Last Updated on April 20, 2022 by Admin
For a construction company or a consulting firm that works on behalf of a construction company, a construction contracts administrator performs administrative functions connected to contracts. This role entails a wide range of responsibilities and necessitates an organized individual who can multi-task well.
New ideas will be audited, current proposals will be changed, and contracts will be developed by these administrators. The job also entails maintaining a database to track expiration dates to guarantee that all subcontractors have current insurance and certification.
Thus, computer skills will be required. Contract administrators should also renew items before they expire and write bid packages that comply with rules and regulations; this is typically done with the assistance of a lawyer.
These individuals will evaluate bid insurance needs, have them authorized by the local government, and ensure that all other documents and permits are received before construction. They may also be in charge of reviewing contractor payment requests and/or processing contractor payments. Finally, contract administrators must ensure that all contracts are completed and closed.
Table of Contents
What is Contract Administrator?
The process of drafting a contract between an employer and a contractor is known as contract administration. The process is complete when the contract is agreed upon, and everyone has signed on the dotted line. These documents are designed to safeguard both parties to a contract if something goes wrong or needs to be modified.
A Contract Administrator, also known as a Contract Specialist, is responsible for managing and reviewing business contracts such as firm purchases, leasing agreements, new hire contracts, and business bids.
A contract administrator is in charge of overseeing contracts between construction companies, employers, and clients. Their job is to manage construction contracts, including acting as project managers, engineers, consultants, or client representatives.
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What does a Contract Administrator do?
A contract administrator’s tasks will vary depending on the project type, the building contract, and the professional appointment of the contract administrator, ranging from modest residential projects to huge commercial projects.
In most cases, the contract administrator will have many tasks and duties. These responsibilities and tasks will generally include following the contractual procedure and managing the contract’s day-to-day operations.
The contract administrator’s obligations and tasks will vary depending on the contract between the parties. Upon selecting a Contractor for a project, the contract administrator is assigned to administer the contract between the parties, acting as a representative for the Employer.
However, the contract administrator must behave impartially in all choices made as part of this ‘agency’ responsibility. This is a critical need of the contract administrator function since the capacity to make project decisions fairly and reasonably without demonstrating bias toward any parties is essential for projects to run well.
Importance of Contracts Administration in Construction
The contracts administration process involves different activities as follows, The Contracts Administrator’s entire role is divided into the following phases:
During the design stage
The Contracts Administrator is in charge of keeping costs and schedules under control while working with the customer on established terms. The construction period liquidated ascertain damages deflect responsibility, retention sum, and payment are all key construction risk elements to consider during this phase. All parties involved must be informed of the contract administrator’s responsibilities.
During the construction phase,
The Contract Administrator is responsible for monitoring and controlling cost and time and ensuring that work is completed in accordance with legal requirements, specifications, and the statement of work for quality assurance and control.
The Construction Contract Administrator (CCA) develops, interprets, reviews, and enforces all construction documentation. This includes quality assurance and quality control, bidding and negotiating procedures, construction observation and inspection, Division 01 contracts, which outline the owner’s, contractors’, and architects’/engineers’ responsibilities; General and Supplementary Conditions; all project agreements, and enforcement and liability.
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Duties and responsibilities of Contracts Administrator in construction
Contract administrators are responsible for the following tasks:
- Determine or negotiate contract terms and conditions, award supplier contracts or recommend contract awards, and follow up to ensure execution according to the negotiated terms
- Manage paperwork related to contracts
- Establish delivery schedules, monitor progress, and contact clients and suppliers to resolve problems
- Determine or negotiate contract terms and conditions, award supplier contracts or recommend contract awards, and follow up to ensure execution according to the negotiated terms
- Prepare contracts for sales and purchases
- Create and manage a contracts strategy
- Generate reports on the current status of existing agreements
- Create standardized language for new contracts
- Work with project managers, architects, engineers, owners, and others to ensure project goals are met.
- Examine and report on specific contract risks.
- Ensuring that the work is advancing in accordance with the contract program and that the parties meet the completion date.
- Update the employer on the status of the project.
- Overseeing the commissioning of new work.
- Supervising and inspecting construction projects.
- Managing flaws.
- Determining whether or not to apply for a time extension.
- Taking care of contract pricing modifications.
- Maintaining records. This could involve keeping track of site visits, correspondence, etc.
- Assisting with the certification of works and awarding Practical Completion Certificates.
Skills required to become Contracts Administrator
You’ll normally need these skills to succeed as a contract administrator:
- Strong attention to detail and the ability to spot inconsistencies and errors
- Contract administrators frequently identify critical issues before negotiating a contract, allowing them to draught agreements quickly and spend less time reviewing contracts with each side.
- Ability to work in a team and with a wide range of people at various levels
- Contract administrators construct complicated and developing papers, and each contract requires the participation and collaboration of multiple people.
- Analytical skills ensure that contract administrators are completely aware of the importance of each contract they manage.
- Reading and language comprehension skills
- Contract administrators with strong written and verbal communication skills can better clarify contracts to their employers, ensuring that everyone is on the same page before signing.
- Contract execution and negotiation skills
- Management and leadership abilities
Essential Qualification required for Contracts Administrator
A bachelor’s degree or college credential in business administration, commerce, or economics is normally required to work as a Contracts Administrator. Contract administrators who work on specialized contracts or subcontracts may need a related university degree or college diploma.
Purchasers of industrial items, for example, maybe need to have a bachelor’s degree or a college diploma in engineering. It is advantageous to have prior construction experience. In addition, the following are the special prerequisites for becoming a Contracts Administrator:
- Dealing knowledge of accounting principles
- Experience working with and managing contracts
- Knowledge and comprehension of the legal requirements involved in certain contracts
- Attention to detail and ability to spot errors
- Bachelor’s degree in Business Administration or Finance necessary (Master’s degree desirable)
- 5+ years of experience in contract administration or a similar discipline such as accounting, finance, or legal
Salary Details for Construction Contracts Administrator
In India, the contract administrator’s salary ranges from ₹1.8 Lakhs to ₹ 33.6 Lakhs, with an average annual salary of ₹ 6.5 Lakhs.
The average Contracts Administrator I – Construction salary in the United States is $61,700 as the range typically falls between $56,642 and $68,432
Conclusion
A skilled construction contract administrator must be focused on achieving goals. I am quality-focused and detail-oriented with hands-on experience working on various projects. The function of a contract administrator can offer significant value to a construction project by ensuring that the contract is administered properly and efficiently.
If you meet all of the requirements mentioned above and have some basic experience in building contracts and procurement, this may be the best career path. Selecting an experienced contract administrator and delineating tasks from the start are the keys to a successful contract administrator relationship.
