Contract Administration Importance
Your hard work negotiating a contract is wasted if you don't follow up with proper policies and procedures to make sure the contractor abides by your terms. Organizations lose time and money if project managers don't value contract administration.
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Communication
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The basis of contract administration is to keep the lines of communication open among the contractor, the buyer, the end user and any other stakeholders. This is necessary to ensure everyone has a clear understanding of the contract terms and of their rights and obligations.
Quality
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Regularly check the contractor's work against agreed-upon quality standards. This ensures your organization gets the value it expects for its money.
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Deadlines
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Verify that contract milestones are met and that regular deliveries are made within the required turnaround time. This prevents project delays and ensures the smooth flow of operations within your organization.
Cost Savings
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Check contractor invoices carefully against the goods or services received, and against contract pricing. Enforce agreed-upon discounts and ensure your organization is charged only for goods or services actually received.
Risk Management
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Ensure the contractor has the required insurance and bonding in place, and is adhering to all safety protocols and applicable laws. This lowers your risk of damages, injuries and litigation.
Relationship Management
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Provide your contractor with regular feedback on his performance, and timely payment of his invoices. This fosters a long and mutually profitable partnership.
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References
Resources
- Photo Credit contracts image by Leticia Wilson from Fotolia.com
