5 Best Practices for Preparing a Contract Administration Plan.

5 BEST PRACTICES
FOR PREPARING A
CONTRACT
ADMINISTRATION
PLAN
M E A S U R E M A N A G E

Once the ink is dry on the contract you've signed, you
still need to actively manage the transaction in order to
make sure that it goes off without a hitch. That's what a
contract administration plan is for: a formal document
that describes how both parties will remain in
compliance with the terms of the contract throughout
the length of the agreement.
In order to maximize the chances of a successful
contract and reduce friction and disagreements, your
contract administration plan should be as definitive
and detailed as possible. Following the five guidelines
below will help make your next contract administration
plan an excellent one.
1. DEFINE THE SCOPE AND DELIVERABLES
Clearly defining the project's scope and deliverables at the outset is
important for two reasons:
• First, it helps you avoid scope creep, in which requirements gradually
and insidiously expand during the project, putting the contract's success
at risk.
• Second, it lets both parties know exactly what to expect at the end of the
project.
In addition to defining the deliverables, you should include clear
standards for the acceptance of each deliverable, in order to minimize the
chances of disputes.
2. INCLUDE A DETAILED TIMELINE
Every contract has a given time period during which it is in effect. Your
contract administration plan should include start and end dates for the
project, as well as the deadlines for each of the deliverables. In addition,
you should include the frequency with which the contractor will send
periodic updates about progress on the project and on each deliverable.
https://measuremanage.com.au

3. SORT OUT FINANCES
At this stage, you should already know the pricing structure for the
contract: how much the contractor will be paid, in what format and
at what intervals. This should be formalized in the contract
administration plan, along with a mechanism for additional
expenses in the event the contractor requires more funds.
4. PLAN THE WORK
The contract administration plan should include detailed work plans
that assign employees and funds to each part of the project. If you need
to make use of third-party personnel such as temp workers or
outsourcing firms, you need to mention it at this stage so that you can
make plans well in advance. You should also include descriptions of how
you will measure performance throughout the project so that corrective
action can be taken if necessary.
5. ANTICIPATE THE RISKS
Even the best-laid plans can go wrong through no fault of your own:
natural disaster can strike, employees can quit and economic and
financial conditions can change rapidly. As such, contract
administration plans should identify some of the most likely risks to
befall the project, and include provisions for what to do in the event
they occur. The work plan that you create should include some leeway
and flexibility in terms of time and budget so that you can recover
from these events without endangering the success of the project.
FINAL THOUGHTS
Winning the bid and signing the contract are important first steps, but
drafting a contract administration plan ensures that you have a strategy
for the success of the contract. In order to have greater control,
visibility and security and to streamline your processes throughout the
contract lifecycle, consider using a dedicated contract management
software solution.
https://measuremanage.com.au

CONTACT US
We are your one-stop shop for handling construction projects
in Australia. From initial planning to the final contract, we
provide a range of ancillary services which enable you to
complete your projects successfully. We are looking forward to
hearing from you.
Feel free to get in touch with us!
MAIL US AT
info@measuremanage.com.au
CALL US ON
0498 202 445
VISIT us on
https://measuremanage.com.au
Location: 10 Ripplevale Cir, Carramar WA 6031, Australia