Thursday, August 5, 2010

What is Contracts Management?

The definitions below may assist you to understand what Contracts Management is. However, it is important that we understand Contracts Management in our own realm and practicalities, and not being influenced by any rigid definition..........Ezani Rais bin Shaiks Salim (2010).

In law, a contract is an agreement between two or more parties which, if it contains the elements of a valid legal agreement, is enforceable by law or by binding arbitration. That is to say, a contract is an exchange of promises with specific legal remedies for breach. These can include Compensatory remedy, whereby the defaulting party is required to pay monies that would otherwise have been exchanged were the contract honoured, or an Equitable remedy such as Specific Performance, in which the person who entered into the contract is required to carry out the specific action they have reneged upon...........Wikipedia. (2010). Contract. Retrieved July 8, 2010, from the Author's Web site:

Management in all business areas and organizational activities are the acts of getting people together to accomplish desired goals and objectives. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources.

Because organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. This view opens the opportunity to 'manage' oneself, a pre-requisite to attempting to manage others

Management can also refer to the person or people who perform the act(s) of management..........Wikipedia. (2010). Management. Retrieved July 8, 2010, from the Author's Web site:

Contract management or contract administration is the management of contracts made with customers, vendors, partners, or employees. Contract management includes negotiating the terms and conditions in contracts and ensuring compliance with the terms and conditions, as well as documenting and agreeing on any changes that may arise during its implementation or execution. It can be summarized as the process of systematically and efficiently managing contract creation, execution, and analysis for the purpose of maximizing financial and operational performance and minimizing risk..........Wikipedia. (2010). Contract Management. Retrieved July 3, 2010, from the Author's Web site:

Contract management is the process that enables both parties to a contract to
meet their obligations in order to deliver the objectives required from the contract.

It also involves building a good working relationship between customer and
provider. It continues throughout the life of a contract and involves managing
proactively to anticipate future needs as well as reacting to situations that arise.
The central aim of contract management is to obtain the services as agreed in the
contract and achieve value for money.This means optimising the efficiency,
effectiveness and economy of the service or relationship described by the contract,
balancing costs against risks and actively managing the customer–provider
relationship. Contract management may also involve aiming for continuous
improvement in performance over the life of the contract..........Office of Government Commerce. (2002). Contract management guidelines [Brochure]. Retrieved July 3, 2010, from the Author's Web site:

Administrative activities associated with handling of contracts, such as
(1) invitation to bid,
(2) bid evaluation,
(3) award of contract,
(4) contract implementation,
(5) measurement of work completed, and
(6) computation of payments.

It also includes monitoring contract relationship, addressing related problems, incorporating necessary changes or modifications in the contract, ensuring both parties meet or exceed each other's expectations, and actively interacting with the contractor to achieve the contract's objective(s). Also called contract (2010). contract management. Retrieved July 8, 2010, from the Author's Web site:

What are the attributes of a good Quantity Surveyor (QS)?
In short are the ability to describe clearly, fully and precisely the requirements of the designers. The end result is a Bill of Quantities which could be priced quickly, easily and accurately.

The above can be achieved by having the following competencies:

Sound knowledge of building materials and construction and of customs/norms/practices in the industry.

Knowledge in Contract (i.e. Law of Contract).

Able to visualise drawings and details.

Careful and accurate in calculations.

Familiar with current market prices, costing of Contractor's price, experience of construction process and economic trend.

Systematic and orderly mind.

I am sure the lists above are not conclusive and can be expanded further. However, these I believe are some of the generic attributes..........Ezani Rais bin Shaiks Salim (June 2010).

1 comment:

Anonymous said...

salam,sye nk tau ade brape care untuk buat cost analisis??