What Is Contract Administration? Key Practices and Processes

What Is Contract Administration? Key Practices and Processes

Contract administration is the process of creating a contract between employer and contractor to protect both sides of the agreement in case something goes wrong or needs to be changed. It involves understanding the wants and needs of each party and putting them into a written form that is easy to understand and refer back to. Contract administrators are hired to act as "go-betweens" for project owners, contractors or subcontractors to represent and communicate both of their expectations. A contract administrator is an unbiased mediator who helps ensure communication and good relationships between employer and contractor. They are responsible for managing disputes, providing contract updates, coordinating with different departments, making fair, impartial decisions, analyzing risks, setting quality standards, communicating expectations, and setting meetings.

They are there to make life easier, create a stronger document, and initiate a strong employer/contractor relationship. Contract administrators are responsible for ensuring both parties are happy with the contract they create together, while contract managers deal with contracts during the project. Best practices for contract administration include becoming familiar with the project, preparing for unexpected outcomes, remaining objective, and helping with project management.