What is a potential outcome of not properly managing a contract?

Not properly managing a contract can lead to cost overruns and poor quality deliverables. Effective contract management is crucial for ensuring that the terms and conditions of the contract are adhered to, which includes monitoring performance, managing risks, and maintaining clear communication between the parties involved.

When a contract is not managed effectively, it can result in misunderstandings and lack of oversight, leading to vendors or contractors deviating from the agreed-upon plans, specifications, and timelines. This can cause delays in project completion, increased expenditures beyond the original budget, and the delivery of subpar goods or services that do not meet the required standards. These issues not only affect the immediate project but can also strain relationships between the contracting parties and cause long-term repercussions for future agreements.