Last Updated on April 29, 2022 by Admin
Contract Managers are in charge of projects in collaboration between two or more organizations. They manage all project parts, from contract review and approval to deadline coordination, budget approval, etc.
Contract managers operate in various industries, including real estate, health care, government agencies, and more. They usually start as Contract Specialists and work their way up to managerial positions. Building contract managers assist with contract bidding and subsequently oversee the contractual costs of construction projects.
A contracts manager may be in charge of a single scheme or oversee numerous smaller ones. For the duration of the contract, they are the primary point of contact for members of the public, clients, site managers, and subcontractors. Construction contracts with owners, subcontractors, and suppliers will be drafted and negotiated with the help of the Contracts Manager.
What is a Contracts Manager?
At its best, contract management is about risk management and relationship management. At its most basic level, a contract is a document that describes a connection between two parties, what each of them agrees to do, and who bears the risk if things don’t go according to plan.
Contract management is concerned with managing that connection and the associated risks to ensure that both parties receive the desired outcome. Everything, including cash flow, revenue, commitments management, and everything else, is based on this fundamental concept.
In the construction industry, a contracts manager oversees contracts for construction projects. The research contract law assists in negotiating terms and conditions with clients and third parties before drafting legal documents outlining service terms and project deliverables.
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What does a contracts manager do?
As a Contracts Manager, you must complete the following tasks:
- Assist project teams in preparing and submitting pre-qualification documentation
- Assist in the awarding and negotiating of subcontracts
- Assemble and track exhibits for owner agreements and subcontracts.
- Examine bid proposals and owner agreements for potential conflicts of interest in bid documents and contracts.
- Make professional service contracts.
- Create confidentiality agreements and other documentation as needed.
- Collaborate and establish relationships with people from various backgrounds and organizational levels.
- Lead by example, provide excellent coaching and feedback, and manage performance effectively.
What are the main responsibilities of the Contracts Manager?
The Contracts Manager’s job description includes the following primary responsibilities:
- Creating client tenders and commercial bids to assist attract new business
- Proposing and presenting project ideas
- Meeting with clients to learn about their needs
- Making plans and calculating budgets and timelines
- Deliberating, creating, analyzing, and negotiating commercial contract terms
- Working out budgets and timelines with customers
- Managing construction costs and timetables
- Dealing with any unanticipated expenses
- Participating in site meetings to track progress
- Serving as the primary point of contact for clients, project managers, and site managers.
- Collaborating with other parties to ensure that everyone is aware of their obligations and roles.
- Ensuring that construction projects adhere to agreed-upon technical specifications
- Communicating with technical and financial personnel, subcontractors, legal teams, and the client’s representatives
- Overseeing invoicing at the end of a project
- Working on-site and in an office.
How you will succeed in a career in Contracts Management?
These pointers can help you become an effective contract manager:
- In-depth knowledge of the contracting process, from negotiation to execution (alternatively, paralegal degree and experience with construction project transactions, including owner agreements and subcontracts)
- Expertise with Microsoft Office Suite
- Strong organizational abilities, attention to detail, and great oral and written communication skills
- A strong commitment to teamwork
- Professional customer service skills and a positive attitude
- Effective communication, active listening abilities, and openness to various input and feedback.
Skills required to become a Contracts Manager
The following are the skills that a Contracts Manager should have:
Solid contract management is built on the foundation of strong collaborative skills. Contract managers deal with various people, both inside and externally because contracts cover many business areas. A professional contract manager (CM) will effectively collaborate with all parties during the creation and amendment of these contracts.
The Contracts Manager frequently consults with subject matter specialists to comprehend and focus on specific aspects. They also collaborate with their peers and outside contacts to address issues, assess performance, and suggest changes to the agreement.
BUSINESS KNOWLEDGE DEPTH
A smart contract manager will not only be knowledgeable about their company’s operations but will also know who to turn to for functional or area expertise. As a result, interpersonal skills, networking, and good working relationships are critical.
Contracts Managers must understand the contractual aspects of their business and the business itself. They have to:
- Keep a constant eye on their agreements.
- Recognize how standard clauses have changed.
- Be aware of the standard phrasing changes.
- Stay informed about updates to the authoring templates.
- Know how to handle the risk of non-compliance.
PROJECT MANAGEMENT AND COMMUNICATION
A good contract manager will be able to communicate effectively, which is linked to teamwork. Stakeholders must be informed about the deal, which necessitates communication. The organization must also be aware of the varied expectations, obligations, performance measures, and compliance concerns.
Project management is also closely linked to communication. For the Contracts Manager, this entails following up on concerns, monitoring, and evaluating performance regularly. Project management in many sectors necessitates the collaboration and coordination of several specialist teams to analyze and scrutinize deliverables. As a result, every excellent CM’s skill set includes it.
Shifts, tweaks, and changes are required once an agreement in principle is made with a third party. A CM can’t possibly consider every single permutation, choice, or possibility.
As a result, the CM must engage with internal and external partners to make fair modifications or find alternatives. Negotiation is inextricably linked to teamwork.
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- STRONG UNDERSTANDING OF AGREEMENTS AND ATTENTION TO DETAIL
This is, without a doubt, the most crucial ability. A good CM will pay attention to the nuances, such as missing punctuation at the end of a phrase or a misspelled word, and recognize how important they are.
The meaning of a clause or a critical condition can likewise be substantially changed by inarticulate or unclear phrasing. You can’t let contract concerns slip through the gaps, and you can’t ignore minor punctuation or grammatical errors.
This level of attention to detail and a thorough understanding of your contracts go hand in hand. It’s all about having a firm grasp of your company’s policies, standard clauses, and keywords. And it is here that technology can help.
It can assist contract managers in staying on top of averages, norms, peculiarities, and outliers, which is critical for risk management and consistency improvement.
Essential Qualification required to become a Contracts manager
- Bachelor’s degree in Civil Engineering, Building Science, Engineering, Architecture, Construction Management, or any other relevant discipline; B. Tech-Civil / PG in management, law, or QS would be required.
- Should be familiar with both contract execution and contract administration.
- Excellent command of the English language and drafting abilities in English. Because a construction contract manager is needed to work with a diverse group of people, including subcontractors, contractors, architects, and suppliers, he or she must have strong verbal and writing communication skills.
- Keyboard skills are essential, and a working knowledge of Microsoft Windows and related word processing, spreadsheet, and database software.
- Work assignments will necessitate a working grasp of building sequences and industry-standard work processes.
- Strong organizational and interpersonal abilities and the ability to effectively communicate with project team members and management.
- Technical understanding of construction, as he or she will be required to deal with complex and detailed projects.
- Excellent problem-solving skills, as he or she will be required to deal with multiple projects from the head office in a construction or infrastructure company.
- Technical understanding of construction, as he or she will be required to know building codes, trade sequencing, and best construction practices.
- A strong sense of judgment allows a construction contract manager to make key decisions for construction projects while also comprehending the consequences of those actions.
- Work experience of at least 5 years in a professional capacity
Salary Details for Contracts Manager
According to Salary.com, contract managers typically earn anywhere from $106,800 to $142,300, with an average salary of $123,720.
The national average salary for a Contract Manager is ₹13,23,737 in India, which ranges from the highest salary of ₹22,22,373 per year to and lowest salary of ₹4,74,917 per year.
The contract management sector is expanding, and many business leaders realize the importance of having capable and committed contract managers on their teams.
As the construction industry grows, more contract managers will be required. Construction contract managers are increasingly being hired by businesses to ensure that projects are executed efficiently and successfully.
If you meet all of the prerequisites for Contracts Management and gain proficiency in the Contracts department’s knowledge, this may be the finest option for your construction career. You can also approach higher-level contract professionals for the same and complete the primary internship.