Contract administration refers to the internal work carried out within a company relating to its contractual obligations. Contract management refers to the internal work performed across a company relating to the management of its contracts.
There are important differences between the two, and they have implications for how a company can extract maximum value from its signed agreements. The following sections will explain these in more detail:
Who is a Contract Manager and a Contract Administrator
A manager works on existing contracts, contributing to contract maintenance and ending, while an administrator does the work before the contract begins.
Both the contract manager and administrator need to know and understand contracts and their contents and a company’s past and current contractual history and plans for the near future.
If the contract is renewed, the manager may indeed pass the contract to the administrator so that the administrator can renew it. But this would be a renegotiating phase. During this phase, the administrator would renegotiate the terms of the contract.
What is Contract Management?
Contract Management is an essential part of any business. It is the process of managing contracts between a company and its clients using tools such as ContractSafe Online. It is also known as Contract Administration.
A contract manager is responsible for ensuring that all contractual obligations are met. They ensure that the client is happy with the service provided and that the company is paid for its services.
Responsibilities of a Contact Manager
Contract managers are responsible for fulfilling the terms of a contract. They may initiate projects to meet goals outlined in the contract, or they may work in procurement, where their duties include checking bills of sale or approving checks to pay disbursements.
To full fill a contract, a contract manager must be equipped with the skills necessary to oversee the process of fulfilling a contract. Duties of a contract manager.
- Review the contract as questions arise about the contract terms, such as a clause requiring you to pay $100 per month for each year you use the service.
- To check for potential breaches in the contract or any conflicting interest that may arise.
- Contract managers interpret the contract terms to be understood by the rest of the company, including those who may not be familiar with legal terminology.
It’s not easy to understand a contract because they are written lawfully. They are often difficult to understand for those without legal training. A contract manager needs to have the best communication skills to ensure that the team fully understands the roles required to fulfill the project, the goals of the project, and what’s involved if the project fails.
What is Contract Administration?
Administration refers to the day-to-day operations of running a contract. This includes paying invoices, sending reminders when due dates approach, and keeping track of payments made under the contract.
The administration role requires someone who has experience working within a specific industry and knows which companies provide similar products/services.
This person should know how to find information quickly online and offline and efficiently navigate websites and databases.
The administrative assistant will need to have good organizational skills and be able to prioritize tasks effectively.
How Do I Become A Contract Administrator?
There are many ways to become a contact administrator:
- You could start a small contracting firm. If you already have some contacts, then you might consider starting a new business.
- You could join a larger organization that provides contract management services. These organizations usually offer benefits packages, job opportunities, and other perks.
- You could look into becoming self-employed. Several resources are available on the internet that explains how to set up a consulting practice.
If you decide to pursue this route, it’s important to make sure that you choose a niche market that suits your interests and skillsets. For example, if you enjoy writing, perhaps you would want to focus on providing content marketing services. Or maybe you prefer graphic design over web development. Whatever field you end up choosing, remember to keep learning! It never hurts to ask around at networking events or local community centers.
You could also try freelancing. Freelance sites like Upwork allow people from all walks of life to bid on jobs posted by clients looking for help. Some freelance workers get paid hourly rates, while others charge fixed fees based on hours worked.
It’s worth noting that most contracts don’t require any specialized knowledge. However, if you plan to work independently, you’ll likely need to learn more than just basic accounting practices. In addition to being proficient in Microsoft Excel, you’ll probably need to master QuickBooks Online, Xero, Freshbooks, etc.
To succeed as a contractor, you’ll need to develop strong communication skills. When dealing with customers, contractors can use email, phone calls, text messages, social media platforms, video conferencing tools such as Skype, Google Hangouts, GoToMeeting, WebEx, Zoom, etc., and live chat software such as LiveChat, Intercom, Chatfuel, etc.
Contract administrators play an integral part in ensuring that businesses stay afloat during times of economic uncertainty. They ensure that their company remains profitable and efficient to continue offering quality service to its clientele.
As mentioned earlier, there are many different types of positions out there. So, before deciding what type of position best fits your needs, take time to research various options. Also, think carefully about whether you’re willing to commit yourself full-time to one particular career path.