The principal objective of vendor and contractor contract administration is to ensure the fulfillment of the contractual obligations by all parties to the contract or subcontract. The required level of effort for vendor and contractor contract administration depends on the magnitude and importance of the contract or subcontract. On larger projects with multiple product and service vendors and contractors, a key aspect of contract administration is managing the interfaces among the various participants along with all other contract administrative activities.
It is critical that all members of the project team be aware of the legal implications of actions taken when administering the contract. For vendors and contractors, the effort normally needs to focus on vendor and contractor delivery management rather than personal interfaces.
The following are the recommended actions associated with vendor and contractor contract administration:
■ Verify vendor or contractor contract booking. After the vendor or contractor contract or subcontract has been awarded, the project manager must ensure that the vendor or contractor contract data are entered into the project and business databases. Critical vendor or contractor information areas are anything impacting on cost, schedule, meetings, and deliverables. The PMO can arrange for this action to be accomplished when the contract is established, but it is a good rule to have the project manager verify that through a notification initiated by the accounting department.
■ Organize vendor/contractor contract files. The project manager must retain critical vendor and contractor contracting documents in a file created for each vendor and contractor. This process should be an integral part of the project management information system, a component of the project knowledge management system. Vendor and contractor contract files typically contain the following information:
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.