A contract refers to spoken or written legal agreement, especially those concerning sales, employment or tenancy, which is envisioned to be imposed by laws. The role of contract administration is to manage legal agreement made between an enterprise and customers or any interested parties ( Scarborough, 2016) . In most cases, it permits parties to agree on terms and conditions of engagement as a way of providing clarification. In most cases, a problem often arises when one or both parties fail to adhere to set outlines in the agreement-a situation known as breaching the contract. In such instances, heavy fines follow court proceedings and relationship breakdown. Administering contract, therefore, assists in continually clarifying the content of legal agreements so that each party would not breach it. On the whole, it serves to save the business from tantrums of foul relationship.
Roles of Contract Administration
Fostering a happy environment. People are often glad when each party knows her or his position at work. Sticking to terms and conditions make the job more manageable.
Delegate your assignment to our experts and they will do the rest.
Position safeguard. In case of arising misunderstandings, safe storage of contract data often acts to save the day.
Conflict resolution. Since there are well laid down terms and conditions, disagreeing parties can often refer to them and find a lasting answer.
Nurturing a proper relationship amongst stakeholders. A contract agreement has clauses that define the prime role of everyone. As a result, parties can often find solutions to differences amicably through referring to terms of service. Therefore, the cordial relationship is often topmost.
Work Statement
In this section, work specifications, expectations, and performances are outlined. It offers roles, agreements, and liabilities of every party ( Spurgeon, Hicks, Field, & Barwell, 2005) . It is a complex thing to write. Thus, some level of expertise is required. Types of the statement of work and they entail:
Design
Level of time statements
Performance-based
Even if there may be a disparity in work statement as per a given enterprise, there is a set outline worth adherence.
Success definition
Timetable
Creating milestones
Easy to understand the language
Specificity in wording
Requirements of Stakeholders
It translates to views of the users, consumers, and acquirers at the firm or business level. They define the role of a system. Some of its merits entail: serves as a means of a link between senior and junior workers, the department of finance, and that of management. Also, it forms the basis for validating the entire system.
Commercial Codes
They define those elements of the contract that are uniformly used in every contract and laws. Notably, the features are crucial to both the buyers and sellers since they form the basis of the entire agreement formation ( Harmon, & Trends, 2010) . For a contract to be legally binding, it must have specific elements. They include the following:
Offer
Competency and capacity
Acceptance
Mutuality
Consideration
Written instrument
Fixed Price Format
It serves to state the price of the good and services supplied between buyer and seller. Notably, fixed price format helps to either reduce or eliminate time wastage that may occur between the involved parties such as unnecessary negotiation. However, caution should be observed as resources may be wasted on shoddy materials. It lacks flexibility in that supplies and events must happen as is in the contract. One merit of this kind of agreement is that it eliminates disagreements as parties get straight to business.
References
Harmon, P., & Trends, B. P. (2010). Business process change: A guide for business managers and BPM and Six Sigma professionals . Elsevier.
Scarborough, N. M. (2016). Essentials of entrepreneurship and small business management . Pearson.
Spurgeon, P., Hicks, C., Field, S., & Barwell, F. (2005). The new GMS contract: impact and implications for managing the changes. Health services management research , 18 (2), 75-85.
