contract lifecycle management (CLM) is the process of managing a contract from the initial request through drafting, negotiation, approval, signature, performance and renewal or termination. CLM software automates and records each of these stages in one system.
The 7 stages of the contract lifecycle
- Request. A team member asks for a new contract and supplies the commercial details.
- Drafting. The contract is generated from an approved template or the counterparty’s paper is reviewed.
- Negotiation. Redlines are exchanged and deviations from standard terms are tracked.
- Approval. A manager, Finance or a Director approves according to your sign-off rules.
- Signature. Parties sign, increasingly by electronic signature.
- Obligation management. Deliverables, payment terms and SLAs are monitored during the term.
- Renewal or termination. The owner is alerted before the renewal or notice date and decides what to do.
CLM software vs. contract management software
“Contract management software” traditionally focuses on stages 6 and 7 — storing signed contracts and tracking their dates. “CLM software” covers all seven stages. In practice the categories have converged, and most buyers in Singapore want both: a single place to create contracts and keep track of them afterwards.
What Singapore businesses should look for in CLM
- Templates and approvals that sales, HR, procurement and operations can use without training.
- Built-in e-signature with a complete signing record.
- Role-based access, an audit trail and data hosted in Singapore.
- Implementation measured in weeks, not months.
Compare options with our contract management software Singapore buyer’s guide, or see how ContractMatters covers each stage.