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I've recently read an article (http://commitmentmatters.com/2012/10/30/is-contract-administration-important/) saying "Good contract management within a project is critical to its success." I cannot agree more with this statement however I noticed that most of the time Employers and colleagues do not give to Contract Administration/Management the right importance with the consequent negative results. What is your experience?
the contracts department. plays a vital role in the construction industry as it interferes with many other departments in various phases, starting with the tendering phase till the closing of the project.1- Tendering Phase (pre award): the contracts dept reviews the draft contract before the proposals dept. submits its offer to the client inorder to highlight any risks and cost impacts that could be affect the price.2- Post award Phase: For the parts of scope of work that will not be executed by the company and requires special subcontractors/vendors, the Contracts Dept in cooperation with the concerned dept prepare documents in order to send RFQs to the subcontractors and get the best offers then evaluate them technically and commercially before negotiating and awarding the subcontractor with the best offer.Then the Contracts Dept. prepare the subcontract back to back with the prime contract or inaccordance with the company regulations and sign it with the subcontractor.3- Execution Phase (Contracts/Subcontracts Administration): the Contracts dept. administrate the contracts and subcontracts thru the following:a- keep a record for every event thru replying letters recieved from (Client/Subcontractor)and preparing letters.b- verifying all the variation order recieved from subcontractors and submit request for variations to the client.c- prepare and review invoices.d- handling all types of claims.e- maintain hardcopy and soft copy of all the contracts and the relevant correspondences.4- Closing Phase: by assuring that the company/client/subcontractors fulfill all their obligations relevant to their contracts/subcontracts thru the following:a- Closing all NCRsb- settlement of all claims.c- settlement of all variations.d- issuing final invoicee- issuing provisional acceptance certificate.f- issuing final acceptance certificate
In the recent business scenario's Contract Administration plays a vital role in the Organisation. With the profit margins in single digits and contracts being executed at a fast pace, it is utmost important to protect our Companies rights. A good contract administration ensures as a minimum;
