Contracts are the cornerstone of any successful project; however, the management of these contracts can be daunting. That’s why contract administration is vital for the smooth completion of a project.
What is contract administration?
Contract administration involves the management of contracts throughout their lifecycle, with the aim of ensuring compliance, risk mitigation and project progression.
When is contract administration needed?
Contract administration is valuable on projects of all scales and scope, but its importance significantly increases when dealing with complex contracts, significant financial investments, strict timelines and critical risk factors.
The role of a contract administrator:
A contract administrator’s duties may include:
- Creation and monitoring of a client brief, budget and strategic project framework.
- Assembly and coordination of a project team and designers.
- Preparing specifications and tender documentation, providing strategic advice, including options for items such as procurement, project phasing and cash flow.
- Obtaining, reviewing and reporting on competitive tenders and contract award.
- Providing technical and procedural advice.
- Certification of payment, variations & project completion and the assessment of reasons for delays.
- Ensuring that agreed specifications are met within agreed budgetary and time parameters.
- The use of intensive quality assurance (QA) systems to assess all documentation and the competence of third parties, limiting commercial risk.
Benefits of effective contract administration:
Effective contract administration offers a multitude of benefits which facilitate a successful project. These include ensured compliance, risk management, improved financial management and budget monitoring, all of which help enhance efficiency.