What does the term "performance tracking" refer to in contract management?

Performance tracking in contract management primarily involves assessing the actual outcomes against the agreed terms set forth in the contract. This process enables organizations to ensure that all parties fulfill their obligations and identifies any discrepancies between what was promised and what has been delivered. By closely monitoring performance, contract managers can address issues promptly, facilitate compliance, and make informed decisions about potential changes, renewals, or terminations of contracts.

This focus on outcomes ensures accountability and helps organizations achieve their strategic objectives by verifying that contracts yield the desired results. Thus, it plays a critical role in managing contract effectiveness and efficiency over its lifecycle.