Overview

Contract administration and oversight involves four general processes: project/contract planning; monitoring contract performance; payment approval with required documentation; and scope changes. The goal of contract administration is to ensure the contract is performed satisfactorily and the responsibilities of both parties are properly discharged. The primary objectives of contract administration are:
  • to verify performance for the purpose of payment;
  • to identify “material breach of contract” by assessing the difference between contract performance and material non-performance;
  • to determine if corrective action is necessary; and
  • to take such action if required.
In order to achieve the goal and objectives of contract administration, a non-construction project must have a well-defined scope of work, clear communications through project meetings, a detailed plan for monitoring the progress of the project and complete documentation of the project work elements.