Describe the problems with performance that might be identif

Describe the problems with performance that might be identified when managing contracts. Identify two possible root causes of performance problems. (150–200 words)

Solution

There are problems associated with the performance of the contract. The first problem is associated with the change in valuation of the object under the consideration of the contract after the offer is accepted. Change in value can change, the willingness to perform the contract and it creates problems. The second problem is the performance without meeting the specifications of the delivery of goods and services as mentioned in the contract. For example, a firm purchases raw materials from a supplier, but the raw material quality is very poor and below the specifications. It means that a performance by the supplier is not conducted properly. The third problem is the delay in performance and missing the deadline of the performance. It is against the violation of the guidelines of the contract. So, it is a problem associated with the contract performance.
The first root cause is the lack of clarity upon the contract guidelines and specifications. It leads to confusion and performance problems. The second root cause is that contract being developed and written by only one party and other parties don’t participate. It leads to the performance problem as other parties, may not agree with the some of the clauses of the contract.