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Contract Management / Administration System

With the emphasis being placed on efficiency and contestability of noncore activities, many organizations will be dealing with contractors, especially in the area of maintenance and renewal.

Asset management systems should support this contracting out process and be designed to reduce the costs to both the owner and the contractor, to ensure the product is delivered in the most effective and efficient manner.

It is important that any contract agreement highlight the principle that asset data and information remains the property of the asset owner, especially in relation to maintenance procedures.

It is desirable that contractors use the asset information systems required by the owner, or in particular provide all information required by the owner in the form desired.

The information system can support these objectives by:

  • Issuing work orders directly to the relevant contractor with all necessary data
  • Clearly identifying work within contract parameters, including class of work, work procedures, schedule of rates, materials quantities, related to contract rates and prices, any inspection, supervision or approval procedures.

By including this general functionality, the system can help the asset owners to issue and allocate the work and the contractor to record the work done and claim their payments.

This can be done without the high cost of a separate payment system.

From the owner's perspective, a performance-based random sample of approvals can be done, significantly reducing the cost of supervision of contractors.


The features or functionality that is necessary to accommodate this process is shown in the following figure:

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