Defining a finite period for a contract helps agencies review the outcomes of contracting, such as provider performance and program effectiveness. Contract periods can also be synchronous with the budgeting procedure of the agency with respect to defining the amount to be spent on service provisions. Start and end dates must therefore be specified for a contract to define the validity period of the terms to be honored by the contracting parties. The provider must be approved by the agency in order to deliver the services as per the terms of the contract.