Contract Administration involves managing your contracts to make sure you comply with and fulfil the contract conditions. Good Contract Administration ensures customer satisfaction and minimises disputes. Contract Administration formally commences when the building contractor is formally engaged to deliver the building project and associated works.
The Contract Administration phase covers all construction, subcontracting, procurement and installation of engineering services, commissioning, hand over, defects rectification works, and extends to the final financial close of the project.
Contract Administration is undertaken during the construction and delivery phase of a project and the contract is managed by or on behalf of the Principal to the contract.
The Principal is the entity entering into the contract with the building contractor. The purpose of Contract Administration is to:
- Manage the delivery of a capital project and associated work in accordance with the executed contract documents.
- Ensure the contractor fulfils its responsibilities, duties and outcomes in accordance with documented requirements, the contract itself, and statutory requirements.
- Ensure that the building contractor is properly paid for works suitably carried out.