Preparing a contract administration plan - Essay Example

PREPARING A CONTRACT ADMINISTRATION PLAN Effects of a contract administration plan on a company’s business Developing a contract administration plan helps a company to improve on its efficiency in managing contracts for complete performance. The plan ensures that necessary schedules are drawn and necessary measures are taken for timely implementation of contracts. By ensuring a well drawn schedule for implementation, identification of the required resources and possible threats to a contract implementation as well as making provisions for adjustments, a contract administration plan helps a company to avoid litigation that would arise from failure to execute a contract either qualitatively or quantitatively (Harmon and Stephan, 2001; Luther and Media, 2012).

My company’s subscription to such an activityThe company adopts contract administration plan. This plan, as implemented by the company includes a series of measures undertaken to ensure that contracts execution are monitored for effective performance. One of the approaches adopted by the company towards contract administration is a well established “contract management system,” a system that records information about contracts for effective management. In order to maximize its capacity to manage data on processes and transactions, the organization applies a combination of data base applications that include “Access, FoxPro and SQL” (Harmon and Stephan, 2001, P. 2). The three systems have historically been incorporated into the organizational management to ensure continuity and familiarity in management processes.

The organization has also implemented contract administration plan through ‘well-managed’ schedules. Adoption of electronic approach by the company has particularly facilitated an efficient contract management plan. Through this approach, the company ensures predefined and planned undertakings in executing contracts. The management schedule has also facilitated proper administration of processes that are undertaken in pursuing contracts. Similarly, the organization uses schedule management to identify anomalies in time plans and to initiate corrective measures.

Monitoring and evaluation of proposed schedules and a comparison with the actual schedule has also been a critical tool for the company towards administration of contract plans (Harmon and Stephan, 2001)Proficiency in managing financial accounts and obligations in deliverables is another approach that the company applies towards administration of contract plan. By tracking consideration in agreements, the company avoids litigations for failure to meet its obligations in time. It has also helped the company to monitor and maintain quality in delivery of goods and services.

Proper financial management in contract administration has been another approach that helps the company to meet its financial obligations as they fall due and to track its debtors for claims (Luther and Media, 2012).ConclusionContract management plan outlines an entity’s approach to administering its contracts. It lays down measures for consideration in effective implementation of a contract. A contract administration plan defines schedules, identifies threats to a contract implementation, and prescribes measures to be taken to avoid liabilities that arise from failure to perform a contract.

My company adopts the management plan in its operations. Its plan includes a contract management system that ensures tracking of all information relating to the organization’s contract. Similarly, the company implements schedule management for timely delivery of its obligations and ensure proficiency in its management of contractual transactions.ReferenceHarmon, K. and Stephan, B. (2001). ‘Claims avoidance techniques: best practices for contract administration’. Retrieved from: http://harmonyorkassociates.

com/Claims%20Avoidance%20Techniques.pdfLuther, C. and Media, M. (2012). ‘Preparing a contract administration plan.’ Retrieved from: http://smallbusiness.chron.com/preparing-contract-administration-plan-40327.html