Any person or firm involved in business activities has to deal with contracts of various kinds on a daily basis. The managing of contracts regarding employees, customers, partners, or vendors is referred to as contract administration or contract management. Contract administration stipulates the terms and conditions that govern the contract, as well as documents any courses of action that should be taken in the event of any changes during execution of the contract. Contract administration is a process of creation, analysis and execution of contracts, with the aim of maximizing business performance and minimizing risk.
Contract manager jobs also require the contract manager to maintain all contractual documents made between the company and existing or potential clients and employees. He or she may also be required to train newly hired and inexperienced project managers and other subordinates on the procedures of creating contracts, as well as on their analysis, evaluation, and final execution.
Furthermore, contract manager jobs require one to formulate company contract procedures to be used by management, and to advise the Risk Management Department (if it exists in the particular organization) on pitfalls in various insurance contracts to reduce the likelihood of incurring losses. They sometimes also must follow up with contracts regarding termination; help the product management department by formulating terms and conditions that are favorable to customers, but still guard the company against unwarranted claims; manage employees by ensuring they comply with company's contractual agreements; and ensure that any contracts handled by the company are delivered to the concerned parties within the required period.
Apart from the aforementioned responsibilities, contract manager jobs also require the contract manager to keep track of the competitive terms and conditions offered to customers and recommend adjustments for further satisfaction; he makes sure transactions are compliant with the company's contractual procedures; he negotiates directly with client lawyers in case of contract breach by the company or client; and he also works with the financial controllers to ensure that the company's financial matters are handled according to established office procedures and that they comply with their contractual obligations.
Contract manager jobs are varied in the United States. Typically, they may be classified under the headings of contract visibility and awareness, commitment management, baseline management, communication management, transaction compliance, service level agreement compliance, contract visibility and awareness, and growth and savings agreements.
Many firms do not explicitly define the role of the contract manager as outlined above. For instance, those engaged in sales transactions may also be classified as procurement managers. Others may have no further responsibilities after appending their signatures to contracts, while some may be assigned additional roles after this. Although contract manager jobs are fairly similar in many organizations, one of the major differences is in the accountability and authority given to the contract manager to change contracts. Another difference lies in whether the scope of the contract manager's duties covers the firm's strategic role regarding contract policy generally, or specific contracts made solely to cover individual deals.
Contract management jobs usually require one to hold a college business degree, preferably in business administration. Some companies may hire non-degree holders who have a number of years of experience in contract management. Most companies prefer to hire applicants who are experienced in contract drafting, and who have negotiating skills. Moreover, candidates should possess good communication skills, have good interpersonal skills, be able to multi task, and have strong organizational skills. Mathematical and analytical skills are also a plus for job seekers in this industry. In addition, candidates applying for contract manager jobs should be willing to travel, as the job may require relocation or frequent traveling. Basic computer skills are a must, especially proficiency in Microsoft Office packages.
Although this is not a requirement, candidates who are Certified Professional Contract Managers have better chances of employment, as do those who are members of national contract management associations. Comprehension of general business practices, contractual principles, government regulations, finance and account principles, as well as subcontracting practices, increases the chances of being hired by employers.
With time, successful contract managers in large corporations often move to senior project management positions in the firm. They may also be appointed as directors or project managers and may handle a number of projects at a given time. Those experienced with handling people and coordinating teams may be accorded the role of director within the company.
Contract manager jobs are expected to increase in coming years, and qualified applicants will continue to receive good compensation for their services. Contract managers who work for government agencies usually receive lower pay than their counterparts in private practice. The compensation for contract managers usually varies depending on the skills and experience of the manager, as well as with the size of the company. However, experienced managers usually receive good compensation packages in addition to other benefits offered by the agency.
Conclusion
Contract manager jobs will continue to steadily increase in the coming years. However, entry into the industry is expected to remain competitive as many graduates who are highly qualified search for these jobs. Some contract managers may opt to start consulting on a part-time basis, while those who are more experienced may decide to venture into consulting on a full-time basis. For these entrepreneurs, it is important to have a client base before venturing into consulting, as the job is competitive, and little-known contract managers may find it difficult to manage their own practices.
