Best practices for contract administration page 3 of 18. A contract is a written agreement, enforceable by law, between a procuring entity and a supplier, contractor or service provider for the provision of goods, works and services. Have a general understanding about federal contract markets and contract opportunities. Checklists of documents required, time charts and other tools of contracting will be discussed. The following are only the abbreviations used in this manual. All seven of these stages fall under the contract management umbrella, and contract administration doesnt really hit full boil until around step five.
A balanced scorecard involves both, as well as quantitative qualitative measures. The architect serving as a construction administrator observes con. Where procedures are recommended for specific professional tasks, these are intended to represent best practice, i. Purpose of the contract management plan this section should address the purpose of the contract management plan as it directly relates to the project or program. Aug, 2019 contract management is the process of managing contract creation, execution, and analysis to maximize operational and financial performance at an organization, all while reducing financial risk. Contract administration procedure office of the university secretariat. Monitoring contract performance is a key function in the contract administration process to make sure that all involved parties are performing their duties in accordance with the contract. It is the obligation of the ca to report information, provide documentation, and ensure that the contracts are efficiently carried out.
When a contract is assigned for administration under subpart 42. The administration phase begins with the award of the contract. Timely and reliable planning and forecasting ensures successful and legal acquisition of cdcs services, supplies, materials, equipment, and. Mason, cdm, 2516902190 is the primary support for the following offices. The principles in this guide could be applied to all contracts, from a simple order, through. Contract management and administration for contract and project management professionals by joseph j. The guide provides a framework that agencies must use to make and record contract administration decisions over the life of the contract. Major contract changes are defined as changes to the. In creating a contract, a sevenstep process kicks off. Construction contract management and administration. The term contract manager may also mean contract administrator, dependent upon the organizational structure.
The cmp is critical to effective program execution in the areas of. Emphasis should be placed on planning and researching the requirements of the goods or services to be provided. City have an effective contract management process to help consistently administer the daytoday oversight and ensure receipt of quality goods and services at competitive costs. This communication process can be a useful tool that helps government and contractor achieve a clear and mutual understanding of the contract requirements. A contract manager may be employed to oversee the contract, and their role begins as soon as talk of a contract. Most of the focus is placed on the procurement process. The purpose of this contract management handbook handbook is to offer contract managers, purchasing personnel and other administrators at university of texas institutions recommendations on documenting existing contract management.
Contract management procurement guidance world bank. Understand prime contracting and subcontracting assistance programs and how they can be used to take advantage of federal contract opportunities. Pdf contract management guide contract management guide. Part 42 contract administration and audit services. April 27, 2020 purpose the construction contract admini stration manual has been updated to comply with administrative. Initiating department completes two copies of appropriate liu contract template or contract drafted by vendor. A contract administrator or employers agent is required to manage, negotiate, support and execute the contract process. The contracting process understanding the acquisition process acquisition cycle our professional staff is dedicated to delivering quality and responsive service.
Processing contract changes supplemental agreements. Contract management is the process of managing contract creation, execution, and analysis to maximize operational and financial performance at an organization, all while reducing. The process can range from a simple listing of risks on an i nformal, intuitive basis to a formal process. The following are best practices for contract management. Contract administration planning, establishment and. Contract administration procedures procedures are subject to change without notice. Effective contract management is essential to the delivery of the intended outcomes. Delegates will therefore gain an understanding of the entire process of contract management and administration, from the initiation of the project to its completion and taking over. Flying by the seat of your pants does not work for managing contracts.
The aim is to meet the operational, functional and business objectives required by the contract and provide a profitable interaction. The bank has other guidance in place to support borrowers in the pre contract award processes. Contracts administration office of budget and finance. Wastate contract management manual 6 c championa champion is the person who cheers on the project by providing some level of executive support. Contract management program powerpoint presentation. Twentythree percent of the state central procurement offices participating in the 2018 naspo survey of state procurement practices record and track. Good contract administration is crucial to the success of the public contracting process, because it is during this stage that a significant amount of waste and abuse of public funds and corruption in public contracting happens. Contract management and administration for contract and. A key factor in successful contract administration is communication. Contracts administration office of budget and finance the. Contract management and administration an overview state. This paper explains the 12 best practices in contract management. Contract administration basics the procurement classroom.
The office of contracts administration oca upholds the educational and research missions of ut dallas through expedient facilitation and execution of business contracts, while maintaining protection of the university and ensuring compliance with all applicable laws, policies, and procedures. Contract changes will be processed by either major or minor contract change processes. The cor does not have the authority to make any material changes to the contract. Contract administration rics practice standards, uk 1st edition, guidance note contract administration 1st edition, guidance note this guidance note aims to provide practical guidance to rics members in england and wales who undertake the role of contract administrator. Contract management, sometimes referred to as contract administration, refers to the processes and procedures that companies may implement in order to manage the negotiation, execution, performance, modification and termination of contracts.
Standard contract administration process long island university. Dbb contract administration is based on the administration of the design consultants, and their. Contract administration patrick mays, aia as construction administrators, architects interpret construction contract documents, track the progress of the work, and reconcile the sometimes conflicting interests of owners and builders. During this phase, it is critical that work is conducted in accordance with the statement of work sow and is monitored by the contracting officers representative cor for technical compliance. Be able to generate a record of documents required for project contract administration and project file. Excerpt from the architect s contract administration. These procedures do not apply to employment contracts, labour agreements, research.
Contract administrator a person employed by an agency that is obligated with ensuring that the requirements of the contract are completed in a satisfactory manner to the endusers. The office of contracts administration oca upholds the educational and research missions of ut dallas through expedient facilitation and execution of business contracts, while maintaining protection. Its members are national associations of consulting engineers the most widely used standard conditions for the construction contract used by world bank, ebrd, eib construction administration. See pages 2 and 10 of the guide for contract management. March 2007 contract administration manual samdm 111011 211 this printed copy is for information only. Teamwork is the keystone to achieve timely contract awards. Proposal process contract negotiation or modification process maintenance process closeout process preaward revisions c. This is an important stage in the contract administration process. The following documents must be completed, where applicable, to create the contract packet. The team conducted interviews with contracting officials in the major departments and agencies and the private sector to gather best practices or tricksofthetrade that could be applicable on a governmentwide basis. Change control process a change control process includes the contract terms and agency policies and procedures to change an existing contract. Contract management plan template optional contract. Nov 21, 2018 in creating a contract, a sevenstep process kicks off.
The controlled version resides on the sam contract administration website. A contract manager may be employed to oversee the contract, and their role begins as soon as talk of a contract begins. A contract administration team has been established to plan and carry out this project. The purpose should include the value or benefits, intended audience, and the uses of the cmp. Be able to administer the contract from post contract to completion stage. Check the capital project delivery web site to ensure this is the current version. Government contracting 101 small business administration. Construction contract administration manual ccam effective date. The contract management manual must highlight the most immediate and critical actions that must be taken by the contract director and relevant team members while administering the contract. Merely signing a contract isnt sufficient for any commercial deal of importance whether that be due to value or risk.
Contract management handbook texas tech university. The key objectives of contract management are to ensure that the contract is. The federal contracting process is made up of six key phases and begins with planning and forecasting acquisition needs and ends with administering the awarded contract. The office is divided into sections that research and promote innovative construction and contracting methods, administer contract bids and. Borrowers may wish to consider applying a balanced scorecard approach as part of their contract management plan. Contract administration is assigned to each department where they are responsible for preparing detailed documentation, initiating procurement of goods or services, and monitoring of vendors performance and payment. Contract management is part of the procurement process. Purpose the purpose of this guidance on contract management. Understand sas certification programs the 8a usiness development and huzone programs. Contract administration process is the development of the specifications. Contract administration basics contract administration. It supports the entire customer and contract lifecycle which covers any process that contributes. Throughout the audits performed, we found two primary factors that contributed to inconsistencies and lax oversight of city contracts.
Practice guidance is to support borrowers guidance. Contract management is a multidisciplined process which encompasses technical, business, and procurement perspectives. This guidance assists borrowers in managing contracts post contract award under ipf operations. The process that begins from when the contract is awarded to when the work is completed and accepted or the contract terminated. The contract management process is the interaction between the vendor and the purchaser that ensures that both parties meet their respective obligations in any procurement relationship. Including a completed specification of services, or scope of work. Contract management or contract lifecycle management is the management of contracts from vendors, partners, customers, or employees and at its most basic, contract management software can be defined as an electronic version of a filling cabinet. Early in the procurement process, identify staff to participate in contract monitoring. Often, contract administration is assigned to department employees who. Reduction in manual processes and contract administration workload through process optimisation and automation.
Adec assistant district engineer of construction cms contract management. Draft processes and procedures for contract administration of. Establish and use strong governance arrangements to manage risk and enable strategic oversight. The activities themselves are divided into two distinct but interdependent phases, upstream and downstream of the award of the contract. The management of various facets of a contract to ensure that the contractors total performance is in accordance with the contractual commitments and that obligations to the purchaser are fulfilled. Improvement in business process efficiency throughout workflow. Contract policy corporate processes for contract formation, management and administration cm program process framework visio flowcharting 1. Contract managersadministrators must be part of planning from the beginning of the procurement process. Construction project management is aimed at meeting a clients requirement in order to produce a functionally and financially viable project. Contract modification and adjustment procedures for addressing contractor changes in the terms, price, and scope of the contract. Contract administration, is, the management of the contract between the employer, or client, and the building contractor. Time extensions will be addressed with all contract changes. Process post award subagreement process activate contract process 12. Contract management process key points and activities.
Consolidation of contract database improved contract consistency and user friendliness by leveraging contract template functionality. The contract manager plays a critical part and needs to ensure that all elements and planning tools that will guide the implementation are in. Accordingly, ttus has developed this system contract management handbook handbook, the purpose of which is to comply with the above statutory requirements, and coordinate with regents rules and system component institutions operating policies and procedures. Best practices in contract administration purdue epubs. The cips contract management guide is intended to cover all those activities associated with contract management. Contract management principles the purpose of this. The principles in this guide could be applied to all contracts. An investment in contract management is the only way a contract s benefits can truly be realised and its risks managed.
Contract administration basics contract administration involves all activities related to the monitoring of suppliers, contractors and service providers performance in the fulfillment of their contractual obligations. Chapter 2 contract modifications section 1 general jeffrey a. Construction management or construction project management is the overall planning, coordination, and control of a construction process from beginning to completion. See pages 2 and 10 of the guide for contract management planning for. The aim is to meet the operational, functional and business objectives required by the contract. Standard contract forms fidic europe vs aia usa fidic is the international federation of consulting engineers. Links follow and definitions are found in section i. Improving contract administration practices will help to achieve excellence in contractor performance so that the government receives goods and services on time, and within budget. Check the capital project delivery web site to ensure this is the current. Failure to include all of the requirements in the specifications can lead to a failure in the contract administration process.