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The differences between “contract management” and “contract administration” are based on the following roles and responsibilities :
In a “Post Contract” stage of a construction project, i.e. a contract is already in place,
The main roles in Contract Management is to manage and control the implementation of contract which require the following responsibilities :
1) Interpret contract terms and conditions.
2) Evaluate contract change orders and claims.
3) Analyse issues and formulate resolutions
4) Provide advice to Project Management Team.
5) Prepare contractual letters and respond to enquiries and incoming letters raising issues involving matters of concern.
6) Review minutes of meetings and recommend Management’s approval..
7) Confer regularly with higher Management to discuss and adopt strategies worthy to manage and control risks.
8) Participate in cost analysis with the higher Management in relation to budgets, estimated costs and actual costs.
On the other hand,
The main roles in Contract Administration is to monitor contract performance and administer documentations which require the following responsibilities :
1) Organize and implement report system to obtain regular updates of works progress & status of various resources. Based on the updated reports, refer & discuss matters of concern with the Contracts Manager who will recommend measures to the Management to prevent occurrence of delays in project execution.
2) Monitor status of documentations such as outgoing and incoming letters, transmittals, various contract requirements and deliverables.
3) Coordination of various issues involving contract documentations. Follow up approval of documents.
4) Focal point in communications with various departments and other parties in relation to contract implementation.
5) Organize contract review and progress meetings, prepare minutes and distribute approved minutes of meeting. (Review of minutes of meetings and recommendation of Management’s approval is done by Contracts Manager).
6) Establish & maintain contract records and updates records of all correspondence related to contract activities.
Administration and management are synonymous according to the dictionary (hence Master of Business Administration graduates make great managers!). Individuals will use their own bias to define/distinguish the two. For example, contact management may be limited to capturing, recording and updating contact details while contact administration may entail regular communications with each contact by way of newsletters, surveys, questionnaires, etc.
