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What is Contract Monitoring?

Contract monitoring is the process of ensuring that parties comply with the terms of a contract. While there is no universal definition of “contract monitoring,” it is closely related to, or often encapsulated within, the concept of contract management.

The term “contract monitoring” is often encountered with governmental contracts. Over time, the government has come to rely to a greater extent on third-party contractors, rather than employees, to perform work and provide many services. As a result, the government enters into a significant number of contracts with third parties. However, the government also has a responsibility to ensure that taxpayer funds are safeguarded and that services contracted for are properly provided. Thus, the contract is monitored for compliance. State, federal, and local laws sometimes require the governmental agency or entity involved to monitor contracts according to specific guidelines. In other instances, monitoring is left to the discretion of the agency.

The methodology of contract monitoring varies, depending on the specific contract and what is being monitored. For example, some contractual provisions (and their requirements) may be measured against stated performance measures, and through reporting procedures. Other methods could include customer surveys, or even site visits. ContractSafe contract management software simplifies and promotes effective contract monitoring and audits, while providing increased transparency and efficiency.

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