Construction is embedded in a whole lot of legal and regulatory processes to protect all parties involved throughout a project. This is formalised in a contractual agreement, where both the client and the contractor agree to certain terms surrounding the project. This is legally binding to ensure both parties keep up their end of the deal.
For small-scale projects, this can be managed between the client and the contractor, but once more money is involved a Contract Administrator is generally included. Due to the high level of responsibility in managing huge budgets, dealing with massive companies, and coordinating with multiple stakeholders, Contract Administrators (CAs) can find themselves earning some big bucks.
A CA oversees and manages the construction contract, ensuring it clarifies the project scope and payment details.
Typically, this contract will be one of the following:
- Lump Sum Contract: AKA “Fixed Price Contract” defines a complete total price.
- Cost Plus Contract: Two parts are involved: a fixed fee agreed upon by the client and the contractor, and additional costs that are added as the project progresses.
- Guaranteed Maximum Price Contract: The same as a Cost Plus Contract, but a maximum price is defined.
- Time and Materials Contract: Used when there’s uncertainty on the project scope, with the contractor charging an hourly rate for labour and materials.
- Unit Pricing Contract: When costs cannot be determined ahead of time, so unit prices for materials are set.
The overall role of a CA is to ensure project quality in line with the contract. So, the project is not complete or payment due until the CA reviews and approves it. This is done via a “punch list” to determine incomplete work, once the work is then completed and the CA approves, the project can be deemed complete. Such, they act as an intermediary between the client and the contractor to achieve the agreed-upon outcome.
To do this, you will be responsible for the following:
- Submittal packages
- Change orders
- Building codes
- Subcontractor management
- Supplier sourcing
This requires strong organisational and communication skills, where you will work with various people and across multiple documents. So, there’s a ton of pressure and a lot riding on getting everything right – that’s why high-up CAs are earning upwards of $150,000.
Career Pathway
CA offers tiered levels of responsibility, making it an excellent career to establish yourself in. Even in an entry-level role, you’ll gain significant responsibility for the realisation of a construction project, immersing yourself in the challenges and rewards of the field from the get-go.
Qualifications and Experience
CA requires a set of refined skills, knowledge, and experience. It’s a big task with a lot on the line if something is missed – so, companies are looking for professionals who know what they are doing.
To secure the role you want and show employers you’ve got what it takes, you’ll need to have formal recognition of your skills and knowledge.
Upskilling with a qualification in CA is the ideal step to achieve this.
We’ve developed a course covering everything you need to certify your skills or to provide you with the essential knowledge needed to successfully enact a CA role.
Certificate IV in Building Project Support (Contract Administrator) CPC40320
- Unit Breakdown: 15 units, comprising 2 core units and 13 electives.
- Duration: 15 months, complete as fast or slow as you like.
- Study Methods: Recognition of prior learning, online learning, or a combination of both.
- Education Pathways: 8 units – Certificate IV in Building and Construction (Building) CPC40120, & 6 units – Diploma of Building and Construction (Building) CPC50220.
For more specific course information click here.
This is the base qualification required to work as a CA regardless of seniority level.
Assistant/ Junior Contract Administrator
Without much experience in CA, your first point of entry into a CA role is working as an Assistant/ Junior Contract Administrator.
This role supports higher-level CAs by assisting to prepare and monitor contracts, quote negotiations, managing correspondence between parties, and keeping on top of files and requirements of the contract.
To do this effectively, you must understand each aspect of the project, from budget to the tradies on site.
Contract Administrator
Once you’ve developed the right skills and have the experience to back it up, you can move into a Contract Administrator role and manage your own contracts.
As we’ve mentioned, a CA is responsible for ensuring both the client and the contractor meet their legal obligations throughout the project. They are primarily involved in the planning process, making sure contracts are both fair and clear.
To be an effective CA, you need to establish a comprehensive set of technical skills. Communication skills are also crucial as you will manage and go between multiple different people involved in the project.
Contract Administration Manager
The Contract Administration Manager is the senior-level role in CA, with increased responsibility this role requires sufficient experience.
CA Managers review, maintain, and monitor contracts instead of planning them. This means they identify and communicate any contractual breaches while ensuring both parties clearly understand their obligations. They oversee the implementation of the contract throughout the build, by reviewing its parameters in relation to the work being carried out.
CA Managers will oversee a team of CA’s and will often be involved in multiple different contracts across various builds all at once.
To successfully fulfill this role, a strong sense of organisation, contract law, and regulatory compliance are crucial.
In-Demand Skills
To effectively work in Contract Administration, you need a specified set of skills that can be applied across multiple types of contracts.
Some base-level skills you need, include:
- Ability to read and interpret construction plans and terminology, and the building codes and standards.
- Understanding of materials and equipment.
- Negotiation skills and understanding of contractual processes.
