What is a common outcome of poor contract management?

The outcome of increased costs and disputes is a significant consequence of poor contract management. When contracts are not effectively managed, it can lead to misunderstandings, misinterpretations, and non-compliance with contract terms. This misalignment may result in unnecessary costs, such as legal fees to resolve disputes and additional expenses incurred from the execution of contractual obligations that were not adequately defined or monitored.

Additionally, poor contract management can lead to delays in project timelines and deliverables, as parties may not adhere to the agreed-upon terms due to a lack of clarity or oversight. These delays can further drive up costs and create disputes between the involved parties, often requiring costly interventions or renegotiations to address any arising issues.

On the contrary, outcomes such as efficiency in resource utilization, enhanced compliance with regulations, and better contract performance metrics are generally associated with effective contract management practices. Proper management ensures that resources are allocated efficiently, compliance frameworks are followed, and performance metrics are accurately tracked and improved over time.