The importance of contract administration as a link in the chain

The importance of contract administration as a link in the chain

After the pre-contractual and contractual stage in the supply chain, the execution of the contract is born, which in most cases in organizations is the responsibility of experts from user areas, who normally require the contracted goods and/or services as part of the development of their activities.

Stages in contract administration

This stage is highly important as it is the implementation of all the aspects defined in the contract. This must effectively comply with the specifications of the requirement, regulations, internal policies and conditions of the contractor’s offer, amalgamating the theoretical part defined with a reality in the highly efficient execution at the level of use of resources (cost-benefit). ) where high standards of information and documentation traceability must be guaranteed.

In this way, there must be a correctly defined program so that Contract Administrators or Supervisors have knowledge and experience in the guidelines and best practices to carry out their task fully, highlighting the monitoring and control of those general aspects of the contract applicable to all agreements generated by the organization, such as those specific to the contracted good and/or service, its deliverables, ANS, quality, acceptances to satisfaction; but also the mechanisms for solving problems or eventualities during its execution.

Relevant aspects

As a relevant aspect, carrying out performance evaluations of the contractor during the execution of the contract is essential to guarantee correct provision of the good and/or service, allowing during the same term the establishment of action plans if required.

The documentation generated during the execution of the contracted activity with its review and validation, as well as all those follow-ups, audits carried out, day-to-day supports and their modifications (others, suspensions, restarts, early terminations, among others), are pillars fundamental in the correct management of the contract, it being important to have all its history in one place, guaranteeing traceability and timely response to any requirement.

Technology today supports this link in the supply chain with online solutions that become the right hand not only of the contract administrator, but also of his counterpart, making this process a measurable aspect that allows the decision making required as part of the continuous improvement implemented by organizations.

Ricardo Plata

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