Employment and Regulatory Risk

Posted: November 28th, 2013

Name:

Lecturer:

Course:

Date:

Employment and Regulatory Risk

A contract is an accord that is legally binding and enforceable between two or more parties. Contract administration involves the analysis activities taken by a company in ensuring that all the contract requirements are fulfilled by the contractor. The development of an effective and efficient contract administration plan is a very important activity especially to companies that enter into several contracts at the same time. Whether the business entity develops a simple or complex plan, the business entity must ensure that the plan is centered on the main contract outputs and most efficient performance procedures for investigating on a contract’s performance. The administration plan for a contract is a way of making sure that the business entity achieves all the benefits bargained for from the contractors.

The development of an administration plan for a contract has several effects on a company’s business. The first is that the company will need to incur costs in terms of salaries and remunerations. The development of the contract administration plan will require the hiring of a contract administrator who will ensure that various contracts are rightfully and clearly fulfilled by the contractors. This may very well alter the human resource systems and the budgeted salaries for the given business entity in the development of the contract administration plan. This however, may not be viewed as an expense for the company but as a form of investment since the activity will bring several benefits for the company.

When a company develops an efficient contract administration plan, the business entity is bound to save a lot in terms of time. This is because the contract administration plan simplifies the pertinent aspects of the contracts. This makes it easy and fast in effecting changes in the contracts or requests. This also makes it possible for the business entities to ensure that the contracts are finished in the prescribed time and quality.

The plan makes it easy for the business entity to monitor both progress and changes of the contractors. This is because the plan consists of various monitoring duties of the administrator, which include on-site visits, analysis of the performance reports of the contractor’s, and the monitoring on the contractors progress. The details of the contract administrator’s duties and responsibilities included in the plan ensure that business entity is therefore able to ensure the contractors progress is according to plan. Any changes are therefore quickly identified and the relevant measures effected immediately.

The plan also ensures that the company saves up on the available recourses. By ensuring that the contractors finish their duties on time, the plan saves the company on unnecessary wastage of labor costs, and other recourses. It also ensures that the company gets to reap the benefits of the given contract in due time.

On careful analysis of the company, it is evident that the company subscribes to the development of a contract administration plan. The contract administrator is the one charged with managing all the binding contracts that the company engages in. the administrator has a list of all the contracts the company engages in their respective contractors. The administrator usually carries out routine checks on the progress of the contractors and advises the board on the necessary changes. The administrator also checks to ensure that the company reaps the full benefits bargained for in the contracts. He also advises the administration board on the relevant changes in the contracts.