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identify at least two challenges faced by organizations with respect to developing an effective contract

identify at least two challenges faced by organizations with respect to developing an effective contract

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Answer #1

There are many challenges faced in developing an effective contract like poor communication, Level of involvement, Unclear responsibilities in supplier duties, undefined handover process etc., But we are going to see two major challenge faced by the organizations with respect to developing an effective contract

  1. Being unaware of hidden risks
  2. Cost and Scope creep

Being unaware of hidden risk - Will also include the risk mitigation plan and what are all the hidden risk associated with the contract. That is why the help of an advocate is required at the contract finalization stage to cover all the potential risk factors and plan for the contingency suitably.

Cost and Scope creep: This is the other major factor where there would always be a dispute at the later stage of the contract, Scope and cost factor should be concrete and clear and the deliverable should also be mentioned properly. Based on the scope factor only cost factor would vary.

These are the two major challenges faced by the organization with respect to developing an effective contract.

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