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Contract Administration

Contract administration, or contract management, is the process of managing and organising the tasks needed to be done during construction. This is done through the cooperation of all parties involved during the construction such as homeowners, builders, contractors and suppliers.

After signing the contract and securing necessary permits and certificates, Contract Administration also starts simultaneously with the construction phase. This also applies throughout the whole construction process.

Looking at your contract does not stop at contract review. You still need to go back to your contract at times to ensure that the construction project is on track.

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Who should practice Contract administration?

All parties involved in the construction phase should be involved in contract administration. This would ensure that everybody is on the same page while carrying out their respective work. It would also make monitoring the work progress and payment schedules faster and organized too.

To help manage this,  the principal contractor could appoint a designated contract administrator to help organize workflows during construction. They could be also the point person to ensure that everyone follows the contract.

Tasks in Contract Administration

Doing contract administration work revolves with the following tasks but not limited to:

This task starts with selecting your suppliers for your needed material help negotiate if necessary.  It also includes making sure that the delivery of supplies and equipment to the construction site is right on time.

Through the construction phase, it is important to go back to the agreed time frame. You get to see if the builder and contractor are carrying out work as scheduled.

Also, if construction delays are affecting your overall progress, then you would have to talk to the contractor responsible.

Having an organised payment schedule can help you pay your builder and your contractors on time. Keeping track which payment claims have you paid and you are about to pay can help you keep your budget in check.

In case a payment or building dispute arises during construction, going back to the contract can help solve the problem. Else, contract administrators would have to step to talk with the concerned parties before things can go worse.

Best Practices in Contract Administration

In doing contract administration, take note of these tasks that can add to overall success:

Know your rights and obligations stated in the contract. A construction contract contains the specifics of the building projects including the costs, technical specifications and other important things.

Talk to everyone involved. Clear out any misunderstandings that can occur. It is better to talk through these problems during construction before it can escalate to building dispute.  

Always keep a copy of every document involved in the building project. Remember to also organize your timeframes, invoices, quotes, and etc. for easy access to everyone involved. These things can also serve as your legal proof you can show to your lawyers in case of a building dispute or any other future issue.

Importance of Contract Administration

How a homeowner handles contract administration tasks can determine the success of a building project. If you get to organize your work, then it would be less stressful to keep construction work on schedule.

It can also help foster good business relationships if there is good communication with everyone involved. Else, a building dispute can happen because of possible misunderstandings. To avoid this, talk with a little bit of empathy and always bring supporting documents when airing concerns if necessary.

Most importantly, it will make sure that your house will turn out as you have imagined it. Doing contract administration will ensure that the builder and contractors’ work will happen in accordance with what the contract says.

So that with a good contract and an organized work that abides with it, the results would be surely satisfying.

Contracts Specialist and Contract Administration

Contracts Specialist can guide you in handling contract administration tasks. We can help you look over your contract during the construction phase. You can even get to understand your legal rights and obligations in the building project.

We can also help in mediating talks with the other involved parties in construction. So that, we can resolve things faster and avoid a building dispute.

Call us and book your first free consultation now.

Contract Administration
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Contract Administration