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Contract Administration Support and Systems

Contract setup

Addressing contract planning and management issues at the early stages of a project is a form of insurance. The earlier the process starts the better.

Contract Control International (CCI) can assist at either the tender or pre-startup phases by providing guidance and/or assistance with the following:

  • Tender conditions
  • Post tender correspondence
  • Cash flow analysis
  • Planning and programming
  • Staff training
  • Onerous contract conditions
  • “Red flag” clauses
  • Pre-award negotiations
  • Risk evaluation
  • Contract administration
  • Quality assurance systems
  • Clause-by-clause response

Contract administration systems

The contracting environment has become extremely competitive with narrower margins, tighter programmes and more onerous contractual conditions. Recovery of costs under a contract can be severely limited with poor or inadequate contract planning and management.

A good contract administration system will not only ensure better direct financial performance and improved profitability but will also maximise the recovery of losses or damages incurred where the project has suffered delays and other problems.

Such a system should also provide for better substantiation of what occurred, quantify the loss or damage, and minimise exposure to liquidated damages, backcharges and counterclaims.

Notices and documentation

Situations regularly develop on contracts where notices are required to be served or claims need to be made.

Failure to serve notice promptly and effectively in accordance with the contract can result in disentitlement. Also recovery of costs depends on proper and adequate documentation and records. Extensions of time and contractual claims must be properly particularised and substantiated from site records to achieve a favourable result.

System development

CCI can assist with the development of appropriate administrative systems designed to ensure day-to-day tasks required under the contract are met, so that entitlement is preserved, thus maximising the chance of success.

Experience has shown that many project managers do not have the time nor the specialist knowledge to put in place adequate contract administration system.

CCI has the experience to develop practical and workable contract administration systems. CCI's aim is to work as part of the project team and support the project manager on contractual matters wherever necessary.

The quality of a project manager's decisions can often be directly related to the availability of timely information about the project and its status.

CCI's contract management systems can assist with the quality of decision making. They also provide relevant and timely information about the project on an ongoing basis and can often act as an early warning system for potential problems.