Contract Administration

   Learning Team C Reflection

Casey Beighley, Deelip B. Joshi, Jose Carmelle Dieudonne, and Ian Hosein


April 8th, 2013

Ivy Voss

Week 4 Learning Team C Reflection

            Team C has concluded after researching the Internet for “ preparing a contract administration plan” and reading the article from the student website “ claims avoidance techniques” article that a contract is a binding agreement between two parties or more could be that of a government, business entities, or individuals (Luther, n.d.). During the contract negotiations, an offer is made by one party to fulfill the requirements or actions and receive payments from the other party or parties for the work done. A contract administration planning consists of creating a system that strengthens the enactment of consumers and traders duties.  It also make available resources for timely recognition of performance issues before they happen.

Contract administration plan impact on company’s business

            A contract plan defines the responsibilities to all parties that enter into the contract. Some of the key aspects included in a contract administration are deliverables, schedules, finances, work plan, and risk management is important for its success in implementation. According to Harmon & Stephan (2011), all damages need to be negotiated on a case by case basis when damages happen. Everything needs to be in compliance with the plan. Contract administration plan affects a company business in development if changes are required by contractor’s cost or time of performance. The development of a contract administration plan affects a company’s business because “proper contract management saves time and money when change orders are requested or claims prepared” (Harmon & Stephan, 2001). The contract administration plan allows a company to be more organized and helps when other people who are brought in to help, who are unfamiliar with the activities such as attorneys (Harmon & Stephan, 2001). “In contract administration, the focus is on obtaining supplies and services, of requisite quality, on time, and within budget” (Best Practices for Contract Administration, 1994).

Does your company subscribes to such an activity, and if so, how?

One of the team member is an employee of a National Railroad Corporation, Amtrak, and passenger service. For this company, maintaining and repairing the tracks is usually done by private contractors. For nearly two years this company has been told that refurbished Cafe cars will be added on to existing equipment and will operate along the new routes. Management has to follow the rules and regulations implemented by California Department of transportation and other local counties and authorities. With the help of these authorities, high speed rail project is also under consideration to expand the services to Los Angeles area from Fresno. The contractors bear the responsibilities to mitigate effects to cost and time and must submit reasonable bids and tenders. Change orders and requests to local authorities must be submitted in case of any changes in plans or construction delays to minimize the costs and make up time lost. Other team members companies don’t in reality subscribe to such activity.

In summary, we all have concluded that developing a plan help an organization stay organized and maintain protocol.  Without a plan, progress can’t be monitored. The whole point of project administration is to make sure the business gets what it wants and needs all while not spending an unnecessary amount of money and time.












Office of Federal Procurement Policy. (1994). A Guide to Best Practices for Contract Administration . Retrieved from

Harmon, K. J., & Stephan, B. M. (2001). Claims Avoidance Techniques: Best Practices for Contract Administration. AACE International Transactions, 1.1.

Luther, C. (n.d.). Preparing a Contract Administration Plan. Retrieved from

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