Lack of revenue (project),
Loss of profit,
Loss,
Overspending,
Disputes, and
Liquidation.
OVERSIGHT
The Contract lifecycle has various stages such as strategy stage, formation stage, administration stage and closing out (closure) stage. Each stage poses different challenges to complete the project successfully. Every company has appropriate management to face such challenges according to their vision, mission, and values. Some companies have an internal contract auditing to support the management. However, the fact is that the company faces many challenges such as loss of profit, overspending, economic loss, delay, dispute, damage, and lack of revenue.
One of the main reasons for such challenges is Oversight.
One of the main reasons for such challenges is Oversight. The Oversight can be due to many reasons such as misunderstanding; wrong interpretation; lack of coordination, resources, knowledge, experience, and commitment; working pressure; multitasking; human error and fraud. Generally, the company try to overcome such challenges without realising the root of it. The company may overcome such challenges up to some extent; however, ultimately faces such challenges as the company fails to recognise the real root for the cause. The existence of the Oversight is quite evident from the ever-increasing conflicts and disputes, and sudden economic recession. Thus, identifying and preventing Oversight is vital for the company (Contract Party) to avoid such challenges.
