Contract Managers: A Key Resource for Business Success - Research Paper

Introduction

The value that contract managers bring to the organization is dependable on the knowledge that they have on what they can apply to their jobs to support the mission of the organization. In all businesses, management is the function that coordinates the efforts made by people in accomplishing their goals and objectives through the utilization of the available resources effectively and efficiently (Turner, 2017). Management includes planning, staffing, organizing, controlling, leading, and directing to attain goals including in business sectors, and in governments. Managers and directors with the power and responsibility of making decisions and overseeing an enterprise are called management. In any organization, the size of management ranges from one individual in the business to many individuals in big multinational companies. Most large organizations depend on the board of directors to define policies (Turner, 2017). A contract is defined as the spoken or written agreement that concerns sales, employment, or tenancy, which is intended to be enforceable by the law. Contract management is both strategic and complex, and one of the critical core competencies of a contract manager is human relations. This paper focuses on defining, explaining, and defending human relations as one of the core competencies of a contract manager.

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Background of the Study

Contract management includes processes that are conducted to ensure there is the fruitful establishment of a contract (Villanova University, 2020). The effectiveness of a contract requires that all the necessary processes are considered in the execution and creation and analysis of the contract. The goals of the creation of contracts include; risk maximization, operational maximization of the organization, minimization of risks, and financial performance management. Contract managers play a significant role in the directing and management of a contract throughout the contract lifecycle. One of the duties of a contract manager is to act as an intermediary between customers, companies, suppliers and contractors, and any other people involved in the implementation of the contract (Chartered Institute of Procurement and Supply, n.d). Contract managers facilitate negotiations, recommendations, management changes, and they ensure the proper keeping of records. All managers require excellent competence skills in managing their activities and duties throughout the lifecycle of a contract, including; technical, conceptual, and human relations (Arraiza-Monteux & Henschel, 2013). This research paper focuses discussing the essence of having human relations skills by contract managers in the effective implementation of their duties throughout the contract management cycle.

Explanation of Topic

Human relations are an essential competence in implementation of contracts and aiding managers in execution of company duties. Any contract management aims to ensure that goods and services are delivered timely, with specified requirements, and at an agreed cost (Rendon & Sinder, 2019). This means that the contract manager must know how to develop useful working associations with suppliers, and to ensure effective delivery of services, maximization of value of money and provision of consistent quality for end-users and stakeholders. The extent and nature of a contract vary between contracts and can be influenced by the nature of the value of buying and the type of relationship that the organization wants with the supplier in the long term and short term. Throughout the life cycle of a contract, contract management continues, and it involves; management of deliveries proactively, resolving emerging issues, and anticipation of business needs and potential problems (Rendon & Sinder, 2019). Since contract managers ensure that there are fruitful establishment and payment of services where necessary, a contract manager must ensure there is the maintenance of functional associations among all parties involved.

Defending My Position About My Topic

Skills in interpersonal associations enable contract managers to focus on the people involved in the agreement during contract management. In establishing the contract, first, the contractor on the employer's personal needs to be notified, including the engineer, employees of the engineer, the employer, and any other relevant individual to the contract (Broekhuis & Scholten, 2018). Then roles and responsibilities are established, followed by the establishment of modalities of communication.

Effectiveness in the performance of contracts is dependent on the collaboration and cooperation between and among the involved parties (Villanova University, 2020). Maintaining harmony through keeping open the relationship between the manager and the suppliers is essential in resolving and easing any tensions through the identification of issues earlier. A successful relationship requires that the manager secures senior-level support for the contract and ensures that the arrangement of governance is fair and robust. There needs to be an open sharing of information, and collaborative relationship in solving problems. Aligned with being a good listener, a contract manager must have a collaborative mindset that involves a willingness to help people and associate with many people that are involved in a particular contract. An excellent contract manager relies on stakeholders' staff for the provision of feedback on the performance of suppliers and the background for the amendment of contracts. A good and supportive relationship and cooperation among the contract manager, the supplier, and staff are essential. When it comes to client and customer relationships, a contract manager has the duty of understanding the needs of the client, the norms, and the market industry.

Most organizations lack maximum control over the relationship with parties involved in implementation of a contract. This is because the building of contract relationships takes time. Engagement of strategies for relationships with relevant stakeholders has to be developed early. Based on this, an organization must conduct a careful supplier selection through a consideration of attributes, capabilities, and capacities for their contract, and design a procedure that will test all potential suppliers against them (Broekhuis & Scholten, 2018). This will ensure that the organization has more confidence in who they select as their best supplier at a price that represents their actual value for money. It is essential to establish effective working relationships with suppliers since the nature of procurement will enable the determination of the relationship that the contract manager wants to develop with the supplier. Various models are used to determine the closeness that exists between buyers and suppliers, depending on the nature of the contract. One of these models is the Supply positioning Model that enables an organization to grasp the priority of each contract, the amount of time and effort that is needed in investment in supplier associations. Supply positioning is a significant factor in the establishment of a fit for purpose contract management strategy in the identification of the essence of goods, works and non-consulting and consulting borrower services; this indicates the method that needs to be used in establishing a relationship with the contractor (Broekhuis & Scholten, 2018). The supply positioning matrix aids borrowers in the ranking, in order of importance, the procurements based on the value of contract and cycle costs, and the degree of vulnerability to the agency if the supplier fails to deliver.

All the information regarding the facts and figures of a contract at hand is held by the contract manager who should be organized. Since the contract manager has all the information that the other members of the organization do not possess, he is responsible for entering this information into the contract management tool (Saarekas, 2018). Once the information is inside the contract management tool, the members within the organization can access it, including the names and contact details; hence, the contact manager is required to find all the useful information to be utilized whenever needed by the company.

Dealing with representatives of other contracting organizations require a contract manager to have good interpersonal skills and human relations. A contract manager requires the right skills to understand and manage the relationship with suppliers at all levels. They should be flexible such that there is a willingness to adapt to anticipated challenges. The flexibility of a contract manager in finding mutually acceptable solutions is crucial to the critical success of a contract (Saarekas, 2018). Another skill is proactivity. A good contract manager responds to and anticipates issues, emerging business needs, and risks. Many contract management risks relate to the inability of the supplier to deliver quality goods, on time and within the cost agreed. Disputes in a contract are time-consuming, challenging, and expensive, and they can damage the relationship between the borrower and the contractor. They may cause delays, hence adversely impact the execution of the contract. Issues that arise from contract relationships might cause an increase in the contract price. Each party must, therefore, work to avoid likely disputes; this can be attained through the development of good communications and working associations management with the contractor. Minimization of the party disputes requires that the contract manager can conduct duties per the contract, effectively. For instance, when it comes to works contracts, the contract manager needs to ensure the effective handling of matters for claims and determination (Saarekas, 2018). Most times, despite the levels of effort put, some issues might develop and elevate to dispute levels; hence, every attempt must be made to find efficient and effective solutions that are less costly, including consideration of an amicable settlement.

Building strong communication skills and handling people from distinct disciplines are skills that every Contract managers must possess (Villanova University, 2020). For contract management to be effective, the contract manager must ensure excellent communication that is based on trust, mutual respect, accountability, openness, and understanding. Both the internal stakeholders and staff in a contract have various things to say about its operation and content. An effective contract manager can listen carefully to what is said and respond to people in a manner that suggests that what they say is essential-considering that not everyone in the organization and outside it can be involved in the formulation of the contract, having excellent communication skills is a crucial element in the establishment of a smooth and inclusive agreement. While excellent communication skills involve the ability to write and speak, sometimes, a contract manager needs to stay quiet (Sammons, 2017). Communication also requires that a contract manager listens to the government, the customer, and to know everything that is going on. It means that the manager has to stay updated on all the legal developments within the industry since the ability o communicate clearly with outdated information is close to doing nothing. This means that the contract manager requires enough training, in attending classes, going to seminars and conferences to ensure they remain sharp in their skills. Effective communication will enable a contract manager to be in good terms with members of his team and the supply chain, to be able to negotiate and to come out with a good deal on the table. The suppliers and...