Contract Monitoring and Disbursement Management

Contract management is an area shrouded with mystery in procurement and projects. More often than not organizations have to enter into contracts with third parties. In any case contractual arrangement between the organizations on the other hand and third parties such as customers and vendors on the other hand is a permanent feature in many organizations.

The contracts are complex with a lot of technicalities. There are many challenges along the way. The successful implementation of the projects and hence the organization to a large extent is determined not only by the adherence of contract terms, but also on the extent to which the contract risks are managed throughout the contracting process. No doubt understanding and managing technical and delivery risks inherent in a contractual arrangement is important.

Contract financial management is critical to the success of any organization and its enhanced effectives permeate the entire organization. An area that requires management attention is disbursement of funds and other resources.