A contract manager is in charge of the administration of a company’s written agreement with a vendor. The manager has the ability to work on both sides of the contract. Due to the fact that this position is used in a variety of industries, including for-profit businesses, non-profit organizations, and government agencies, the duties and scope of the job can vary. A contract manager is typically responsible for contract execution as well as ongoing communication with the other party. File maintenance, financial reporting, and contract term monitoring are examples of specific responsibilities.
Many different types of businesses and organizations hire outside companies to complete work that they can’t do in-house. These companies are hired as third-party vendors, and they agree to follow the terms of a written contract. These written agreements typically cover a long period of time, sometimes years, and form the foundation of an ongoing relationship that must be closely monitored to ensure that both parties receive what was promised in the contract. The relationship must also be managed so that the project stays within contract parameters and operations are not disrupted by personnel changes.
Furthermore, each contract is unique. There isn’t a single standard vendor contract that contains the same terms for all parties. Each contract is managed by the contract manager as a separate relationship with its own set of terms and conditions. He’ll usually be assigned to a negotiation once the terms have been agreed upon, and he’ll be in charge of getting all of the paperwork signed and delivered first. He becomes the point person for administration once the contract is operational and continues until the contract expires.
Depending on the nature of the engagement, contract administration can include a wide range of responsibilities. The contract manager is in charge of all communication between the parties, including status updates that show how far they’ve come toward their objectives. In many cases, he will serve as the contract’s chief compliance officer, performing site visits and spot checks to ensure that nothing unusual is occurring. The contract manager is usually in charge of the expense budget, tracking expenditures, collecting receipts, and collaborating with the finance department to produce financial reports.
Contract deviations and change management are also handled by the contract manager. The contract manager takes care of the details if the vendor’s key personnel leave or if a budget modification needs to go through approval channels so the project can continue to run smoothly. Typically, he is in charge of providing stakeholders with periodic contract reporting that summarizes the status of the work completed under the contract.