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How does the development of a contract administration plan

 
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Customer Question

How does the development of a contract administration plan affect a company’s business?

would like a response by 9 am EST. thanks

Submitted: 531 days and 19 hours ago.
Category: Business Law
Value: $40
Status: CLOSED

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Expert:  socrateaser replied 531 days and 19 hours ago.

A contract administration plan is the act of a business that has grown to the point where it must standardize the maintenance of business agreements in order to effectively manage business accounts.

Contract administration is typically used with vendors that sell services, rather than goods, because service contracts remain "executory" (pending continued performance) for a long period of time. Whereas contracts for goods generally end with delivery to the purchaser.

However, from a purchasing side, goods contracts where long lead times and continuous streams of parts are required may also lend themselves to contract administration efficiencies.

The upside of contract administration is that a well-established plan makes continuing growth and maintenance fair more cost effective. The downside is that a contract administration plan means the end of extremely broad negotiating terms of contractual agreements -- because custom agreements are the antithesis of a standardized contract administration plan.

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Category: Business Law
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Answered: 10/22/2011

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