DOI link for ManagementLiaisonandReview
Administrative procedures for monitoring the contract will help to control the risks. Failure to meet the critical service levels may lead to pre-agreed compensation payments. The customer will try to protect itself against the risks that the services contracted for will not be provided adequately, and that the supplier's performance is less good than had been anticipated. The supplier's view of risk allocation is to ensure that it will not be held responsible for any faults which it has not caused. The customer will expect the supplier to give various indemnities and warranties to confirm its levels of commitment. The ideal position for the supplier would be a total exclusion of liability arising from any of its activities under the contract. The remedy for the party suffering loss is in terms of financial compensation or damages for the direct losses which are foreseeable at the time of entering into the contract.