Definition
The specific nature and extent of contract
administration varies from contract to contract. It can range from the
minimum acceptance of a delivery and payment to the contractor to
extensive involvement by project management, audit and procurement
officials throughout the contract term. Factors influencing the degree
of contract administration include the nature of the work, the type of
contract, and the experience and commitment of the personnel involved.
Contract administration starts with developing clear, concise
performance based statements of work to the extent possible, and
preparing a contract administration plan that cost effectively
measures the contractor's performance and provides documentation to
pay accordingly.
Authorization
for execution of contracts
An individual executing a
contract on behalf of a state agency, without the authority to do so
may be personally liable for damages flowing from repudiation of the
contract. See Thomas, Richardson, Runden & Company, Inc. v.
State of Texas, 683 S.W.2d 100 (Tex. App. - Tyler 1985 writ ref d
n.r.e.). In Thomas, an employee of the Texas Railroad
Commission was found personally liable for a contract he signed that
he was not authorized to sign. The Railroad Commission repudiated the
contract and the vendor sued the State of Texas and the Railroad
Commission. The court found that the employee was liable due to the
employee's "implied warranty" of authority to execute the
contract. The court ordered the employee to pay for the value of the
services performed by the vendor and court costs.
Flowchart
for Contract Procedures
Contract Administration Operating
Procedure 54.07
Contracting Authorities and Policies Operating Procedure 54.02
Vendor
Performance Form
