When are guiding principles applicable?

Guiding principles are foundational concepts that apply throughout all phases of the contract life cycle. This includes the initial planning and drafting stages, negotiation, execution, management, and eventually closing the contract. The application of guiding principles ensures consistency, ethical behavior, and adherence to best practices, which are essential at each step.

In the context of contract management, these principles help parties to align their objectives, maintain transparency, foster good relationships, and effectively handle compliance and performance issues. Because contracts are living documents that evolve over time, maintaining a commitment to these guiding principles is critical for successful contract management outcomes from inception to closure.