Contract Administration

CONTRACT ADMINISTRATION
PRESENTED BY: GROUP 3

CONTRACT
• A contract is a legally binding or valid

agreement between two parties.
CONTRACT ADMINISTRATOR
• Oversee projects from the start to
completion, ensuring that work is
completed on time and within its budget.
• The first point of contact for members of
the public , clients, site managers and sub-
contractors.
HOW TO CREATE A CONTRACT?
AGREEMENT
CONTRACT
ENFORCEABLE BY LAW
7 FUNDAMENTAL CRITERIA OF CONTRACT
MANAGEMENT
1. Creation
2. Negotiation
3. Adherence
4. Service Level Agreement
5. Managing Changes
6. Documenting
7. Analyzing
ELEMENTS OF CONTRACT
1. Offer
2. Acceptance
3. Consideration
4. Mutuality of Obligation
5. Competency and Capacity
6. Consent
OFFER
• An offer is a promise to act or refrain from acting,
which is made in exchange for a return promise to do
the same.
ACCEPTANCE
• Acceptance of an offer is the expression of assent to
its terms. Acceptance must generally be made in the
manner specified by the offer.
CONSIDERATION
• The value exchanged need not consist of currency.
Instead, it may consist of a promise to perform an act
that one is not legally required to do or a promise to
refrain from an act that one is legally entitled to do.
INTENTION OF LEGAL CONSEQUENCE
• Closely related to the concept of consideration is the
mutuality of obligation doctrine. Under this doctrine,
both parties must be bound to perform their
obligations or the law will treat the agreement as if
neither party is bound to perform.
LEGAL CAPACITY
• A natural person who enters a contract possesses
complete legal capacity to be held liable for the
duties he or she agrees to undertake, unless the
person is a minor, mentally incapacitated, or
intoxicated.
CONSENT
• Not every contract need be in writing to be valid and
binding on both parties. But nearly every state
legislature has enacted a body of law that identifies
certain types of contracts that must be in writing to
be enforceable
TYPES OF CONTRACTS BASED ON VALIDITY
1. Valid Contract
2. Void Agreement
3. Void Contract
4. Void-able Contract
5. Contract un'enforceable by law
VALID CONTRACT
• Complies with all essentials of contract and
is enforceable on all parties.
All VALID
Contract
Contract
essentials CONTRACT
VOID AGREEMENT
• An agreement not enforceable by law.
Not
VOID
Agreement fulfilling
CONTRACT
essentials
VOID CONTRACT
• contract which is legally enforceable when entered but
become void due to supervening impossibility of
performance.
contract becomes void due to :
- Legally performance becomes impossible
- Physically performance becomes impossible
- When an option of rejection is used in voidable contract
VOIDABLE CONTRACT
• an agreement which is enforceable by law at the

option of one or more of the parties but not at the
option of other.
CONTRACT UN'ENFORCEABLE BY LAW
• contract which is good in substance but because of

some technical defect cannot be enforced by law.
TYPES OF CONTRACT BASED ON FORMATION
1. Express Contract
2. Implied Contract
3. Quasi Contract
EXPRESS CONTRACT
• expression or conversation
• It may be written or in oral form.
IMPLIED CONTRACT
• An implied contract is a legally-binding obligation
that derives from the actions, conduct, or
circumstances of one or more parties in an
agreement.
QUASI CONTRACT
• quasi contracts are created by the court when no
official agreement exists between the parties, in
disputes over payments for goods or services
TYPES OF CONTRACT BASED ON PERFORMANCE
1. Unilateral Contract
2. Bilateral Contract
3. Executory Contract
4. Executed Contract
UNILATERAL CONTRACT
• A unilateral contract is a contract
agreement in which an offeror promises
to pay after the occurrence of a specified
act.
BILATERAL CONTRACT
• A bilateral contract is an agreement
between two parties in which each side
agrees to fulfill his or her side of the
bargain.
EXECUTORY CONTRACT
• It’s a contract between a debtor and another party
under which both sides still have important
performance remaining.
EXECUTED CONTRACT
• An executed contract is a legal document that has
been signed off by the people necessary for it to
become effective.
• Contracts often specify that one party will provide a
service or goods to the other, and are not fully
effective until all parties involved have signed
CATEGORIES OF OF CONTRACTS
1. Fixed Price
2. Cost Reimbursement
3. Time and Materials
FIXED PRICE
• Firm- Fixed Price
• Firm-Price with Economic Price Adjustment
• Fixed Price Incentives
COST REIMBURSEMENT
• Cost Plus Incentive Fee
• Cost Plus Fixed Fee
• Cost Plus Award Fee
• Cost Plus Percentage of Cost
TIME AND MATERIALS
What do you call if the agreement
is not honored by one or more of
the parties to the contract by
non-performance of one party?
BREACH OF CONTRACT
BREACH OF CONTRACT
• is a legal cause of action and a type of civil wrong, in
which a binding agreement or bargained-for
exchange is not honored by one or more of the
parties to the contract by non-performance or
interference with the other party's performance.
TYPES OF BREACH OF CONTRACT
1. Anticipatory Breach - occurs when a party
demonstrates his intention to break a contract.
2. Actual Breach - occurs when during the performance

of the contract , one party fails or refuse to perform his
promise under the contract.
REMEDIES FOR BREACH OF CONTRACT
1. Recession of the Contract
2. Quantum Merit
3. Specific Performance
4. Injuction
5. Liquidated Damages
RECESSION OF THE CONTRACT
• the act of the party rescinding, and not of the court,
although, it is common to speak of a court 'setting
aside' or rescinding a contract.
QUANTUM MERUIT
• a reasonable sum of money to be paid for services
rendered or work done when the amount due is not
stipulated in a legally enforceable contract.
SPECIFIC PERFORMANCE
• Specific performance is an order of a court which
requires a party to perform a specific act, usually
what is stated in a contract.
• It is an alternative to awarding damages and is
classed as an equitable remedy commonly used in
the form of injunctive relief concerning confidential
information or real property.
INJUCTION
• an injunction means that one of the parties to a
certain action must either do something or refrain
from doing something.
• Once the court makes its decision, the parties must
abide by the ruling. If the party fails to adhere to the
injunction, there can be stiff monetary penalties and
even imprisonment in certain instances.
LIQUIDATED DAMAGE
• Sum of money (agreed-to and written into a contract)
specified as the total amount of compensation an
aggrieved party should get, if the other party
breaches certain part of the contract.
THANK YOU!

Contract Administration

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CONTRACT ADMINISTRATION

PRESENTED BY: GROUP 3

• A contract is a legally binding or valid

• an agreement which is enforceable by law at the

• contract which is good in substance but because of

2. Actual Breach - occurs when during the performance

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