What is the main role of governance in contract management?

The main role of governance in contract management is to ensure compliance and decision-making. Effective governance establishes a framework that outlines the rights, responsibilities, and processes that all parties must adhere to throughout the life of the contract. This framework is vital for maintaining accountability and ensuring that contractual obligations are met.

With proper governance, organizations can implement standardized procedures to monitor compliance with terms and conditions, track performance metrics, and manage risks. It fosters a structured environment where decisions can be made efficiently, ensuring that any issues arising during the contract's execution are addressed in a timely manner. In essence, governance plays a critical role in safeguarding the interests of all parties involved, promoting transparency, and facilitating effective communication, which ultimately supports the successful delivery of outcomes as defined in the contract.