Contract administration is the process of creating a contract between employer and contractor. The process ends when the contract is agreed upon and everyone has signed the dotted line. These documents are created to protect both sides of the agreement in case something goes wrong or needs to be changed. Those are the beginning and endpoints of contract administration, but in between, there is lots of work to be done such as planning, estimating and contract bidding. The first step is to understand the wants and needs of each party. This is no simple task, and it involves time and effort. Then, the contract administrator puts these wants, needs, expectations, etc. into a written form that is easy to understand and refer back to. A contract administrator is typically a third party with extensive knowledge of business finance and contract law. A client or someone on the client’s team can sometimes act as the contract administrator, but this is not recommended. When this is the case, contract administration can quickly become one-sided and biased. This can lead to animosity between the owner and the builder. Contract administrators are hired to act as “go-betweens” for project owners, contractors or subcontractors to represent and communicate both of their expectations. These individuals determine the best ways to make both parties happy and even negotiate for each party, if necessary. A contract administrator’s duties vary depending on the contract and the type of construction project. Each contract will have a unique set of demands. The consistent factor is clearly defining the terms of the contract and ensuring communication and good relationships between employer and contractor. While a contract is being created, there may be errors, disputes and miscommunication. It is as to oversee what is happening and produce the best possible version of the contract. But, more often than not, employers and contractors will go back and forth on terms, procurement, pricing and other things until both parties are happy. Having someone dedicated to managing these discussions makes the process run smoother. A few examples of factors a contract administrator will be responsible for are: We make life easier, create a stronger document and initiate a strong employer/contractor relationship. This contract can make or break the project, as a whole. Miscommunication and misunderstandings are leading causes of project failure, and a great contract administrator can prevent this. Contract administration will look different from project to project, as each contract will have different terms, agreements, objectives, etc. Still, there are a few basic rules that apply to all types of contract administration: When all your documents live in one place, you also can refer to project plans, schedules and more as the contract is being written. A project plan, especially, will contain pertinent information to include in the final document. Monitor the progression of your project on our and update contracts accordingly. Project Manager’s real-time dashboards give construction project managers a birds-eye-view of the project’s performance to ensure contractors keep to the terms and conditions of the contracts. With us, you get features that facilitate both contract administration and construction project management. Contract administration is very important across different industries. As long as there are project owners, contractors and subcontractors, you’ll need contracts to manage projects successfully. Here are some examples of commonly used contracts for project management. What is a Contract Administrator?
Our role as the Contract Administrator
Best Practices For Contract Administration
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