What Is Contract Administration?

Who is responsible for contract administration?

The professionals responsible for a company’s contract administration focus their work on the planning and execution of contracts.

The planning process often includes sourcing potential contracting partners, for example via sending out requests for proposal..

What is needed for a contract to be valid?

Generally a Contract must have the following elements to be valid: A valid and binding agreement. This means there must be a valid offer and there must be acceptance of the offer.

What is the contract process?

A contracting process is a series of tasks and activities, defined differently by each individual company. … A contracting approach is determined based on the situation and contract documents are prepared. This may include specifications, terms and conditions, or requirements.

Can the employer be the contract administrator?

In principle, there is nothing to stop parties agreeing that the contract administrator should be an employee of the client/employer. In theory the employer itself could act as contract administrator but this is unusual and potentially fraught with difficulty.

What is a senior contract administrator?

Primary purpose of the role The Senior Contracts Administrator manages established contracts, including ensuring information integrity, negotiating changes/modifications and monitoring supplier performance to deliver outcomes aligned with stakeholder expectations.

What is contract administrator?

Simply put, Contract Administrators work as a liaison between the construction company and its stakeholders. Their work determines the accuracy, compliance and efficiency of each contract and ensures that the contract terms are adhered to.

What makes a good contract administrator?

To pursue a career as a contract administrator, individuals should understand the high level of accountability and responsibility that typically accompanies the role. … Effective ability to negotiate and execute contracts. Proven management and leadership skills. Exceptional communication skills (oral and written)

What are the stages of contract management?

Here are the seven essential stages of contract management.Planning stage. Before you can implement a process, it’s important to develop a system that will best suit your company’s needs and resources. … Implementation stage. … Pre-contract stage. … Handover stage. … Contract stage. … Pre-renewal stage. … Post-contract stage.

What is contract administration process?

Contract management, sometimes referred to as contract administration, refers to the processes and procedures that companies may implement in order to manage the negotiation, execution, performance, modification and termination of contracts with various parties including customers, vendors, distributors, contractors …

What is the purpose of contract administration?

Contract administration involves the management of risks. Its basic purpose is to monitor performance to ensure the objectives of the contract are met on time and within the intended budget, and also to detect any deficiencies and find a remedy (including suspension or termination of the contract) before it’s too late.

What are the contract responsibilities?

Contractual responsibilities definition is usually listed as part of a contractual job listing. This type of job requires you to sign a contract agreement. The agreement lists the terms and conditions of the job. You will not be allowed to start the job until you have signed the contract.

How do you administer a contract?

Administrative ProcedureBecome familiar with a Statement of Work (SOW). … Develop a contract administration plan based on the complexity of the contract. … Create a checklist of all aspects of the contract to monitor, based on the contract itself and the SOW. … Conduct internal and external pre-performance conferences.More items…

How important is record keeping in contract administration?

It helps to keep record of the reasons behind actions you took, and document the studies and analysis you performed to justify the acquisition. It’s important as well to document any decision you made throughout the negotiation process that drove the final contract execution.

What is the difference between contract administration and contract management?

Contract administration is concerned with the state of the agreement between the two parties in the period before the contract has been finalized. Contract management is focused on the implementation of the contract after it has been finalized.

What are the 7 elements of a contract?

Seven essential elements must be present before a contract is binding: the offer, acceptance, mutual assent (also known as “meeting of the minds”), consideration, capacity, and legality. Contracts are typically in writing and signed to prove all of those elements are present.

Is a contract administrator a good job?

Overall, the most successful Contract Administrators have a strong knowledge of business financial best practices, an understanding of contract law, and possess a strong attention to detail. They must also be skilled communicators and have excellent negotiation skills.

What is contract administrator in construction?

A contract administrator or employer’s agent is required to manage, negotiate, support and execute the contract process. Contract administration formally starts when the building contractor is hired to deliver the building project and associated works.

How do you prepare a contract?

Ten Tips for Making Solid Business Agreements and ContractsGet it in writing. … Keep it simple. … Deal with the right person. … Identify each party correctly. … Spell out all of the details. … Specify payment obligations. … Agree on circumstances that terminate the contract. … Agree on a way to resolve disputes.More items…

What are the 5 essential elements of a contract?

The 5 Elements That Constitute a Binding ContractOffer.Acceptance.Consideration.Mutuality of Obligation.Competency and Capacity.

What does Contract Management include?

Contract management includes negotiating the terms and conditions in contracts and ensuring compliance with the terms and conditions, as well as documenting and agreeing on any changes or amendments that may arise during its implementation or execution.