Introduction
Contract management is a crucial process that involves administering and monitoring the performance of a contract to ensure that both parties comply with the terms and conditions of the agreement. The process of contract management involves various competencies that a contract manager should possess. These competencies are essential for practical project and supply chain management, including human relations, conceptual, and technical competencies. The purpose of this research paper is to explore the importance of technical competency to contract managers. The research objectives include determining how technical competency leads to the effective execution of contracts and identifying the career advantages of managers with technical competency over those who lack it. This paper will first provide an overview of contract management before discussing the competencies of a contract manager. It will then present the research objectives and provide background information. Next, it will define the topic and explain it in detail. The paper will then defend the position on the subject, present the findings and conclude by providing recommendations for future research.
Definition and Overview
Contract management involves the administration of contracts from the start of negotiations to the end of the contract’s performance. The process involves various activities, including contract negotiation, drafting, execution, and monitoring the contract’s performance. The strategy aims to ensure that both parties comply with the agreement’s terms and conditions and that the contract’s objectives are achieved (Bals, 2019). Contract management competency is crucial for practical project and supply chain management. It ensures that contracts are administered efficiently and that the performance of the contract meets the parties’ expectations. The importance of contract management cannot be overstated. It enables organizations to mitigate risks and avoid legal disputes, leading to cost savings and increased efficiency.
Competencies of a contract manager
A contract manager should possess various competencies to administer the contract efficiently. These include human relations, conceptual, and technical competencies (Topcu, 2021). Human relations competency involves communicating effectively, building relationships, and resolving conflicts. A contract manager should be able to establish and maintain effective working relationships with stakeholders, including suppliers, contractors, and project teams. Conceptual competency involves analyzing complex situations, identifying patterns and relationships, and developing strategies to address issues. A contract manager should be able to understand the contract’s objectives and interpret the terms and conditions of the agreement. Technical competency involves applying technical knowledge and skills to contract management. A contract manager should be able to understand the technical aspects of the contract and ensure that the contract’s performance meets the technical requirements.
Purpose and objectives of the research
This research aims to explore the importance of technical competency to contract managers. The research objectives include determining how technical competency leads to the effective execution of contracts and identifying the career advantages of managers with technical competency over those who lack it. The research aims to provide insights into the importance of technical competency and its impact on contract management.
Background
Effective contract management is essential for businesses to achieve their goals, mitigate risks, and avoid legal disputes. The process involves various competencies that a contract manager should possess, including human relations, conceptual, and technical competencies (Ganesan, 2019). Technical competency is particularly crucial, as it enables contract managers to understand the technical aspects of the contract and ensure that the contract’s performance meets the technical requirements.
The importance of technical competency in contract management must be considered. However, there is a need to explore this topic further to understand its impact on contract management fully. Therefore, this research aims to investigate the importance of technical competency to contract managers, how it leads to the effective execution of contracts, and the career advantages of managers with technical competency over those who lack it.
Definition of the Topic
Contract management is administering and monitoring a contract’s performance to ensure that both parties comply with the terms and conditions of the agreement (Cox, 2019). Technical competency in contract management involves applying technical knowledge and skills to the process. It enables contract managers to understand the technical aspects of the contract and ensure that the contract’s performance meets the technical requirements.
The competencies of a contract manager include human relations, conceptual, and technical competencies. Human relations competency involves communicating effectively, building relationships, and resolving conflicts. Conceptual competency involves analyzing complex situations, identifying patterns and relationships, and developing strategies to address issues. Technical competency is crucial for effective contract management and is the focus of this research.
Previous works on this topic have highlighted the importance of technical competency in contract management. However, there is still a need to explore this topic further to understand its impact fully. This research aims to contribute to the existing knowledge on this topic by identifying the career advantages of managers with technical competency over those who lack it and providing insights into the importance of technical competency in contract management.
Explanation of the Topic.
Problem statement.
While human relations and conceptual competencies are vital for contract management, technical competency is critical for ensuring that the contract’s performance meets the technical requirements. Despite its importance, the research on the importance of technical competency in contract management is limited. Therefore, there needs to be more understanding of how technical competency leads to the effective execution of contracts and the career advantages of managers with technical competency over those who lack it. This study addresses this gap by exploring the importance of technical competency in contract management.
Research questions
- How does technical competency lead to the effective execution of contracts?
- What are the career advantages of managers with technical competency over those who lack it?
Defending my position on the topic
How Technical Competency Leads to the Effective Execution of Contracts
Technical competency plays a crucial role in the effective execution of contracts. It refers to the ability of individuals or teams to understand and apply technical knowledge, skills, and expertise to carry out a particular task or project successfully. Technical competency is essential in contract execution as it helps ensure the work is completed on time, within budget, and to the required quality standards (Ibbs, 2019).
Effective execution of contracts requires a thorough understanding of the technical aspects of the project. Technical competency enables individuals or teams to understand the project requirements, specifications, and design plans (Al-Momani, 2019). This knowledge helps them to develop a detailed project plan that outlines the tasks, timelines, and resources required for the project. Technical competency also helps individuals or teams to identify potential risks and develop risk mitigation strategies, which are critical to successful contract execution.
Technical competency also plays a significant role in selecting subcontractors or vendors. Individuals or teams with technical competency can evaluate potential subcontractors or vendors based on their technical capabilities, experience, and reputation (Halim, 2018). This evaluation ensures that the subcontractors or vendors selected have the technical knowledge and expertise to execute the contract effectively.
During contract execution, technical competency is essential for monitoring and controlling the project. It enables individuals or teams to track project progress, identify variances, and take corrective action to ensure the project stays on track (Kastner, 2020). Technical competency also helps individuals or teams manage project resources effectively, including personnel, equipment, and materials, to ensure the project is completed within budget.
Technical competency is also essential in ensuring quality control during contract execution. Individuals or teams with technical competency can develop quality control plans that outline the project’s required quality standards. They can also perform quality control checks to ensure the work meets the required quality standards.
In short, technical competency is critical in the effective execution of contracts. It enables individuals or teams to understand project requirements, select the right subcontractors or vendors, monitor and control project progress, manage resources effectively, and ensure quality control. Technical competency is essential for the successful execution of any contract and plays a vital role in achieving project objectives.
Career Advantages of Managers with Technical Competency over those who Lack it
Similarly, Technical competency is a critical skill set that can give managers a significant advantage over their peers who lack it. Technical competency refers to the ability of an individual to apply their technical knowledge, skills, and expertise to a particular field or industry. Managers with technical competency can leverage this skill set to enhance their careers in several ways.
Firstly, managers with technical competency can make informed decisions (Park, 2018). They can understand technical details and data, analyze and interpret them, and make informed decisions based on that information. This ability to understand technical details can give them an edge over other managers who may struggle with understanding technical data, making better decisions, and finding solutions to problems.
Secondly, technical competency enables managers to communicate effectively with their team members (Swann, 2017). They can communicate complex technical information in a way that is easy to understand, which helps to build trust and credibility with team members. They can also provide guidance and support to their team members in a manner that is relevant to their job functions, which helps to ensure that their team members are equipped with the knowledge and skills they need to perform their tasks efficiently.
Thirdly, managers with technical competency can better understand their clients’ or customers’ needs and requirements (Park, 2018). They can communicate with clients or customers in a way relevant to their technical needs, which helps build trust and credibility with them. This understanding of technical needs can also help managers to develop products and services that are better suited to the needs of their clients or customers.
Fourthly, technical competency can lead to innovation. Managers with technical competency can identify new opportunities for their organizations by leveraging their technical expertise (Swann, 2017). They can identify gaps in the market and develop new products or services to address them, leading to increased revenue and growth for their organizations.
Fifthly, technical competency can lead to career advancement. Managers with technical competency are highly sought after by organizations in technical industries (Park, 2018). They can take on leadership roles in technical departments, such as research and development, engineering, and product development. They can also become subject matter experts in their field, leading to recognition and career advancement.
In summary, managers with technical competency have several career advantages over those without it. They can make informed decisions, effectively communicate with team members and clients, identify new opportunities for their organizations, and lead technical departments. This skill set is highly valued in technical industries and can lead to career advancement and recognition. Therefore, managers should invest in developing their technical competency to enhance their careers and achieve their professional goals.
Conclusion
In conclusion, technical competency is a crucial aspect of contract management that plays a significant role in ensuring the effective execution of contracts. Contract managers with technical competency can identify potential issues and risks, work with technical experts to resolve technical issues, and ensure that the contract’s performance meets the technical specifications. Technical competency also provides career advantages, leading to better contract performance, increased efficiency, and cost savings. Therefore, organizations should invest in developing the technical competency of their contract managers to achieve their goals, mitigate risks, and avoid legal disputes.
Future research recommendation
Based on the research, several recommendations for future research can be made. Firstly, future studies could investigate the relationship between technical competency and contract performance. This could involve examining the impact of technical competency on the quality of work delivered, the level of customer satisfaction, and the overall success of the contract. By doing so, researchers can provide a more comprehensive understanding of the importance of technical competency in contract management.
Secondly, future studies could explore the most effective ways to develop technical competency in contract managers. This could involve examining the training programs, certifications, and educational qualifications, most effectively enhancing technical competency. Additionally, researchers could examine the relationship between technical and other competencies, such as human relations and conceptual competencies, and how they can be effectively integrated.
Thirdly, future studies could investigate the impact of technological advancements on technical competency in contract management. With the increasing use of technology in various fields, it is essential to understand how this impacts the technical competency required for contract management. For example, using artificial intelligence and automation in contract management may change the technical requirements for a contract manager, and understanding this change is crucial for developing effective training programs.
Fourthly, future research could explore the relationship between technical competency and contract manager performance. This could involve examining how technical competency impacts job satisfaction, performance evaluation, and promotion opportunities. Understanding the career advantages of managers with technical competency over those without it is essential in ensuring that organizations invest in developing this competency.
Lastly, future studies could examine the impact of cultural differences on technical competency in contract management. As contract management often involves dealing with stakeholders from different cultural backgrounds, it is essential to understand how this impacts the development and application of technical competency. For example, different cultures may have different expectations and approaches to contract management, and understanding these differences can help organizations develop more effective strategies for managing contracts.
In conclusion, contract management is a crucial process that requires various competencies, including technical competency. Future research can contribute to the existing knowledge on technical competency by exploring its impact on contract performance, effective ways to develop this competency, the impact of technological advancements, the relationship between technical competency and contract manager performance, and the impact of cultural differences.
References
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Topcu, Y. I. (2021). Competencies of contract managers: A systematic review. International Journal of Project Management, 39(2), 212–223. https://doi.org/10.1016/j.ijproman.2020.09.006
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