Advantages
Contract monitoring ensures that the contractor's performance is assessed as per the standards in a contract. In this case, the client, such as the government, can receive what it has ordered. It is also beneficial since it ensures service provision within the identified budget.
Disadvantages
Contract monitoring is a time-consuming procedure and, for this reason, may deny the client time to carry out other essential activities. If contract monitoring is conducted poorly, the contract costs may increase considerably.
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Random Sampling
Advantages
It is a time-saving way of performing quality assurance when the number of service occurrences is high. In this case, it can also reduce the cost of carrying out the monitoring process. The use of the random sample can ensure that the monitoring process's results can be applied to the whole population.
Disadvantages
Random sampling is disadvantageous since its effectiveness is limited to specific contracts, particularly those that measure output. Sampling bias is likely to occur, and in this respect, inaccurate conclusions may be reached.
Periodic Inspection
Advantages
It is highly reliable in carrying out trend analysis. Periodic inspection allows the customer to notice any changes in the contractor’s performance levels effectively. Moreover, it can save time and cash resources since it is used when problem areas are known.
Disadvantages
Selection bias is likely to occur, given that samples are chosen based on subjective reasoning. It is a less effective technique of comparing observed performance and the contractor’s performance.
Customer Input
Advantage
Customer input offers the contractor valuable insights regarding the changes in the contractor’s performance level.
Disadvantage
The process of soliciting customer input may be time-consuming and costly, especially if the customer is inaccessible due to geographical barriers.
