Contract administration is often one of the most neglected parts of the procurement process. Good contract administration requires dedication and persistence. The intensity and manner of contract administration will depend on the type of contract involved. Small dollar contracts with short durations or procurements for a one-time purchase may take less administration than those for large dollar projects of a lengthy duration. Contract administration is a critical element in the procurement cycle, and must be carried out in all public purchasing operations.

Contract Administration is a vital part of project execution and an integral part of managing risk. Active administration of the contract is required to provide early notice of problematic issues or events as they occur and ensure a project stays on track.

The well-drafted project contract should contain all necessary information for project execution. Contractual scope of work and price, risk allocation and payment provisions, change order allowances and protocol, project milestones and deliverables should all be contained within the contract. Yet, during the technical work phase, few project personnel will refer to the contract for guidance, ignoring risk management protocols for notices, approvals and other "paperwork", allowing contractual safeguards to go by the wayside. Frequently, this will result in miscommunications- the major cause of disputes and claims.

Compliance with contract obligations enhances professionalism and protects parties from unintentional breach of contract. Attention to contract obligations conveys attention to detail to project partners and ensures the protections negotiated into the contract remain intact. Complying with contract obligations requires little day-to-day management, but has great risk management/risk reduction benefits.

From a risk management standpoint, performance of obligations under the contract is expected to be documented. Failure to fulfill contract obligations can change the enforceability and availability of contract rights, duties, obligations and remedies. Failure to confirm decisions and events in writing also leads to misunderstandings. Performing out of scope or unauthorized work, missing deadlines and failing to document or perform contract administration activities should all be recognized by staff as red flags that affect project performance, liability and risk.

IPMS Administration Tools
We have a resource pool of project administrators and project assistants equipped with latest software solutions in project administration; Primavera Expedition. Through these tools, any concerned party in project to access and retrieve all vital information pertaining to the project progress and future administrative requirements.

Our experts coordinate communications between the project manager and staff, the client and the entire project team, gathering and funneling project information to the project manager and team as well as internal departmental heads in accounting, legal, finance, and risk management. The cost of utilizing a contract administrator and project assistant are usually viewed as legitimate direct project costs of mutual benefit, incurred to improve the efficiency of project management activities.