CONTRACT ADMINISTRATION AND PRACTICE

Introduction

Contract administration encompasses all the activities performed by construction consultants after a contract has been awarded to determine how well the contractor can meet the project’s requirements. The process constitutes a primary part of the procurement process that assures the client gets what it paid for. As such, there is an emphasis on obtaining services and supplies of the requisite quality within the specified budget and on the required timeline. Every contract has legal requirements that determine the proper course of action for all the parties involved; the exercise of judgment and skill is required of all parties to effectively protect the interests of both the client and the contractor.
The purpose of this report is to provide an analysis of a contract administration (pre-qualification process) involving a government project with four key work packages; a new breakwater with rip rap protection; two new harbor walls with berthing points for ships; plant for offloading, and stacking containers; access roads for and railhead; office buildings and facilities for port staff. The client’s preliminary risk workshop identifies various risks that may impact the quality and completion of the project on the required time and within the specified budget. These risks include; unforeseen marine weather conditions such as high tides and storms, uncertain ground conditions for the office building and harbor wall, and possible supply chain shortages. In light of these risks, the specific issues highlighted by the report include; the most suitable forms of contracts for the packages comma and why these forms can best deal with the anticipated and unexpected risks in this scheme; how the client can successfully administer the scheme through contract personnel, and an organizational chart for the scheme; how the contracts can provide reliable financial information for the client’s business planning, and in what form this information should be.