What are the differences between “contract management” and “contract administration” ?

In my opinion

Contract management is the process of contracts creation, review and approval  as per company hierarchy and should be handled  by contracts specialist  

Contract administration is the process of contract execution  and should be handled by end user jointly with contracts specialist 

Well, there is no right and wrong answer for your question, but I assume that contract management is more of managing your contract with all its aspects into successful delivery of the project, while contract administration might be referring only to the administration of contract, such as sending notifications, letters, claims, variations, etc.
Just a thought

Contract management is the process by which, the client and the contractor meet their obligations within the contract in order to deliver the objectives set bythe contract.

Whereas the contract administration is to ensure that contract deliverables are fulfilled by the Contractor pursuant to contract terms and conditions.

Effective contract administration enables the project team to anticipate and mitigate risk throughout the project lifecycle, ensuring that the project objectives are delivered.

It is a very tricky question, but very relevant indeed. Contract Management can be described as a sub set of the Universal set Contract Administration. Contract management is the timely execution of the contracted project with in the agreed amount as per tender conditions and specifications. it is the day to day administration of the contract within the set boundary of the contract. But during actual implementation of the project under the agreed contract, so many unforeseen hurdles can happen that impairs the timely execution of the contract resulting cost and time overrun. Such beyond the contractual frontier happenings are called " Force Majeure conditions" that call for Intervention at Strategic Management level. In such situations, very careful re appraisal of the project will be required and sometimes  even the contract has to be renegotiated or even cancelled after meeting the Liquidated damages. Normally a project manager should not trespass into the decision making area of contract administration, but his role is inevitable to support the decision makers for evaluation of various scenarios. A contract administrator need not concentrate on day to day contact administration of an agreed contract.

 

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.

 

Dear Sir

 

This is Fida Hussain from Pakistan, currently working as Contracts Manager with local firm here in Pakistan and have about15 years experience in the field of Contract Management.

 

I am looking for some reasonable job in Contract Management any where in Middle East.

 

I would be grateful if you can refer me to your company or other contacts.

 

regards

Engr. Fida Hussain

The answer isnsimple, contract management is a strtegic concept which cover all pricurement life cycle, preparations, mobilization, deliverables, execution, day to day administration and close out of the project. Where as contract administration ensuring the priject deliverables are met contract requirements.