Effective Construction Contract Administration in Construction is the key to a project’s success. At Measure Manage, our construction contract administrators bring along with them the expertise to tackle any project. We have the experience to handle the most complex of issues.
Here at Measure Manage, we can advertise on all aspects of the tender approach according to the risk profile of the project. Our processes keep track of contracts, and we constantly review and update them if required.
Construction Contract Administration
What Does a Contract Administrator in Construction Do?
Construction contract administration can be found in the following construction sectors:
Construction Contract Administration – Our Process
- Understanding deliverables/time frames/obligations.
- Read/review/formulate/plan/word search/dissect contract.
- Provide a detailed list of clarifications for commercial, scope, and technical departures/clarifications for review with clients.
- Risk profile and how this might affect the pricing strategy.
- The tender proposal will be updated as negotiations progress.
- Meetings with our clients and other parties to discuss and negotiate the contract and scope clarifications.
- Keep the client informed on the progress of the negotiations and advise of any ‘potential sticking points’ for client comment.
- Close out clarifications ready for the final draft of the signed contract with any necessary special conditions.
- Prepare a risk paper for client review before the contract is offered for signing.
- Contract signing once everything has been agreed.
- Understand the contract to manage the contract deliverables throughout the contract.
- Appoint an experienced contracts administrator to manage the contract obligations.
- Ensure that the contract obligations regarding variations, delays, payments are submitted in accordance with the contract requirements.
- Prepare contract letters by using templates.
- Ensure that any contract letters from the main contractor are responded to promptly.
- Set up a correspondence register to track letters and responses through the construction contract administration process.
- Manage deliverables as required under the contract.
- Manage site diaries and record keeping of supervisors to make sure accuracy is maintained.
- Manage verbal communications to ensure records are kept correctly.
- Bring to a close the project on site making sure all defects are managed correctly and completed.
- Send a Practical Completions Notice in accordance with the contract requirements.
- Send final Account letters and meetings to ensure timely payments.
- Arrange meetings to negotiate any additional works and any set off.
- Follow up retention to ensure timely cash flow for our clients. Close out any final claims.
- Final completion for the defect’s liability period.
- Follow up the Final Retention Release.
- Complete a Client Satisfaction Assessment.
What is the Purpose of Contract Administration in Construction?
The purpose of these processes is to ensure the project is being pro-actively managed and in compliance with the contract.
Effective construction contract administration during the construction together with active management of contracts helps to lower the set-off risk and can lower operational costs.
It also increases service delivery efficiency and contributes greatly to overall client satisfaction. 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, out teams are the best. We possess the experience and expertise to help companies administer and execute contracts to a successful conclusion.
What is the Difference Between Contract Administration and Contract Management?
The terms Contract Management and Contract Administrator are often confused with one another, but they actually represent different phases of the overall contracting process.
Frequently Asked Questions (FAQs)
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.
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.
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.