Protecting The Contract Managers
Contract management is something construction companies can do on their own, or subcontract out to a professional organization. Contracts are complicated legal documents and contract managers assume all of the risk involved in executing and altering contracts. All of this opens up a lot of areas of risks, which is why it is important for construction companies to understand and protect the work contract managers do.
What Do Contract Managers Do?
Contract managers are responsible for making sure a contractor follows the precise guidelines of a contract, and they also help make changes when necessary. Contract managers also help to search for subcontractors that meet the requirements of the contract, and they are constantly comparing the real progress of a project with the contract. It is precise work that has a lot of risk involved.
The Responsibilities Of A Contract Manager
Every contract has baseline requirements that must be met before payment can be released, and those requirements usually have a timeline attached to them. It is the responsibility of the contract manager to manage baselines and make sure the project is meeting client expectations. The contract manager is responsible for preparing change orders and then making sure that all project documentation is properly organized and maintained.
One of the most important jobs of a contract manager is to identify potential areas of risk within every contract. While a contract manager may be good at identifying risk, they usually do not have the tools necessary to address that risk. That is why most contract managers work closely with risk management companies to help put together solutions that protect the contractor from risks involved with every project. If something were to happen, the contractor would be protected from serious financial damage.
Protecting The Contract Manager
When you deal in assessing risk every day and are responsible for the proper execution of complex contracts, you will find yourself in the middle of your own series of potential risks. If a contract manager misreads a clause in a contract or does not properly file a change order, then they could be looking at legal action that could end their career. By working with a good risk management company, the contract manager can protect themselves from situations where one mistake could cost them dearly.
When you deal with contracts, you assume risk for yourself and your client. Any experienced contractor will tell you that not preparing for risk is like preparing to go out of business. Contract managers should be partnering with experienced risk management companies to make sure that they are protected from any possible contract-related issues, and that their clients are protected from risks that could create significant financial disaster.