--- title: "Create a Contract in Contract Lifecycle Management" canonical: "https://support.mercell.com/space/MKB/196280328598/Create%20a%20Contract%20in%20Contract%20Lifecycle%20Management" format: markdown --- [CLM] ## Creating and Managing Contracts This article outlines the process of creating and utilising **contracts**, a powerful feature designed to enhance the findability, traceability, and manageability of your contracts within the Contract Lifecycle Management (CLM) module. --- ### Understanding Contracts A **contract** is an agreement whose content is created dynamically using predefined **contract sections** and **contract clauses**. This differs from simply uploading a static PDF document. The core benefits of using the contracts tool are: - **Enhanced Scope and Findability:** Specific clauses and data points are easily searchable and trackable across the entire organisation. - **Improved Traceability:** Changes and revisions to individual sections are accurately logged. - **Easier Content Management:** Content changes can be managed efficiently across different versions and related agreements. ### Contract Creation A contract is **always** created using a pre-existing **contract template**. The template can be determined in two ways: 1. **Contract Type Template:** The contract is created based on the **contract template** attached to the specific **Contract Type** you intend to use. 2. **Modifying an Existing Contract:** A new contract can be drawn up by modifying and adapting a previously concluded contract, essentially using the old contract as a template. ### Linking Contracts (Main and Sub-Contracts) Contracts allow for clear hierarchical linkage, which is particularly useful for framework arrangements: - **Main Contract:** The contract can be attached to a selected **Contract Folder **(set of contracts), in which case it functions as a **main contract** (e.g., supplier contracts within a framework agreement). - **Sub-Contract:** The contract can also be attached as a **sub-contract** of one of the main contracts (e.g., individual delivery contracts under the main framework agreement). ### How to Create a New Contract 1. Click **New** in the main **Function menu**. 2. Select **Create contract** below it. The creation of a new contract is a multi-stage process. Individual support articles have been created to guide you through each distinct stage. > Macro (children) *Article Ref: 161020251253*