Contracts Administration Definition
The term ‘contracts administration’ refers to the process of managing and administering contracts. This includes the negotiation, execution, and performance of contracts. It also encompasses the management of risks associated with contracts. Contracts administration is a critical function in any organization that engages in contract-based transactions.
An effective contracts administration function will help an organization to:
– Negotiate favorable terms and conditions in contracts
– Execute contracts efficiently and in compliance with organizational policies and procedures
– Monitor and manage contract performance to ensure delivery of contracted goods or services
– Manage risks associated with contracting activities
Contracts administrators typically work closely with other functions within an organization, such as procurement, legal, finance, and project management. They may also interface with external parties such as vendors, suppliers, and service providers.
