Contract Administration Activities

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    Identify Organizational Contract Needs

    • Contract administrators are likely to assess, track and identify an organization's need for long term contracts. For example, the administrator may assess the organization's operations and observe that long term contracts are needed for telephones, Internet, shipping or other vital organizational needs. In order to complete this activity, the administrator must have relationships with all of the organization's department heads, as they are in the best position to identify the need for these contracts. Additionally, they are best positioned to opine on plans to end particular service contracts.

    Contract Compliance

    • The contract administrator must ensure that contractors, such as suppliers, meet the contract's requirements. Additionally, the administrator must identify specific targets in delivery, quality, cost or other areas. Once identified, the administrator will have the knowledge necessary for altering the contract, if necessary, to improve operational efficiency. Because of this compliance role, the administrator must have the authority to recommend service provider improvements or the use of different contractors altogether. All contracts must be informed that the administrator's role is to monitor their compliance and that they have the power to recommend changes to the organization's leaders, if necessary.

    Negotiate and Create New Contracts

    • Organizational leaders rely on contract administrators to negotiate and create new contracts. In creating new contracts, the administrator must compare contract bids. Service providers bid to take on projects for the organization. The administrator identifies viable bids and decides which single or group of administrators can best provide that service. The comparison process includes cost, organizational reputation, existing relationship and similar measurements. The administrator may be given the authority to unilaterally choose contractors, or they may be required to obtain the approval of a departmental superior.

    Accommodate Local, State and Federal Regulations

    • In negotiating new contracts or administering existing contracts, the contract administrator must have an understanding of the legal underpinnings of these. People with legal backgrounds, including paralegals and lawyers, are equipped with the legal ramifications of contracts. Part of a contract's legal underpinnings include local, state and federal laws and regulations. The administrator must be equipped to interpret these regulations and apply them to the contracting process. When the administrator requires formal legal advice, they submit requests to the organization's legal counsel. The legal counsel may work in-house or work at a third-party law firm.

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