Contract Management

The main aim of contract management is to ensure that goods or services are delivered on time, at the agreed cost and to the specified requirements.

Construction Contract Administration (CA)

Process of review, verification and assurance of all aspects of the Bid and Contract Documents. Time, money & quality are the main items which are assured by the Construction Administrator. The Construction Administrator ensures that all members of the Project Team are performing their responsibilities per the requirements of the contract, specifications and drawings (Contract Documents).

Contract Management objectives

  • Applying knowledge, competencies, and skills
  • Defining, planning, scheduling, and controlling
  • Leadership, communicating, and coordinating
  • Starting up and dissolving project teams
  • Balancing requirements, schedule, and resources

A Contract Administrator should

  • Understand the project
  • Understand the project organizations n
  • Play appropriate role within project team

Contract administration tasks

  1. Developing proper and accurate bid and contract documents
  2. Ensuring compliance with contract documents
  3. Ensuring compliance with local applicable laws and regulations
  4. Ensuring quality control by overseeing, inspecting and reviewing sampling and testing of materials and work
  5. Ensuring compliance to time constraints through progress monitoring and control
  6. Administering payments and effecting project cost control.
  7. Negotiating and processing of change orders and other contract modifications in a timely manner (including claims and dispute resolution)
  8. Ensuring proper Project closeout
  9. Promoting good public relations
  10. Setting and maintaining a high professional standard

Performance in Contract Management

• At 30%, this suggests no formal contract management in place.
• Visibility of contracts may be a significant contributing factor to poor performance.
• Spend under management leave significant cost exposure.

Contract Visualisation

  • Contracts tend not to fail due to legal, technical or business expertise
  • Contracts fail due misunderstandings, misinterpretations, accountability,
  • responsibility and failure to accurately describe the contract scope
  • Contract Visualisation helps parties align goals, accountability and
  • processes through charts, graphs, swim lane diagrams, etc.

Reverences :

International Fund for Agricultural Development presentation

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