In: Operations Management
why does the government closely monitor contract performance when the contractor is responsible for satisfactory performance of his/her contract
Contract performance is the contractual obligation for the parties who have been appointed or chosen. The performances are monitored and measured to find out the productivity by two approaches measuring output and measuring outcomes. The government monitors contract performance to analyze that the duties assigned to the contractor is being satisfactory or productive. The contact is considered to be fulfilled when contract output shows customer satisfaction, timeliness, productivity, and performance issues. Every contractor contract performance no matter they are being handled centralized, decentralized or any network model motive belongs to a common objective to achieve that is high-quality service within the assigned cost.
The contract manager needs to report any government authorized employee like project manager, as he is a responsible person for the activities and functions like coordinator, organizer, evaluator, and mediator. Although a contractor is responsible for all the activities still government has to check contract performance to measure the speed of work, reliability, if any changes required, quality of work, the government review performance standards and evaluate methods. Motivates and encourages contractors for any improvement or for good work. Some other reasons for which local government officer reviews contract performance for resolving disputes, payments issue, grievances solution, complains against the contractor, etc.
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