Contract administration involves managing the agreement between an employer/client and contractor to ensure objectives are met on time and within budget. It also requires monitoring performance for deficiencies and resolving conflicts. Key stakeholders in a construction project include design teams, clients, contractors, and project managers. Managing contract risk involves identifying, analyzing, evaluating, and treating risks, as well as monitoring risks over time. Disputes can be resolved through negotiation between parties or mediation with a neutral third party to reach an agreed settlement.

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2. Contract Administration
Purpose of Contract Administration
Contract Administration & Contract Management
Elements of Contract Administration
Key Stakeholders of a Contract
Duties & Responsibility of Stakeholders
Contract Risk Management
Dispute Resolution Mechanisms: Negotiation &
Mediation
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Contract administration, is, the management of
the contract between the employer, or client,
and the building contractor.
A contract administrator or employer's agent is
required to manage, negotiate, support and
execute the contract process.
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Contract administration involves the management of
risks.
Its basic purpose is to monitor performance to ensure
the objectives of the contract are met on time and
within the intended budget, and also to detect any
deficiencies and find a remedy (including suspension
or termination of the contract) before it's too late.
Resolve any conflicts and disputes related to
the contract. Follow up to ensure that
all contractual agreements and payments are
actioned.
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Contract administration is concerned with the
state of the agreement between the two parties in
the period before the contract has been finalized.
Contract management is focused on the
implementation of the contract after it has been
finalized.
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A variety of stakeholders is involved in
any construction project.
Major participants including design teams,
clients, contractors and project managers are
examples of stakeholders that have the ability to
hinder or promote the progress of
a construction undertaking.
The customer, subcontractors, suppliers, and
sometimes even the government are stakeholders.
The project manager, project team members, and the
managers from other departments in the organization
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1. Owner/Client/Investors
2. Architect/Consultant
3. Structural Engineer (Designer)
4. Contractor &/ Subcontractor
5. Project Manager
6. Supervisor/Engineer
7. Labours & Public
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Contract risk is the potential that a counterparty
will fail to meet their contractual obligations to you.
Step 1: Identify the Risk. The first step is to identify
the risks that the business is exposed to in its
operating environment. ...
Step 2: Analyze the Risk. ...
Step 3: Evaluate or Rank the Risk. ...
Step 4: Treat the Risk. ...
Step 5: Monitor and Review the Risk.
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Negotiation is a process where two parties in
a conflict or dispute (fight) reach a
settlement between themselves that they can both
agree on. ...
Mediation means the process in which a neutral
(means not supporting any one side) third party
assists the parties in conflict to reach a solution.

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Negotiation Stages:
There are five collaborative stages of the
negotiation process: Prepare, Information
Exchange, Bargain, Conclude, Execute.
There is no shortcut to negotiation preparation.
Building trust in negotiations is key.
Communication skills are critical
during bargaining.

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The Mediation Process and Dispute Resolution
1. Planning: Before the mediation process begins,
the mediator helps the parties decide where they
should meet and who should be present. ...
2. Mediator's introduction....
3. Opening remarks....
4. Joint discussion....
5. Conclusion...
When parties want to get on with their
lives, mediation allows a more reasonable
timetable for resolving a dispute. Less
Expensive: Mediation is vastly less
expensive than a typical lawsuit.

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