The role of Contract Managerhas evolved over the years, shifting from a primarily administrative function focused on managing contractual documents to a strategic and versatile position. Today, Contract Managers must be able to play an active role in providing strategic advice to senior management as well as supporting teams on the ground.
This raises the question: " Willthe Contract Manager become a hands-on professional?"
Let’s try to answer this question by examining the strengths and limitations of this perspective.
In brief
The Contract Manager is no longer just an administrative staff member, but a strategic pillar. Key takeaways:
- Responsiveness: Having a local presence allows us to adjust contracts in real time in response to unforeseen circumstances.
- Risk management: On-site oversight ensures direct control over execution and minimizes disputes.
- Balance: The hybrid approach combines a comprehensive strategic vision with targeted actions.
Why does an on-site presence ensure the proper fulfillment of contracts?
For a Contract Manager, being a hands-on professional means being right in the thick of things, where contracts come to life.
This offers significant advantages, such as:
1. Understand operational challenges and the realities of the business
A deep understanding of operationsthat provides a concrete grasp of the company’s activities. Gaining a better understanding of operational challenges requires adjusting contractual terms so as not to damage the business relationship.
2. Improve responsiveness to unexpected events and contingencies
The ability to respond tounforeseen situations that can arise at any time. Having a presence on the ground makes it possible to react quickly, make immediate decisions, and thus streamline the decision-making process to ensure a project’s progress.
3. Streamline negotiations by leveraging the proximity of the teams
Strengthening relationshipsleads to closer ties with operational teams, subcontractors, and other partners. This enhances communication and can result in smoother and more effective negotiations.
4. Improved compliance monitoring to reduce litigation
Monitoringcontract performanceand ensuring compliance with their terms, which improves the detection of non-compliance and minimizes the risk of disputes.
The Challenges of Local Contract Management
Despite these advantages, the Contract Manager’s role in the field is not without its challenges. In fact, this can once again confine them to a very limited role, in which:
Maintaining strategic vision and risk management
The balance between strategy and day-to-day operationswould no longer exist, forcing him to abandon his role as a risk manager—a role that requires long-term thinking and a broad perspective.
Logistical and budgetary constraints on the ground
Costs and timewould become prohibitive and time-consuming, to the detriment of contract management profitability.
The complexity of coordinationwould involve dealing with multiple stakeholders and navigating complex environments.
Toward a hybrid approach: balancing strategy and operational presence
Perhaps the question is not whether the Contract Manager should be a hands-on professional, but rather to what extent they should be one. A hybrid approach could offer the optimal balance:
Focus on key moments for a strategic presence
The Contract Manager could make regular site visits during critical phases of a project, such as key construction phases, the start-up phase, or when specific issues arise. This would allow them to stay in touch with day-to-day operations while maintaining a broad overview.
Working primarily in small-scale organizations, I have often had the opportunity to wear two hats: project manager and risk manager.
During certain phases of construction projects with the French Defense Procurement Agency (#DGA), I was required to attend site meetings involving all stakeholders in my capacity as a #risk manager. The main purpose of my presence was to ensure that interdisciplinary interfaces were properly maintained and that the financial risks associated with schedule delays were adequately addressed by the project owner (#MOA).
Digitizing monitoring using digital tools
- The Contract Manager would remain informed and involved in operations without having to be physically present at all times. This would maintain a balance between their strategic and operational responsibilities, but at the same time would not allow them to fully grasp the challenges associated with the concurrent nature of multiple #construction #projects.
On a project for #EDF Nuclear (#CNPE) involving the replacement of lifting equipment, I had to participate in some of the on-site technical meetings from my office in Nantes using modern digital tools (#Microsoft #Teams). This allowed me to stay within my travel budget for this project, but on the other hand, I had difficulty explaining to the client the full extent of our interactions with the scaffolding teams (#SIEMO).
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In conclusion
In my experience, the role of the Contract Manager as a hands-on professional depends largely on the company’s specific needs and the context in which they operate.
For example, when overseeing electrical or instrumentation projects, the Contract Manager must possess both technical and contractual skills and be able to interact closely with field teams.
This shows that an active presence on the ground is crucial to ensuring that contracts are properly executed. However, a Contract Manager must be able to combine strategic planning with targeted on-site interventions in order to be more effective.
I am regularly called upon to help my clients implement monitoring tools or identify the contractual risks associated with their contracts. Please feel free to contact us to discuss your needs.
