Contract management, CLM and the Procurement Act 2023: what each one actually means

Contract management is the day-to-day work of running contracts after they are signed. Contract lifecycle management (CLM) covers the whole journey, from first request to renewal or exit. The Procurement Act 2023 sets the rules for how UK public bodies award and report contracts.

What is contract management?

Contract management is the process of administering contracts from signature to completion or renewal. It makes sure each party delivers what was agreed, on time and at the agreed cost, and that risks, changes and disputes are handled properly. In practice that means tracking obligations, monitoring performance against service levels, agreeing changes, checking invoices, reviewing suppliers and deciding whether to renew, renegotiate or exit.

It matters because missed renewal and notice dates can lock in unfavorable terms, and value agreed at the tender stage is often lost during delivery. Auditors and regulators also expect evidence that contracts are controlled.

How to manage contracts well

• Keep every contract in one searchable place, not across shared drives and inboxes

• Name an owner for each contract

• Extract key dates, obligations and values when the contract is signed

• Set reminders well ahead of renewal and notice dates

• Review supplier performance on a fixed schedule and record the results

• Route changes through an approval process and keep a version history

Spreadsheets and email chains make these steps hard to sustain. Ideagen’s policy and contract management solution brings contracts into one place on Microsoft 365 SharePoint, with a central repository, automated notifications and real-time dashboards, so teams can see where each contract stands. People still negotiate terms and judge supplier performance.

What is contract lifecycle management?

Contract lifecycle management (CLM) is the management of a contract through every stage of its life: request, drafting, negotiation and review, approval, signature, delivery, renewal or expiry and archive. Contract management usually refers to the stages after signature. CLM takes in the full journey, including the work done before it.

A sound CLM approach needs a central repository, standard templates and approved clauses, approval workflows based on contract value and risk, electronic signature, renewal tracking and an audit trail. The same system can also hold the policies contracts rely on, such as procurement and anti-bribery policies. Ideagen’s policy and contract management solution covers both on one platform, with workflows for creation, review, approval and renewal management. It supports record keeping and does not replace commercial or legal judgment.

What is the Procurement Act 2023?

The Procurement Act 2023 is the UK law that reforms how public bodies buy goods, services and works. It replaces the Public Contracts Regulations 2015 and related regimes with a single framework. The Act received Royal Assent on October 26, 2023 and came into force on February 24, 2025, for procurements started on or after that date.

It applies to contracting authorities in England, Wales and Northern Ireland, including central government, local authorities, NHS bodies and some utilities. Devolved Scottish authorities are largely outside it, so check the Act and Cabinet Office guidance for which bodies and contracts are in scope.

The Act also requires authorities to have regard to the National Procurement Policy Statement and includes measures to help small and medium-sized enterprises compete.

Why the Act matters for contract management

The Act reaches beyond the buying stage. Public bodies must publish contract details and performance information, set and report on key performance indicators for larger contracts and publish notices for contract changes. Contract management now has to produce reliable data that stands up to challenge.

Public bodies should check which contracts fall under the new rules and which remain under the older regimes, and keep one source of truth for contract data so published figures match internal records. Suppliers should register on the central digital platform and keep their information current.

How the three topics fit together

The Act sets the rules for awarding and reporting contracts. CLM provides the process that follows them, and contract management keeps delivery on track. Its records then feed back into the data the Act requires public bodies to publish.