Contracts

Contract Administration Plan

Business Law - Law/531

John H. Norton

August 22, 2010

Contract Administration Plan

Learning team B in week fours discussion forum focused on the last two paragraphs of the article “Claims Avoidance Techniques.” Using the Internet additional research was obtained to discuss how the development of a contract administration plan affects a company’s business and how our individual company’s subscribes to such an activity, and if so how?

Contracts are what set the rules for how a company will interact with its vendors and contractors. How a company handles these contracts, from writing to ensuring that its terms are met, can be a time-intensive and laborious process. Establishing internal rules and guidelines on handling these contractual procedures and controlling the documents associated with them is the basis of a contract administration plan. By setting and following these procedures diligently, a company can ensure that it is provided with goods and services covered in the contract and at the correct costs. It will also allow the company to prove its case in whatever forum necessary should the other party to the contract fail to meet its obligations. In short, doing up front work on establishing a contract administration plan will pay long-term dividends in both ensuring the company receives what is due under the contract and limit losses when another party defaults on a contract.

Contract administration is a need to setup process for monitoring and assessing the contract. As contract mature, the assessment of how the contracts worth can be assessed to determine in changes need to occur when renewed (McLeod, 2011). Administrator need to monitor the integrity and value of contracts as regarding the efficacy for the company. Are the contract accomplishing what is expected by the organization and ensure an ongoing analysis of the contracts performance, Is the roadmap that has been established leading up to the...