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Construction Contract Administration- The Path to Effective Management

Those involved in the construction of buildings know too well how things can get out of hand, leaving the owner in the lurch. Time is wasted, money is spent needlessly and the outcome is frustrating for owners. Construction contract administration removes the pain points of contracts and proposals. Building projects are thus brought to fruition in a timely and satisfying manner.

How Measure Manage Measures up

The how and why of building and construction contract administration may seem complex. In reality, though, it is not. It entails a free flow of information to and fro, adhering to contracts and payments, suitably dealing with schedules. Our strength lies in our capacity to administer construction administration services on approval of plans and also during the construction. We take great care to see that good administrative practices and correct contractual procedures are followed. We at Measure Manage provide the best building contract administration services by ensuring that costs are kept down. We also ensure that quality is never compromised and work schedules are profitably optimized. 

The long and short of contract administration:

If all that seems vague and you are still wondering what is contract administration in construction, here’s the simplified version. You do know that contracts are an essential part of the construction business. An incorrect clause or the wrong price can do irreparable harm. Contracts have to be drawn up, executed, sometimes modified or even be terminated. Negotiations may have to be undertaken and proper procedures and processes implemented. That’s where contract administration plays an important role.

What we do at Measure Manage

Our services are comprehensive and we walk with our clients right from conception of plans, through project design and review. Timely inspections throughout the project duration help to ensure that proper techniques are followed. We also ensure that the correct sequence is maintained and the right materials are used. In short, we not only monitor progress, costs, ensure compliance on all fronts but also negotiate disputes that may well arise.

Measure Manage contract administration personnel bring along with them the capabilities to tackle each and every project. They also have the expertise to handle the most complex of issues. By attending contract administration courses and upgrading their skills regularly, our personnel has established a track record that is the envy of many.

The base-point for success

construction contract management Given the role that contract administrators play, it’s obvious that the contract administration process, though not difficult, is lengthy. The primary purpose is to see that the contract is carried out in its entirety and implemented correctly. However, that’s not all- the process must also ensure that all this is done within the stipulated budget. Sometimes, there are defects or deficiencies in the contract and these must be detected. Based on the results and findings, the contract may have to be terminated or suspended before things get out of hand. 

The primary responsibility of carrying out the contract and meeting quality and technical standards lies with the contractor. However, the beneficiary has an equal obligation- that of ensuring timely payments. The contract administrator attempts to ensure that both parties comply.

Contract administration construction is now made easy

No contract, however simple, is without its headaches. These are removed or minimized by combining the different processes of creation, management, and negotiation into a single workflow. Now CRM software, apps, and automated workflows make all of this easy and less time-consuming. Negotiations too are less drawn out because lengthy communication is avoided. Commenting within the documents, highlighting and under-scoring save time and effort. Pricing tables and optional selections allow customers to choose what they want. The legitimacy of deals is also secured by the use of digital certificates. Contracts can be stored digitally and organized accordingly. They are hence easy to locate when needed. 

Working as a team is now simplified with automatic reminders and a simple approval process. Forgotten and unsigned contracts are a thing of the past. Today, the Contract administration process in construction is no longer laborious and tedious- it’s a breeze.

Effective contract administration- the key to success

Not all contracts are the same- some are more complex, some involve more risk, some are high-value. Hence, they all can’t be tarred with the same brush. This is where checklists come in very handy. After all, don’t we create checklists to keep track of what we’re doing and what we’ve done? Well, a construction contract administration checklist helps administrators to keep track of contracts, review and revise them if need be. In essence, the purpose of these checklists is to ensure the project is going on the right track while ensuring schedule compliance. An effective contract administration process in construction and active management of contracts help lower operational costs. It also increases service delivery efficiency and contributes greatly to overall satisfaction. 

We at Measure Manage use such checklists to find out where the loopholes lie and where problems are likely to surface. It allows our construction contract administrators to get more information about the project. They can review changes that have been made and monitor administration activities. They also ensure that all documents are signed and the payments are certified. 

The keys to successful contract administration

Contract administrators are overwhelmed with numerous jobs and are challenged when it comes to creating and drafting contracts. Checklists do help to keep them on track but it’s still easy to make a slip. To streamline contract administration, administrators must follow contract administration best practices. Regardless of the number of contracts or the size of each, there are always deadlines and details to monitor. It is very important to organize documents so that anyone can locate them. Setting up automated alerts as reminders is a good way to always keep in touch and be notified. Using smart tools reduces risk, accelerates automation and help construction administrators to do their jobs effectively.

Measure Manage works hard and tirelessly on behalf of construction companies to make contracts successful and meaningful. Be it the administration of construction contracts or effectively dealing with contract administration in construction, our teams are the best. We possess the flair and the expertise to help companies administer and execute contracts successfully.

Frequently Asked Questions (FAQS)

What is a Contract?

A contract is a set of agreed-on rules, or clauses, that legally bind a set of parties together to achieve the goal of the contract. In construction, a contract is commonly between the main contractor and a subcontractor. For instance, the main contractor building for a client may require some work to be completed by a subcontractor, such as the plumbing. So, in order for the main contractor and the plumber to know what is expected in the course of completing the work, the parties have to agree on a set of rules or clauses to govern them.

What is Contract Administration?

Contract Administration is the task of applying those agreed on rules, throughout the duration of the contract. Basically, certain items of the contract need to be completed for the contract to work properly within the agreed rules or clauses. Such as, compiling all the information to get paid by a certain date, or applying agreed rules or clauses around additional work to be completed, called a variation to the contract.

What is Contract Management and Managers?

Contract Management is an individual who manages more than one contract at a time, or maybe manages a team of Contract Administrators. Many construction companies and subcontractors will have multiple contracts on each project with some companies also handling multiple projects. This could lead to hundreds of unique contracts that will need to be administered to the strict rules and clauses within each of them.

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