ROLE OF CONTRACT MANAGEMENT IN CONSTRUCTION INDUSTRY

The luck of all projects is closely relates to the right prepared contract. Contracting is an integral part of construction projects. Managing the contracts therefore is equally important for the success of any business process due to rapid increase in multiple contracts. Contract and partnerships are an essential part of today’s high speed, multilateral business culture both in the public and private sector. Contract management is becoming an integral part of project management, and business in general. Many commercial and project managers are more and more facing contract management issues. Contract management is the active management of the relationship between the client and the contractor over the term of the contract for the provision of goods and services to the agreed standards. Contract ma nagement should be proportionate to the value, risk and complexity of the contract. In this seminar report information about contract management is given. The constructions contract lifecycle model and each of the construction contract lifecycle phases is described. The guidance in this report provide us with the know-how to manage the contract "start up", manage the process relating to unresolved issues; administer the contract effectively; undertake performance management; and manage contract disputes. Successful contract management organisations can increase control, increase effectiveness and reduce cost and also provide strategic and competitive advantages. Good preparation, the right contract, single business focus and service delivery management and contract administration factors essential factors for good contract management. In Construction contract life cycle model, each phase consists of different elements which are very important in the realization of the purpose related to exact phase. There are several reasons why organisations fail to manage contract successfully, the chief reason for project delays is poor contract management, therefore proper contract management is essential