Contract managers and project managers are both crucial members of any business team. They may have similar tasks and responsibilities, but their obligations may widely differ based on the complexity of the project or contract. While project managers are responsible for working with cross-functional teams to closely manage new initiatives from start to finish, contract managers are responsible for tracking every deadline, deliverable, and other obligations set out in a company's contracts.
TABLE OF CONTENTS
- Why are contracts important to project managers?
- What qualifications do you need to be a contract manager?
- About Zendoc
Why are contracts important to project managers?
From a project manager's perspective, a contract is a mechanism for involving other organizations in the success of a project. Also, the contract is essential in defining the responsibilities and obligations of the different parties, preventing misunderstandings about the scope, time, cost, and quality of the goods or services being exchanged.
Is a contract administrator a project manager?
Before a certain project lands in the hands of a project manager, it is first handled by contract administrators. The main focus of contract administrators is to make sure that the contract is drafted in such a way that all parties involved have thorough understanding of their responsibilities and obligations before signing. Contract administrators make sure to outline major components of the contract, including delivery dates, disbursement dates and amounts, performance measurement, and terms of acceptance and dissolvement of the agreement. These components will then become the basis of the project manager to determine if the business and the other party are keeping up with their end of the deal.
More on this topic: Why is contract management important?
What qualifications do you need to be a contract manager?
Basic qualifications of a contract manager may differ depending on the business. Preferably, business owners would like to hire someone who has a Diploma in Contract Management and a Contract Management Professional (CMP) certification. A contract manager should have a basic to moderate understanding of contract law, engineering, finance, business, and accounting. Great leadership skills and keen attention to details are also a must. Contract managers should also have initiative and excellent verbal communication skills.
What is the difference between contract management and contract administration?
The main difference between contract management and contract administration lies in the timing of their task. Contract administrators are usually in charge of the task prior to the signing of a contract while contract management is responsible for the implementation and monitoring of the contract after it has been sealed. While contract administrators ensure that all parties know their terms and obligations before signing the agreement, contract managers make sure that all parties are capable of carrying out their contractual obligations after the contract is signed.
More on this topic: What are the top 5 contracting skills?
About Zendoc
Zendoc is a full-service AI-powered contract automation system that not only organizes all of your agreements into a single database but keeps you up-to-date on what you need to do to extract as much value from your contracts as possible. You don’t have to worry about forgetting your obligations because you don’t have to remember them in the first place.