What is Contract Rights

From service management to vendor agreements, contracts take many forms. They establish partnership and accountability between parties and often require considerable negotiation before being finalized. Traditionally, a wide variety of contract types was created to fit the needs of contractors, supplies, and clients. These types vary according to the degree of risk sharing, timing, and responsibilities assumed by the contractor for the costs of performance; and the amount and nature of the profit incentive offered to the contractor for achieving or exceeding specified standards or goals. As we delve into the digital transformation era, various business aspects have been revisited. Innovation, transformation, and change management become major players in all business relations, and they need to be considered in the contracting arena as well. This chapter is discussing various types of traditional contracts specifying the differences of each type and how and when to utilize it. It also describes the pros and cons of each one.