Contract Compliance is state of acting in conformance with the predefined and agreed rules or guidelines. In many countries the contract compliance mainly deals with the adherence regarding equal opportunity policies and regulations. I.e. equal opportunity for employment without regard to age, gender, religion, disability, or national origin.
The industries will have certain regulations from the government regarding the way they perform their activities. The regulations can be regarding equal employment opportunities to all, or rules and standards to be followed to listing a company, or regulations of minimum number of women employees employed etc. The management of such contracts so that the company is adhering to all such regulations is called contract compliance.
For example: in United States, there is a specific official who takes care of the adherence issues called Contract Compliance Officer, whose duties mainly involves investigating formal complaints recommending ways to ensure compliance regarding equal employment opportunities, advising managers of departments in implementing procedures and regulations regarding equal opportunities, liaising with minority groups and public and private organizations for promoting equal opportunity objectives, attending human rights meetings, monitoring and reviewing developments in contracts, preparing instructions and distributing to department managers etc.