In the construction industry, it can seem like a project runs seamlessly, but there’s work to be done behind the scenes to keep all the cogs turning at just the right time. This is where contract administration comes in. Contract administration is at the core of any successful build or commercial deal. It ensures that everyone involved adheres to the agreed-upon terms and that nothing falls through the cracks or goes unnoticed.
From handling changes and payments to keeping communication clear and timely, it’s all about keeping things on track. Here, we break down what contract administration really means and why it matters.
Contract administration explained
In simple terms, contract administration refers to the process of managing contracts between all parties involved in a project, including the client or employer and the contractors. A contract administrator is appointed to ensure project integrity from the very beginning of the project right through to completion.
Why is contract administration important?
Contract administration is a crucial part of any construction or commercial deal, as it ensures everything runs smoothly and protects both parties involved.
Here are some of the reasons why contract administration matters:
- Ensures legal and regulatory compliance
- Helps mitigate disputes
- Keeps the delivery of goods, services and payments on schedule
- Provides protection to both parties against breach of contract
- Drives successful project completion and risk mitigation
What’s typically included in a contract administration plan?
A contract administration plan determines all the key aspects of the contract and how it will be managed throughout the duration of the project. It’s important to have a well-structured plan in place to ensure everything runs without a hitch, risks are minimised, and all parties are clear on what is expected of them.
Key elements of a robust contract administration plan include:
- Roles and responsibilities of parties
- Milestones and deliverables throughout the project
- Performance monitoring and procedures to ensure compliance
- Identify communication protocols between stakeholders
- Process for handling potential disputes or misunderstandings
- Auditing and record-keeping procedures
What responsibilities do contract administrators have?
Contract administrators take on a wide range of responsibilities to keep projects running smoothly. They make sure contracts are followed, changes are tracked, payments are approved, and everything stays on schedule. Some of their responsibilities include:
- Drawing up, reviewing and negotiating contracts
- Ensuring everyone complies with the agreed terms
- Keeping everything on track to ensure deadlines and deliverables are met
- Handling any changes to the contract or variations
- Managing disputes
- Ending contracts correctly at the end of the project
- The main liaison between contracting parties
Why choose KEYS Consulting for your contract administration needs
At KEYS Consulting, we recognise the importance of contract administration in your project and strive to bring clarity and structure to everything we do. From drafting and negotiating the contracts to handling disputes and ensuring legal and regulatory compliance, we’re here at every stage to help your project run smoothly.
If you would like to find out more about our contract administration services or would like to discuss your requirements, please get in touch.