The CLM process includes each step of contracting, from the initial draft to renewal or expiration. Businesses must consider each stage of the contract lifecycle when transitioning from manual contract management to a more advanced CLM approach. Their in-house teams will want a smooth transition from one step to the next to speed up contract execution and mitigate the risk of noncompliance. Contract request and draft: The parties have decided to enter into an agreement, and one party provides the initial draft. Contract review and negotiations: The parties go through several stages of redlining and negotiating the contract provisions. Contract creation and review usually involve several stakeholders, though the complexity of the negotiations depends on the type of transaction and agreement. For example, routine agreements, such as NDAs, require fewer negotiations than complex transactions. Contract approval and execution: Once the parties agree to the contract's wording, they will execute it through an electronic signing method. Contract storage: Each party must store the executed contract for their records in a secure yet accessible location. Contract performance and obligation management: Each party complies with its obligations and monitors the other party’s performance. This stage can last months or years and often requires the ability to quickly find, search, and review contract provisions. Contract reporting and analytics: Businesses benefit from being able to accumulate, filter, analyze, and report on contract data. Contract amendments and joinders: Sometimes, parties negotiate addendums to their contracts or use joinders to include third parties in a previously established agreement. Contract expiration and renewals: Eventually, the parties approach the end of the contract. They may renew their agreement, negotiate a new contract, or choose to part ways.