What’s the role of contract administration in construction projects?

Construction contract administration

Effective contract administration is pivotal to the smooth implementation and running of any construction project.

It involves managing the procedural aspects of a contract during the delivery of a project. This includes ensuring the flow of required information, submitting notices, valuations and payment evaluations, along with handling claims for extra payment, and extended timescales.

Getting to grips with the risks related to a contract means you can more effectively meet your contractual obligations, so contract administration should be prioritised at an early stage.

If contract administrators are appointed too late in the process, one or more of the parties could already have not complied with various obligations.

Keeping a project on track

Competent contract administrators make sure there are sufficient records to support your position if a dispute occurs.

Compliance with notices and time bars is a particularly onerous issue and a strong contract administrator will keep all parties aware the progress of the project, as well as potential issues that could hinder its smooth delivery.

The role also means liaising with all members of the project team to address any issues promptly and identifying swift and effective resolutions.

Late compliance can delay the delivery of a contract and result in additional costs, potentially leading to claims and disputes. Solid contract administration ensures all parties are familiar with the implications of their commitments, thereby keeping disputes to a minimum.

Steering clear of claims and disputes

If a claim or dispute does occur, maintaining accurate and appropriate records is essential. This is particularly crucial in the construction industry where claims can be technically challenging and involve significant cash sums.

For this reason, a contract administrator should be appointed at the earliest opportunity because competence in this key role can make the difference between a profitable project and a costly failure.

Jones Melling provides a contract administration service on a wide range of building and construction projects. For information get in touch with our team.

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