Contract Performance Management Definition
According to the National Contract Management Association (NCMA), ‘Contract Performance Management (CPM) is a systematic process for ensuring that contract requirements are met throughout the life of the contract. CPM includes all aspects of contract management, from pre-award activities through closeout.’
In other words, CPM is a proactive and continuous approach to managing contracts that ensures that all contractual obligations are being met by both parties. It involves setting clear expectations for performance, monitoring progress, and taking corrective action as needed.
CPM is an important part of any organization’s overall risk management strategy, as it can help prevent costly disputes and litigation. By proactively managing contract performance, organizations can avoid many of the common problems that lead to disputes, such as scope creep, poor communication, and misunderstanding of contractual terms.
When done correctly, CPM can help improve communication and collaboration between contracting parties, leading to better overall outcomes.
