Contracts Management

Contract Administration

What You Need To Know About Contract Administration

Contract Administration

Contract administration involves closely monitoring the contract performance to ensure compliance and fulfillment of the contract conditions. A contract administrator ensures that the end users are satisfied with the product or service being obtained under the contract. This can include all dealings between the parties privy to the contract from the time the contract is awarded until the time the work has been completed and payment finalised.

The specific nature and extent of contract administration varies from contract to contract and the industry the contract encompasses. Contract admin starts with developing clear, concise performance based statements of work, articulating key deliverables and formulating a plan to benchmark contract performance. The role of the contract administrator is to monitor all key areas of the contract, liase with contracts personnel and to ensure the key aspects of the contract get completed in a timely and cost effective manner.

Contract Administration

Important areas of risk are variables that can adversely impact on the performance of the contract. Contract administration involves monitoring these areas of risk and implementing appropriate measures to eliminate or minimize any adverse influence on completion or fulfillment of the contract. While the legal requirements of the contract are often included in the terms of the contract, the exercise of skill and judgment is often required to ensure all interests of the parties privy to the contract are safeguarded and protected.

If contract dispute arises during the performance of the contract the contract administrator must seek cooperative ways to resolve any disputes that may arise during contract performance. Often the process for dispute resolution is articulated in the contract terms which can provide a road map for contract success. Successful contract administration involves a hands on approach to working through any issues under dispute to ensure all vested parties can move forward to complete the terms of the agreement.

A good contract administration process involves implementing a mechanism to secure feedback at the completion of the contract. One way to do this is to obtain input directly from the customers through the use of customer satisfaction surveys. Feedback from these surveys can help identify key areas for performance improvement and serve as a useful basis to design and implement new and improved ways to manage and administer future contracts. Adopting a continual improvement paradigm ensures that future contract performance can benefit from skills and experience which has a positive impact on all contracted parties and helps to improve company bottom lines.

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