Contract Leakage Definition

Contract leakage, also known as slippage, is the difference between the expected value of a contract and the actual value received. It can occur for a variety of reasons, but is most commonly due to poor execution or unforeseen circumstances.

Contract leakage can have a significant impact on a company’s bottom line, so it is important to avoid it whenever possible. There are a few key things to keep in mind when trying to prevent contract leakage:

1) Make sure that you have a clear and concise definition of the work to be done. This will help ensure that everyone involved knows exactly what is expected and there is no room for misinterpretation.

2) Make sure all parties involved understand the penalties for not meeting their obligations under the contract. This will help to ensure that everyone takes their obligations seriously and works to avoid any potential problems.

3) Have a clear process in place for reporting any potential problems or concerns. This will help to catch any potential issues early on and address them before they cause too much damage.

4) Finally, make sure to review your contracts regularly and update them as needed. This will help to keep them relevant and accurate, and will prevent any surprises down the road.