Effective Contract Administration

• Published date: 23 December 2021
• Subject Matter: Corporate/Commercial Law, Real Estate and Construction, Contracts and Commercial Law, Construction & Planning
• Law Firm: MMA Law
• Author: MMA Law

Effective management within contracting companies in construction projects has become increasingly more demanding. It can be characterized by great competition, uncertain economic environments, as well as tackling more influential and well-informed employers. For this reason, contractors face intense pressure when it comes to contract administration in order to implement the procedures required to effectively manage the negotiation, the execution, and the adjustments of the construction contract to guarantee a successful project and to satisfy or even exceed the employer's expectations. This is done by a contract administrator (CA); whose work is to ensure the contractor's compliance with the provisions provided in the contract. Essentially, precise contract administration is significant to the effective and efficient functioning of any given construction contract. In this regard, the effective administration of a contract must be prioritised before signing it as opposed to appointing a CA later in the project where the contractor could have already failed to comply with some of its obligations.

The importance of involving an experienced CA during the pre-award phase of a project should not be underestimated. Reviewing the contract and identifying the unexpected risks involved should be the contractor's first line of defence. Extensive review verifies that the contract is well-drafted and enables the contractor to negotiate favourable terms and avoid signing onerous contracts.

During the execution of the project, the CA then begins to pro-actively ensure that management is compliant with its contractual obligations. In addition to being knowledgeable of the contract, the CA should also be...