Contract performance is defined as:

Contract performance refers to the ongoing process of monitoring how well the terms of a contract are being fulfilled by the parties involved, particularly the supplier. Choice B captures this concept accurately by highlighting the importance of monitoring and reporting supplier delivery, which is a critical component of assessing whether the contractual obligations are being met effectively and on time.

Successful contract performance involves not only ensuring that products or services are delivered as stipulated but also measuring that delivery against predefined standards. This process includes evaluating factors such as timing, quality, and adherence to specifications, hence why monitoring supplier performance is vital. By focusing on these elements, organizations can make informed decisions about continuing, modifying, or terminating contracts based on supplier performance.

The other options, while related to aspects of contract management, do not encapsulate the primary focus of contract performance as effectively. Assessing compliance and evaluating negotiation success involve different stages and considerations within the overall contract lifecycle, rather than the ongoing measurement of how well a contract is being executed. Finalizing contracts relates more to the initial phases of contract management than to the performance during the contract term.