Contract administration involves activities performed to determine how well a contractor performed in meeting the requirements of a contract from the time the contract is awarded through to project completion, payment and, if applicable, resolution of any issues or disputes. Contract administration can be time-consuming, depending on the nature of the project, the type of contract and the contractor performance and the nature of the work.


Contract administration involves the function of ensuring contract activities are in compliance with contractual specifications such as quality, quantity, objectives, schedules and manner specified within the contract. It also requires the review of progress reports, status reports and timesheets as required. Particularly when contracts extend over long periods of time, contract administration must also include monitoring expenditures and ensuring funding availability.

Payment Processing

One of the most important contract administration factors is payment processing. While the contractor must ensure he complies with and fulfills the requirements of the contract, it is the responsibility of contract administration to ensure invoices are reviewed and processed in a timely manner so the contractor is paid in accordance with the terms of the contract.


Contract closeout starts after the contracted project has been finished, all services have been rendered and all products have been delivered. It involves a review of all expenditures and the completed project to ensure funds have been used efficiently and all areas of the contract have been fulfilled.