Recognizing Contract Risk and Opportunities Essay - 2

Recognizing Contract Risk and Opportunities - Essay Example In contract management process compliance is the most difficult part because the capacity to implement conformity internally (employees) and externally (suppliers) is rigid in the overall management process. In the highly expanding economic world, businesses are frequently under pressure to conform to internal and external aspects. They require negotiating for contracts instead of going to courts to ensure the execution of contracts since they are expensive and involve long process. All the companies are responsible to fulfilling the contracts as failure to comply contributes to the breach of contract in terms of poor performance and organizational alterations. Hence, it is important for organizations to bargain for prevention measures to do away with contract disputes with emphasis on delivery schedule, technical performance and scope of the organization which in the long run will set the organization free from contractual responsibilities. However, most of these businesses lack the critical concepts to monitor and manage the contracts. Hence, the establishment of Upside contract to impose the contractual agreements such as the operational compliance which guarantees that all the enterprise employees adhere to the policies and standards concerning the contract obligations and negotiations. Supplier compliance ensures that the suppliers conform to the terms of the contract including maintenance program and discounts on quantities purchased. Regulatory compliance aims at ensuring that all set out legislations are complied all the business enterprise entering into a contract. In any business traction a contract is a milestone as it depicts the association between the constricting entities state the stipulations and conditions for goods and services. It’s important to note that contracts have many difficulties for a given business including loss of savings, opportunities and liability as result of