Contract administration is one of the most neglected areas in public contracting. The majority of the focus is placed on the procurement process, although this is usually a comparatively shorter period than the implementation of the contract itself cz-lekarna.com. This is not to lessen the importance of the procurement process in getting the contract awarded, but it is after the contract is awarded that the real benefits of undertaken the procurement process can be obtained, so more attention needs to be placed on ensuring that the contract is implemented as intended and agreed.
Contract award marks the beginning of the contract administration phase. Contract administration deals primarily with the management of risks in the post award period, and its main purpose is to monitor performance to ensure the objectives of the contract are met on time and within budget, and also to detect anything that might go wrong and find a remedy (including suspension or termination of the contract) before it’s too late.
It is misleading and risky to believe that only procurement practitioners (through the procuring entity) are responsible for contract administration. In fact, once a contract is awarded, the procuring entity is too far removed from where the actual implementation of the contract takes place to effectively monitor the performance of suppliers, contractors and service providers.
It is therefore important to determine, already during the procurement phase, the entity or entities responsible for contract administration.
Masithembele Mzileni says
Does the Employer have the powers to cancel a contract between the Contractor and the Employer if the employer is at fault?
Jorge Lynch says
There should be a provision in the contract for its termination. The contract should be terminated in accordance with such provision, and compensation or penalties applied accordingly if the provision so stipulates.