Contract administration often gets a bad rap. It’s seen as tedious, bureaucratic, and something that can be easily overlooked. But, the truth is that contract administration is essential to the success of any construction project. It’s the glue that holds everything together, ensuring everyone is on the same page and working towards the same goal.
What is Contract Administration? Contract administration is the process of overseeing and managing construction contracts. It includes reviewing and approving submittals, issuing change orders, and certifying payments. Contract administration ensures the project is completed on time, within budget, and to the required standards.
Why is Contract Administration Important? Effective contract administration is critical for several reasons. It helps to:
- Maintain project integrity
- Resolve issues quickly and efficiently
- Manage changes effectively
- Ensure that payments are made on time
- Reduce the risk of disputes
Who is Responsible for Contract Administration? The architect or the civil engineering firm is typically responsible for contract administration. However, other project team members, such as the owner and the contractor, also play a role.
Contract Administration During the Construction Phase: Contract administration is especially important during the construction phase. This is when most of the work is being done, and most issues will likely arise. During the construction phase, the architect is responsible for:
- Reviewing and approving submittals
- Issuing change orders
- Certifying payments
- Conducting site visits
- Resolving disputes
How to Get Your Team Up to Speed on Contract Administration: Getting your team up to speed on contract administration before construction begins is important. This will help to ensure that everyone understands their roles and responsibilities. There are several ways to do this. You can:
- Provide training on contract administration
- Develop a contract administration manual
- Hold regular meetings to discuss contract administration issues
- Use a software program to help with contract administration
Key Forms Used in Contract Administration: There are several key forms used in contract administration. These include:
- Certificates of Payment: These forms certify that the contractor has completed a certain amount of work and is entitled to payment.
- Schedule of Values: This form lists the value of each work item in the contract. It is used to track project costs and to prepare Certificates of Payment.
- Change Orders: These forms are used to document changes to the contract.
- Change Directives: These forms direct the contractor to change the work without the client’s consent.
- Cash Allowances: These forms track cash allowances included in the contract.
- Submittal Log: This form tracks submittals made by the contractor.
Download the Bulletin and Attend the RForm Con-Ed Program: Want to learn more about contract administration? Download our free bulletin, “Architect’s Guide to Contract Administration.” This comprehensive guide covers everything from the basics of contract administration to more advanced topics like dispute resolution.
Looking for a more in-depth learning experience? Consider attending our RForm contract administration continuing education (Con-Ed) program. This one-hour course will give you a deep understanding of the essential forms used in contract administration. You’ll also learn to use RForm software to streamline your contract administration process.
Next Steps:
- Learn more about the Architect’s Guide (anyone on your project team can use it) in the Contract Administration bulletin here.
- Learn more about the RForm Con-Ed program here
Conclusion
Contract administration is an essential part of any construction project. By getting your team up to speed on contract administration, you can help to ensure that your project is completed on time, within budget, and to the required standards.
