# Formative evaluation > Formative evaluation means a consistent process of collecting information, generating feedback, and providing improvement suggestions for performance **Term:** Formative evaluation **Last updated:** 2026-07-29 ## Definition ## What Formative evaluation Means in a Contract Formative evaluation, as a contractual concept, refers to a structured, recurring process of collecting performance information, generating feedback, and offering improvement suggestions while a contract or project is still underway. Unlike a one-time final assessment, it is designed to influence outcomes in real time by surfacing problems early and prompting corrective action before they become costly disputes or breaches. Parties typically embed formative evaluation into service agreements, employment contracts, and consultancy engagements where ongoing performance quality matters more than a single delivery milestone. The clause usually specifies who conducts the evaluation, how often it occurs, what data is reviewed, and how feedback is communicated and acted upon. Because formative evaluation is process-oriented rather than outcome-determinative, it is often paired with, but distinct from, summative evaluation clauses that assess final results against agreed benchmarks. The two work together to create a feedback loop that spans the life of the contract. ## How Formative evaluation Is Defined or Measured Contracts define formative evaluation through the frequency of review cycles, the metrics or indicators used, and the format in which feedback is delivered. Common measurement tools include periodic surveys, progress reports, milestone check-ins, and structured review meetings, all of which feed into a documented feedback trail. Many agreements reference a specific document, such as an