What is one potential impact of poor contract management?

The option referring to increased costs, project delays, and legal disputes highlights a significant consequence of poor contract management. Effective contract management involves carefully negotiating and monitoring contract terms to ensure compliance and foster positive relationships between parties. When contract management is lacking, it can lead to misunderstandings about obligations, resulting in execution delays as parties may not fulfill their roles as expected or necessary approvals are not obtained in a timely manner.

Additionally, poor documentation or oversight can result in additional costs, such as legal fees from disputes or penalties for non-compliance. These consequences can also strain relationships with vendors or partners, creating an adversarial environment rather than a collaborative one. This reflects how critical effective contract management is in minimizing risks and ensuring that projects are delivered on time and within budget.