What do 'key performance indicators' (KPIs) evaluate?

Key performance indicators (KPIs) are specific and measurable values that organizations use to evaluate the success of a project or contractual performance against defined objectives. In the context of contract administration, KPIs help assess whether the terms of a contract are being fulfilled effectively. This encompasses various aspects such as quality of deliverables, adherence to timelines, compliance with contractual obligations, and overall value delivered to stakeholders.

By focusing on the success of contractual performance, KPIs serve as benchmarks for evaluating how well a contractor or service provider meets the agreed-upon standards and dimensions of performance. This evaluation provides critical insights that can inform future contract decisions and help in managing relationships between contracting parties.

The other options, while related to different aspects of contract and project management, do not directly pertain to the primary function of KPIs. Instead, they pertain to supplementary areas rather than the core evaluation of contract fulfillment and performance success.