Contract lifecycle management - the 5 phases

One of the most essential elements in working with contract management is understanding the basic processes of the contract. At NSCCM, we operate with 'the 5 phases' of contract management, as defined by WorldCC (former IACCM):

 

 

1. Initiate phase 

Ensuring understanding of markets and their interaction with business needs and goals. Are there solutions ready or is there a need for development and innovation? The customer's needs must also be analyzed from a supplier perspective and the type of relationship to be used to meet the needs must be clarified – for example, whether it should be individual suppliers or a consortium.

 

2. Bid phase 

Exploring the bidding and proposal activities undertaken by each party to determine the extent of the 'fit' between needs and capabilities. The financial and business aspects have been examined and the legal and regulatory elements of tendering and tendering activities have been analysed and managed optimally.

 

3. Development phase

Dedicated to the development of an appropriate form of contract and the considerations and issues that most frequently require attention. The phase provides a platform for a better understanding of the risks and opportunities associated with the specific conditions. At the same time, this provides a basis for planning the negotiations.

 

4. Negotiation phase 

This phase provides an in-depth guide to negotiation of a contract, recognizing that a growing number of negotiations today are 'virtual'. This phase addresses many of the problems and challenges that contract negotiators face today – such as the price-value ratio and explores the choice between relational and transaction-based negotiations.

 

5. The final phase

Examines the approaches needed to ensure successful implementation and management of the signed agreement, just as the phase deals with the management of changes and conflicts. Many contracts are complex and span several years, and often conditions change radically, potentially requiring renegotiations. It is at this stage that the planned targets are actually met – or perhaps even exceeded.

 

Our education, the CCM Practitioner English edition, is designed to enable you to understand and utilize the 5 phases, providing the most important techniques of contract management. NSCCM has found that a lot of contract practitioners are requesting competences and tools to understand and solve day-to-day contract management challenges. At the CCM Practitioner course, you will obtain a thorough insight of the lifecycle of the contract, from sourcing options to contract close out and lessons learned.

 

NSCCM is an official training partner of the WorldCC (former IACCM)

We are one of the few official training partners in the world accredited by WorldCC to offer the internationally recognized certification educations in Contract and Commercial Management. You can read more about our thoughts of contract management and FAQ about our programs and courses.

 

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