How can a "conflict of interest" negatively impact contract management?

A conflict of interest can significantly impede the contract management process, primarily by leading to biased decisions and undermining the integrity of procurement. When an individual involved in contract management has personal or financial interests that may conflict with their professional obligations, it can influence their judgment and decision-making.

This bias may result in the selection of vendors or contractors who are not the most qualified or the best value for the project, as the individual might prioritize personal gain over the best interests of their organization. Such actions compromise transparency and fairness, essential principles in procurement processes, potentially leading to a lack of trust from stakeholders and damaging relationships with other vendors and contractors.

Maintaining integrity means ensuring that all procurement activities are conducted impartially and with the utmost professionalism, so managing conflicts of interest is crucial in mitigating risks and securing successful contract outcomes.