Contract administration is one of the most vague and often misunderstood terms in the contract world. It’s mainly because different definitions of contract administration float around.
In this article, we’ll cover two main definitions of contract administration with a heavier focus on one more than the other. We’ll also set contract management vs contract administration and compare both areas, seeing how they overlap and how both can effectively support one another.
Article highlights
Contract administration involves everything that happens before a contract is signed. Think drafting, reviewing, negotiating terms, and ensuring compliance with internal processes. It’s about getting the deal ready for execution.
Contract management, on the other hand, is everything from an idea to KPIs. Before and after the contract is signed. It covers writing the contract, monitoring performance, managing risks, ensuring compliance, and making adjustments as needed throughout the contract's lifecycle.
Contract administrator = pre-signature focus, ensuring the contract is legally sound and ready for execution.
Contract manager = mainly post-signature focus, tracking performance, and managing risks throughout the contract’s life.
What is contract administration?
Depending on who you ask—or what industry you’re in—contract administration can mean two very different things.
“Contract administration means the preparing of or having plans prepared for the project, acquiring right of way, letting of bids and construction supervision (...).” Source
In one common interpretation, contract administration refers to everything that happens before a contract is signed. That includes tasks like drafting terms, coordinating legal and internal reviews, issuing RFPs (requests for proposal), evaluating vendors, and negotiating clauses.
The goal is to make sure the contract is legally sound, commercially viable, and aligned with the organization’s goals before it's executed.
But contract administration can also mean something else entirely, namely the post-award execution of the contract.
“Contract administration means the post-award administration of the contract to ensure compliance with the terms of the contract by both the contractor and the procuring entity.” Source
In that context, the contract administrator is responsible for making sure the signed contract is carried out properly. So they are monitoring deliverables, timelines, payments, change orders, compliance, and any issues that may arise during the contract’s lifecycle.
Both definitions are valid, and the term is often used differently across sectors. The key is to understand how your organization or industry defines the role—because that directly affects who does what and when.
For the purpose of this article, we’ll focus on the definition that contract administration is all the planning and duties carried out before a contract is signed.
What is the difference between contract management and contract administration?
Contract management is the big-picture process of overseeing a contract from the moment it’s just an idea, drafted in someone’s inbox, all the way through to measuring how well it performs after it's been signed.
It includes everything from creating the contract and negotiating terms to tracking key performance indicators (KPIs), ensuring obligations are met, ensuring there is no breach of contract, and planning for renewals or closeout. It’s both strategic and operational.
Contract administration, on the other hand, is narrower in scope. It focuses on the pre-signature phase—making sure all the right pieces are in place before anyone puts pen to paper or hand to laptop’s mouse in case of e-signatures.
That means aligning stakeholders, collecting approvals, resolving redlines, and getting the document ready to execute. You can think of it as the process that gets the contract ready to go live.
Of course, there’s some overlap between the two.
A contract manager might support drafting and negotiation (which sounds like administration), and a contract administrator might flag risks or suggest edits that impact long-term performance (which sounds like management).
The lines blur, and in smaller teams, one person might do both. But the main difference comes down to focus: contract administration is about getting to signature; contract management is about everything after that point.
Stages of the contract vs contract administration and management
|
Stage
|
Contract administration
|
Contract management
|
|
Identifying business needs
|
✅ Sometimes involved
|
✅ Yes
|
|
Drafting initial contract terms
|
✅ Yes
|
✅ Yes
|
|
Internal review & approvals
|
✅ Yes
|
✅ Yes
|
|
Negotiation with third parties
|
✅ Yes
|
✅ Yes
|
|
Finalizing terms for execution
|
✅ Yes
|
✅ Yes
|
|
Contract signing
|
🚫 Ends here
|
✅ Continues through signing
|
|
Performance monitoring
|
🚫 No
|
✅ Yes
|
|
Managing changes & amendments
|
🚫 No
|
✅ Yes
|
|
Tracking deliverables & KPIs
|
🚫 No
|
✅ Yes
|
|
Renewal or termination
|
🚫 No
|
✅ Yes
|
What skills are required for contract administration vs contract management?
Both contract administrators and managers need a solid understanding of contracts, but the skills required for each role can vary significantly.
Here’s a breakdown of what’s needed to excel in each discipline.
Skills needed for contract administration
1. Attention to detail
Administrators need to be meticulous when reviewing contract drafts, identifying inconsistencies, and making sure all terms are clear and accurate. Every clause matters, so an eye for detail is crucial.
2. Knowledge of legal terms and language
A strong understanding of legal language and contract law is essential. Administrators must ensure the contract complies with all relevant regulations and company policies before it’s signed.
3. Strong communication skills
Since administrators often act as a bridge between legal teams, business stakeholders, and vendors, they must be able to communicate effectively with all parties—clarifying requirements, explaining revisions, and keeping the process moving smoothly.
4. Organizational skills
Contract administrators handle multiple versions of a document, approvals, signatures, and deadlines. Being highly organized is critical to keeping track of all moving parts.
5. Negotiation skills
While not always a central part of the role, administrators often need to negotiate terms (or at least coordinate the contract negotiation process) to ensure the final contract reflects the organization’s best interests.
Skills needed for contract management
1. Strategic thinking
Contract managers must think long-term, considering the ongoing relationship with vendors, the business’s broader goals, and how the contract aligns with those objectives. It’s about creating value, not just fulfilling obligations.
2. Project management skills
Managing a contract involves juggling deadlines, monitoring performance, and coordinating across teams. Strong project management skills are necessary to keep everything on track and meet milestones.
3. Risk management
Contract managers must identify, assess, and address risks as the contract is carried out. Whether it’s dealing with vendor performance, compliance issues, or scope creep, being able to manage risks proactively is key.
4. Communication and relationship management
Contract managers act as the primary point of contact for vendors, legal, and internal teams. They need excellent interpersonal and communication skills to maintain strong, positive relationships throughout the contract’s life.
5. Analytical and problem-solving skills
Contract managers are constantly analyzing performance metrics, identifying trends, and solving problems that arise. Being able to interpret data and find solutions to issues is crucial.
In short:
- Contract administrators excel in detail-oriented, legal-focused tasks that prepare the contract for execution.
- Contract managers focus on strategic oversight, execution, and ongoing performance, ensuring the contract delivers value.
Contract administration vs contract management: risk management approaches
Risks are baked into every contract, whether financial, legal, operational, or reputational. And both contract administrators and contract managers play a role in minimizing it.
But how they do it, and when they do it, looks a little different.
Contract administration: front-loading risk prevention
Contract administrators deal with risk before a contract is ever signed. Their job is to identify red flags in the language, spot inconsistent terms, and make sure all necessary legal and business reviews happen. This is where you prevent risk from getting locked into the contract in the first place.
Common risk-focused tasks include:
- Flagging ambiguous or one-sided clauses
- Making sure liability and termination language meets internal standards
- Checking for conflicts with other contracts or policies
- Verifying that compliance and regulatory contract requirements are addressed
- Escalating risks to legal or leadership before signature
Contract management: monitoring and responding to risk
Once the contract is live, the contract manager’s job is to monitor and respond to risks as they emerge. That includes making sure deliverables are met, deadlines don’t slip, and vendors (or internal teams) follow through on their obligations.
Common risk-focused tasks include:
- Tracking expiration and renewal dates
- Managing scope creep and change orders
- Monitoring vendor performance and SLAs
- Ensuring compliance with key terms (e.g., insurance, reporting, audits)
- Flagging potential breaches early and coordinating a response
Together, these two disciplines form a complete risk management cycle. Administrators protect the business from signing bad contracts. Managers protect the business from stopping good contracts from failing.
How can contract administration and management work together?
Even when contract administration and contract management are handled by different people—or teams—the end goal is the same: a contract that works.
But if communication breaks down between the two, you risk mistakes, delays, or worse, a signed contract that no one can actually execute properly.
Here’s how to keep the handoff (and collaboration) smooth:
1. Clarify roles early
Start by clearly defining who owns what. Who’s responsible for collecting internal approvals? Who handles negotiation feedback from the vendor? Who tracks key clauses for compliance after signing? Don’t assume—it only leads to duplicated work or dropped tasks.
2. Use shared tools
If the administrator and manager are working in different systems, things get messy fast, especially if you’re dealing with enterprise contracts. Shared platforms—like a contract lifecycle management (CLM) system, keep everyone aligned on the latest version, status, and responsibilities. If a full CLM isn’t in place, even a shared tracker or dashboard can make a big difference.
3. Document the handoff
There should be a clear transition point once a contract is signed. A quick summary highlighting key dates, obligations, risks, and any special conditions. This helps the contract manager pick things up without digging through a 40-page PDF. Consider using a standardized "handoff sheet" or summary doc.
Even something simple like this:
- Confirm all contract terms are agreed and signed.
- Provide a summary of critical dates, milestones, and deliverables.
- Highlight any risks identified in the review process.
- Ensure the contract manager has all access to necessary systems and data.
- Schedule a meeting to review the handoff, answer questions, and clarify expectations.
💡You can even create a different handoff checklist for any type of contract you’re signing. After all, every contract type or department it’s tied to, whether sales or procurement, can require different actions and boxes to check.
4. Stay in the loop post-signature
Just because a contract is signed doesn’t mean the administrator disappears. If issues come up (like a poorly worded clause or a missed condition), the admin’s insights can be helpful. Regular check-ins between the two roles, especially during high-value or high-risk deals, can catch problems before they grow.
5. Build a feedback loop
Contract managers often learn the hard lessons: which terms cause friction, which vendors consistently miss deadlines, which clauses are misunderstood. That feedback should loop back to contract administrators so future drafts can improve. It’s how good contract language evolves over time.
Software for smooth collaboration
Technology plays a huge role in streamlining both contract administration and contract management. The right tools not only save time fighting common contract challenges, but also reduce risk, improve visibility, and make it easier to collaborate across departments. Here, two major categories of software stand out: Contract Management Software and electronic signature platforms.
Contract Management Software
Contract management platforms are designed to support the full contract lifecycle—from creation to renewal.
If you choose to use a contract management solution, it’ll help you, as a contract manager, stay on top of deadlines, performance metrics, obligations, and compliance requirements. But they’re also useful during contract administration, especially when they include features like version control, automated approval workflows, and clause libraries.
Electronic signature software
Electronic signature software is where contract administration often wraps up. Tools like Autenti enable teams to send, track, and complete signature processes efficiently and securely, with complete audit trails and version control—all online.
These platforms are essential for closing the loop on execution, making it faster to finalize deals without printing, scanning, or chasing down physical signatures.
Even bigger companies, employing abroad, requiring stricter contract security can safely use Autenti to make contract signing easier than ever. Bank Millennium signs HR documents and contracts with Autenti, allowing them to easily cover remote workers’ needs, while staying completely secure.
“With the Autenti platform, employees can sign documents remotely. This primarily applies to HR documents – preliminary contracts, employment contracts, annexes, training agreements, fuel card contracts, and decisions regarding the social fund.” Monika Ruraż–Lipińska, Head of the HR Team at Bank Millennium
Make contract administration & contract management collaboration as smooth as butter, with Autenti’s e-signing.
See exactly who signed which document, when, from what device, identify customers, vendors, employees, and most importantly—stop paperwork overflowing your archives.
Try free for 14 days, no credit card required.
