To improve this situation, which of the following should the firm do FIRST?

A company finds that delays and cost overruns are creating problems in its service contracts.

To improve this situation, which of the following should the firm do FIRST?
A . Renegotiate pricing with current service suppliers
B . Convert cost reimbursable contracts into fixed prices
C . Revise the company’s standard contract template for all of its services
D . Establish progress milestones and monitoring for existing contracts

View Answer

Answer: D

Explanation:

Establishing progress milestones and monitoring allows the company to track performance and address issues promptly, reducing delays and cost overruns. It provides clear checkpoints and accountability in service contracts.

Reference: Effective contract management involves setting measurable milestones to ensure timely and cost-effective project completion.