Understanding Construction Contract Administration: A Comprehensive Guide

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A construction contract defines the scope of work and contractual obligations. Common types of construction contracts include the cost-plus contract, the stipulated sum contract/lump sum contract, the integrated project delivery contract, and the design-build contract/design and construction contract. In this blog post, we are going to explore what construction contract administration is and what a contract administrator does. Let’s dive in.

What is Construction Contract Administration?

Construction contract administration in California involves taking steps to plan and execute construction contracts. The construction contract administration process begins before the two parties sign the contract. The key stages of contract administration include:

Contract Planning: In this stage, the project owner works with the contract administrator to define the project scope, objective, and deliverables. The project owner sets a timeline, plans the work (who does what and how to measure success along the way), factors in risks, and drafts the contract.

Contract Negotiation: Once the final draft is ready, it is shared with the contractor, who may suggest some tweaks to ensure their business interests are taken into account.

Contract Execution: After both parties agree on contract terms, they sign on the dotted line. A contract becomes legally enforceable as soon as both parties sign it. Once the contract has been signed, the project owner must notify all the parties to the contract.

What is a Contract Administrator and What Do They Do?

A contract administrator is responsible for preparing, negotiating, and reviewing construction contracts. A construction contract administrator’s duties and responsibilities vary depending on the agreement between the parties.

Some common contract administrator duties and responsibilities include:

➢ Ensuring work is carried out in accordance with the terms of the contract.

➢ Coordinating with and sharing project progress reports with the parties involved.

➢ Ensuring work is commissioned properly.

➢ Supervising and inspecting tasks.

➢ Ensuring project milestones are achieved.

➢ Managing project costs and adjusting the contract sum if necessary.

➢ Maintaining records of site visits, correspondences, site inspections, and payment slips.

➢ Inspecting defects and ensuring that any defects are remedied within the stipulated time frame.

➢ Negotiating contract terms and conditions.

➢ Helping resolve disputes between parties.

What are the Benefits of Hiring a Professional Contract Administrator?

With a professional contract administrator by your side, you can feel confident that your contracts are in good hands.  Not only do you have an experienced negotiator at your fingertips, but you also have a resource that knows the industry and understands the regulations and protocols. This could ultimately save your business both time and money by avoiding costly disputes or contractual issues down the line.

Ultimately, the benefits of hiring a contract administrator cannot be understated; they provide businesses with the security and assurance needed to ensure all contractual agreements are properly managed and fulfilled.

The Swaney Corporation-Crowe Construction, Inc. offers top-notch contract administration services in California. Our expertise enables us to create foolproof construction contracts and manage them effectively. To make an appointment, call (707) 665-9668.  

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