August 2017


Contract Management and Administration refers to the process and the contractual obligations parties have been agreed on in order to deliver the objectives as provided in the contract. These objectives can relate to qualitative technical requirements and timely delivery of the works either completely or in sections. Contract Management and Administration is important for all parties involved in the Contract since changes to the agreed contact might have an effect on the costs, the duration to complete or the quality assurance of the project. Part of Contract Management is also to detect inconsistencies, discrepancies and ambiguities.


In practice this means that Contract Management and Administration is carried out closely with all other disciplines involved through the entire duration of the Contract. The principal task is to ensure that all disciplines and other parties meet the contractual obligations or changes on the requirements are identified, notified and agreed upon.

Benefits of investing in contract management capability

The reality in Construction projects is that too often projects are suffering from cost overruns and late completion. Numerous reasons can be found for these costs overruns and delays on these projects. However if the Contract has been prepared carefully and management accordingly it should surely not lead to surprises during the execution of the Project.It is inevitable that there are changes in complicated projects, like in the construction industry.  With the contract as basis the Contract Manager or Contract Administrator will be able to identify and notify the relevant parties on time.


Parties on either the Employer or Contractor side will benefit if they establish Contract Management capability in their project team. This does not always mean that full time positions are required.