Contracts for Salesforce uses your organization's business hours set in the Business Hours tab in Salesforce Setup for Cycle Time Reporting. Multiple business hours are supported and you can select which values you want to use when creating a cycle definition.

For more information see Set Business Hours in the Salesforce Help documentation. 

You must have your Business Hours set in Salesforce to use Cycle Time Reporting and create cycle definitions in Contracts for Salesforce.