What can be a consequence of improper contract management?

Improper contract management can lead to significant negative outcomes, making the third option the most accurate choice. When contracts are not managed correctly, it opens the door to various issues, including misunderstandings, unmet deliverables, or failure to adhere to contractual terms. This mismanagement can result in litigation due to disagreements or perceived breaches. Additionally, improper oversight may lead to financial losses for the involved parties, as unaddressed issues can escalate, requiring costly resolutions. Furthermore, the risk of contract disputes grows, complicating relationships between stakeholders and potentially damaging reputations.

In contrast, increased competition for contracts is typically seen as a benefit rather than a consequence of poor management, as competition helps drive better pricing and innovation within the procurement process. Reduced contractor engagement is more indicative of a lack of trust or communication, which can be a result of poor contract management, but it does not encompass the full range of severe outcomes linked to improper practices. Lastly, enhanced contract performance evaluation usually stems from effective contract management, emphasizing compliance and accountability, rather than from mismanagement which often hinders performance assessments.