Last Updated on April 19, 2022 by Admin
Contracts engineers can work in various settings, including consulting and construction companies, or vice versa. Working as a self-employed contract engineer and being paid for each finished job is another alternative. Some went out on their own or with partners to start their engineering consultancy.
A number of them work in architectural firms as well. Contracts Engineers can also work in concrete construction, timber framing, etc. They generally do work that involves renovating buildings or changing their uses, such as from an office to a shop or a residence.
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What is Contracts Engineer in Construction?
A contracts engineer is responsible for analyzing, developing, and negotiating construction contracts on behalf of their employer. They collaborate with architects, engineers, and other subcontractors to ensure that the project runs smoothly and on time.
Contracts engineers must be able to read and comprehend complicated technical drawings and be well-versed in the legal ramifications of building projects.
To appreciate what a contracts engineer performs, you must first comprehend what the contracts department does. It’s not about getting into the department; it’s about working successfully and making a name for yourself. Before you do anything else, you must be interested in working for the same company.
A contracts department’s job is divided into various sub-divisions. To work in the department, you must be familiar with material and labor costs. Material specifications, activity durations, cost constraints, contractor and vendor information Working on a project site will offer you a taste of everything. You must understand execution, billing, procurement, and vendor agreements, among other things.
What does a Contracts Engineer do?
Contracts Engineers are engineering experts who oversee projects and ensure that the contract conditions meet all clients’ needs. Their key responsibilities include developing, implementing, and reviewing contracts and ensuring that best practices are followed on any particular project, and making all updates available to all project participants.
They also advise technical professionals on various goods and applications, manage subcontracted labor and suppliers, and address client grievances. They must deal with difficulties that could jeopardize the project’s start and finish dates, contract payment, invoicing, non-chargeable charges, and labor or equipment prices.
A contracts engineer’s basic roles include the following:
- Carry out adequate contract appreciation and verify that contractual terms are followed:
Contractors are usually given a hard copy of the Contract Document, thousands of pages long. It is impossible to search the entire document for key terms such as variations/payments/advances, etc.
As a result, a Contracts Appreciation Document is required. Make a note of all the important clauses and organize them into several schedules. This makes it easier to locate essential clauses when they are needed.
- Recognize risks and devise risk-mitigation strategies:
Detailed risk analysis is carried out at several stages of the project cycle, such as
- project planning and procurement,
- execution and monitoring,
- project closure and claims,
- project operation and maintenance, and so on.
- Develop and sustain client relationships:
Even if you have a valid claim, your client may refuse to accept it. You can’t accomplish anything without the help of your clients. As a result, we keep a positive relationship with the client.
- Ensure that work is measured, billed, certified, and collected in a timely and accurate manner:
It is necessary to maintain track of the interim payment schedule. Check the deductions (Taxes, Interests on Advances Taken) and advances (Material Advance, Mobilization Advance, and so on) and the Bank Guarantee expiration details. Steel, cement, labor, gasoline, and other commodities escalation calculations Deductions for principal and interest on RA Bills.
- Ensure claim and variation identification, documentation, and submission.
In this section, you must refer to all relevant documents and IS codes to locate a loophole in the contract document and claim additional time and expenses.
- Ensure documentation and preparedness for Dispute Review Boards and arbitration:
In this situation, all documents must be readily available before the arbitrator, or it may backfire.
- Prepare contractual letters, have them authorized by the Project Manager, and send them to the client, subcontractors, government agencies, and other parties.
It takes a long time to write an extension of time letter because it must address all of the project’s requirements.
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- Finalize subcontractor engagement:
Create subcontractor work orders, finalize their rates and scope of work, and guarantee validation of subcontractor bills under contract requirements, including material/quantity reconciliation using SAP.
- Assuring that various contemporaneous records are maintained appropriately by various departments following contract stipulations.
- Recording roadblocks and rescheduling physical and financial milestones using MSP per the delay analysis
Duties and Responsibilities of Contracts Engineer
Overall duties and responsibilities of a Contracts Engineer are divided into six phases.
- Preparation to Execute Contract:
- Understand contractual terms and conditions, methodology, the scope of work, compensation schedule, project milestones/critical path, and contract administration requirements before executing the contract.
- All appropriate contract management and administration procedures are in place.
Define procurement and logistical deliverables and put them together.
- Ensure that the contractor’s monitoring tools are properly placed for planning and that qualified procurement and contracting personnel are available to execute contracts.
- Collaborate with project managers and others to ensure that objectives are accomplished, that Company decisions are made quickly, and that necessary notices are communicated.
- Before making promises, ensure that document review and approval protocols are followed and implemented according to the Company Authority framework.
- Keep track of the project’s progress and delivery deadlines.
2. Contracts Management & Administration and Performance Monitoring:
- Assume the lead role in day-to-day management, administration, and compliance with the terms and conditions and achieve a functional Contract interface.
- Systematically and efficiently manage contract execution and analysis to maximize financial and operational performance while minimizing risk.
3. Assist with contract execution and administration, which includes:
- Determining the contract’s key performance criteria.
- Coordinate contract performance meetings, including participation in contract/contractor performance monitoring meetings, supplier performance consequence management, and regular supplier performance reports.
- Before starting physical work, gather contracts, performance securities, and insurances that are current and lawful.
- Manage post-award matters such as contract value utilization, revisions, amendments, contract claims, contract extension or renewal, and the close-out process of open PO processes (on paper and ERP system).
- Keep track of any deviations, revisions, or amendments during the contract’s implementation to make handling any potential claims easier.
- Contract-related administration in general.
4. Contractor Management and Performance:
- Manage contractors and ensure that all contractual responsibilities are met, including identifying risks and managing performance.
- Ensure that contractors’ subcontracting arrangements are supported by written subcontracts, and only hire a subcontractor who possesses the requisite abilities and resources to safely complete the task within the scope of the subcontract.
- Assures that all internal departments are aware of the contractual requirement.
- Keep an eye on job commitments and compare them to the contract price and project budget.
- Regular variation management; review variation requests and assist with variation processing, including the formalization of variants; offer administrative support to the Project Manager, and create a variation report.
Compare contractor payments to claims for work in progress and project milestones.
- Respond to questions, address contract issues, and oversee the resolution of disputes.
- Formalize/Issue Company Notices of Acceptance/Rejection that may result in additional expenses, time extensions, contract violations, and any associated follow-up matters with the contractor until the project is completed.
- Ensure that all actions related to contract close-out are completed on time.
- Ensure that all SCM-related internal and external reports are submitted on time.
5. Procurement Governance, Compliance, and Controls:
- Implement authorized SCM Policies & Procedures and guarantee that the job is carried out in a regulated way.
- Preserve high ethical standards and fairness in procurement activities, and strive to maintain and improve the procurement process’s integrity and tight confidentiality of procurement documents.
6. Cost Management Initiatives:
Continuous improvement in procurement and supply chain management significantly impacts total profitability.
Skills required to become a Contracts Engineer
- Contracts Engineers have general management qualities, such as operating with integrity, organizing employee workloads, utilizing sound judgment, driving for results, and focusing on client needs.
- They can also communicate with customers and other personnel inside the organization, and they’re in charge of attending regular contract meetings to determine project status and conditions.
- They should be able to manage and exceed annual financial targets; maximize gross profit margins on individual contracts, and manage financial and monthly equipment purchases to avoid stock holding.
- Candidates should have a thorough understanding of suppliers’ installed systems, stay current on technology advances in our business, and stay current on environmental changes in our industry.
Essential Qualification required to become a Contracts Engineer
- After graduating with a bachelor’s degree in civil engineering, you should pursue a master’s degree in construction management from a reputable government college or NIT or a postgraduate course in advanced construction management from an institute like NICMAR.
- You should also have at least 1 or 2 years of project site experience, preferably on infrastructure projects such as metros, tunnels, highways, and bridges.
- So, with 1 or 2 years of Project Site experience and post-graduation, you’ll be able to understand the fundamental actions that transpired over the project’s lifespan.
- Experience leading a contracts team on various projects across several locations;
- Solid understanding of contractual Terms & Conditions and Commercial Contract Law.
- Thorough understanding of the General Conditions of Contract for Civil Works (GCC CW) and the FIDIC Contract Conditions (FIDIC) Red and Yellow Books from 1999.
- MBA or other advanced contract management degree (s) preferred
- Prepare and consolidate contract papers and ensure submission to the customer before starting the job.
- Demonstrate expertise in the performance of such commercial and contractual obligations.
Salary details of Contracts Engineer
Contracts Engineer salary in India ranges between ₹ 1.6 Lakhs to ₹ 11.1 Lakhs, with an average annual salary of ₹ 3.0 Lakhs.
The average Contract Engineer salary in the United States is $69,515, but the salary range typically falls between $61,853 and $78,410.
A Contracts Engineer is typically an entry-level role in a construction or other company’s Contracts Department. Typically, this type of work is classified as an office job. Before quoting, it also includes some site visits to the project location.
In the construction sector, this is the most intriguing and hardest profession. Calculations performed by the Contracts Engineer at various project stages determine the project’s overall status.
If you have a thorough understanding of the fundamentals of civil engineering, legislation, and calculations, this could be a wonderful career choice in the construction sector.