Contract management is the process that enables both parties to a contract to
meet their obligations in order to deliver the objectives required from the contract.
It also involves building a good working relationship between customer and
provider. It continues throughout the life of a contract and involves managing
proactively to anticipate future needs as well as reacting to situations that arise.
The central aim of contract management is to obtain the services as agreed in the
contract and achieve value for money.This means optimising the efficiency,
effectiveness and economy of the service or relationship described by the contract,
balancing costs against risks and actively managing the customer–provider
relationship. Contract management may also involve aiming for continuous
improvement in performance over the life of the contract.