A contract administrator efficiently and effectively oversees contracts, keeping in mind the organisational interests. Administrators ensure that the terms and conditions of an agreement are fully met for a long-term partnership.
They work closely with the company management to identify areas of improvement in an agreement. Such administrators review contractual documents and perform risk assessments. Read to know about the duties of these administrators in detail.
Contract Administrators Across Industries
Types of administrators differ depending on the industry sector and some of them are:
- Construction: They are mediators between the company and stakeholders. They ensure all parties meet contractual obligations and follow local laws.
- Information Technology: These type of administrators draft, negotiate and prepare IT contracts that comply with data and privacy regulations.
- Procurement: These administrators oversee legal terms with suppliers and vendors and ensure timely delivery of goods as per agreements.
Key Job Functions of Administrators
Read key job functions of the contract administrators here:
1. Drafting Contracts
Administrators are responsible for preparing drafts for the intended contracts. These individuals include customised clauses with standard contractual clauses, helping in portraying project uniqueness.
Their job in this step is to clearly define terms and conditions, expectations, and risk identification. Administrators ensure that contracts meet business requirements and are compliant with industry regulations.
2. Collaboration with Other Teams
These administrators work closely with other departments to seamlessly drive contracts towards success. They work with departments like project management, operations and sales to ensure that they are on the same page.
Contract administrators share updates with stakeholders and other experts involved in the agreement and modify terms if required. For example, they take advice from legal experts if a contract is legally sensitive and they get it reviewed.
3. Contract Negotiation
Administrators rely on contract negotiation strategies and initiate long-lasting agreements. Their job involves negotiating the contractual terms, conveying the interests of the employer and listening closely to the other parties.
They mitigate contractual risks and if any issue persists they relay feedback to the particular department for clarification. Contract administrators ensure that agreements are duly signed by all parties for approval.
4. Contract Monitoring
These individuals keep real-time updates of existing and new agreements to track their progress. They track set milestones of agreements and ensure that all deadlines are met within the agreed time.
The administrator is also responsible for managing the up-to-date documents of all contracts to steer clear of mistakes. They use software like Icertis, ContractWorks, and Zoho contracts to monitor progress.
5. Distribution and Clarification
Contract administrators are responsible for the distribution of agreements amongst the involved parties. Once a contract has been approved, these individuals share copies of the contract with relevant parties.
After all the parties have read the terms and signed them, the contract gets in motion for execution. They also clarify the ambiguities and questions that occur regarding the contractual terms and modify them if necessary.
Skills Required in a Contract Administrator
Employers look for the following skills in an individual for the role of an administrator:
1. Negotiation Skills
Negotiation skills are important to secure a cost-effective and mutually beneficial contract from the business perspective. Contract administrators with higher negotiation skills easily secure contracts that are in the interest of the employers.
If you are looking for a job as a contract administrator, start working on your negotiation skills. With a firm grip over verbal and written communication, an individual can maintain clarity during negotiation.
2. Analytical Skills
Contract administrators actively address risk factors in contractual terms to avert risks. Strong analytical skills help to identify loopholes and sources of risks that can result in legal troubles and financial losses.
Analytical skills can help you to better identify and eliminate risks and errors that come with contractual terms. Hence, if you are looking to secure a job as an administrator, fine tune your analytical skills.
Conclusion
Contract administrators are responsible for drafting, negotiating and working in close collaboration to get an agreement approved. With the help of AI tools, these administrators can easily prepare drafts and get the agreements approved.
