Professional contract management attempts to ensure that both the buyer and the vendor fulfill all of the obligations agreed in the contract, reduce or mitigate disputes to bear minimum, avoid losses in cost and time and improves long term business relations among the parties involved in the contract.

On the other hand, a poor or non-existent contract management would have bad consequences to all involved with long term losses and sour relations among all involved parties. With no proper monitoring and management of the contracts, the business and financial performance of the organization is most likely to fail to meet its business strategies resulting with cost and time overruns of its projects or business goals.

In spite of the failures of achieving its goals, the long term effects of poor contract management is the deterioration of business relationships with its stakeholders resulting in losing future business aggravating the matters further.

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