The four stages of contract management typically include:
Initiation: This stage involves the initial planning and preparation for the contract. Key activities include defining the objectives, scope, and requirements of the contract, identifying stakeholders, and establishing the contract management system. It is essential to clearly outline the goals, terms, and conditions at this stage.
Execution: In the execution stage, the actual implementation of the contract takes place. This includes the drafting and negotiation of the contract, obtaining necessary approvals, and finalizing all contractual documentation.
Performance and Monitoring: Once the contract is executed, the focus shifts to monitoring and managing performance throughout its duration. This stage involves tracking key performance indicators, ensuring that both parties are meeting their obligations, and addressing any issues or deviations from the agreed-upon terms.
Closure and Renewal: The final stage involves the closure of the contract. This includes formalizing the completion of all contractual obligations, conducting a final review of performance, and ensuring that all deliverables are met. Additionally, if the contract includes renewal options, this stage involves deciding whether to renew the contract, renegotiate terms, or terminate the agreement.
It’s important to note that these stages may vary slightly depending on the specific contract management process or methodology used by an organization.