Let’s look at what is a contract in the construction sector. In general, a contract legally binding agreement between two or more parties.
In construction specifically, this usually means the two parties are the main contractor and the subcontractor. It may also be between many other parties including the client and the main contractor, between a supplier and the contractor, or between a supplier and a subcontractor.
Normally, at the start of a construction project, the contract administrator will look through the contract to make sure they understand exactly what is required. An experienced contract administrator is able to identify the advantages and disadvantages of the contract based on the project it relates to.
Prior to the execution of the contract between the parties, the contract administrator’s role would be to review the contract and negotiate the most favourable terms possible for the parties they represent. Virtually all construction contracts require negotiation because of the risk profile each clause in the contract may carry.
What does a Contract Administrator Do?
Broadly speaking, the contract administrator’s role is to see that the clauses in a contract are followed by the party they are representing in a timely and professional manner.
For example, if the contract administrator in construction is dealing with payment matters – so that their parties will be paid the right amount on the due date.
- Managing time extensions
- Processing progress claims
- Overseeing detailed design and shop drawings
- Assisting in the preparation of subcontract packages
- Assisting in drafting the scope of work and procurement schedules
- Issuing variations
- Co-ordinating and attending site meetings and providing technical expertise if required.
In order to administer the contract correctly, the contract administrator in construction must first understand how the contract is put together. Basic and general knowledge of legal terminology is therefore essential.
An experienced contract administrator is able to see at a glance how the contract reflects both the scope of works. And the way the works have been programmed.
If you need an experienced contract administration expert working with you, get in touch with us at North Point Property Group.