Significance of contract management in the context of globalization

A contract strategy that is successful will include not only procurement planing, but also incorporate the contract types that need to be used. Only when a spirit of give and take, mutual trust, and confidence exists between the client and contractor, and both parties strive to meet contractual requirements without trying to take undue advantage of each other, is timely completion of works to stipulated standards possible. Every project - it's location, the participants involved, its scope -will be different. Therefore, the contract strategy must be unique. The contractual system used for a project should not be selected on the basis of tradition, fashion or other non-rational criteria; it must be selected to suit the specific project. Significant improvement in meeting predetermined targets will be achieved by better contract management. This includes identifying, measuring and responding to risks. Contract strategy is an important part of any project where procuring some or all of its good and services is a requirement.