what is a contracts manager?
A contracts manager is responsible for drafting, executing and managing contracts for a company. That means you need expertise in contract regulations to help your employer negotiate favorable terms and conditions with third parties. You also draw up the legal documents and oversee the execution of contractual obligations by all parties.
Your duties depend on the organisation's size. For instance, contract managers are responsible for all aspects of contracts, from legal compliance to negotiations in small companies. However, large companies often have a dedicated legal team to handle legal issues and regulatory compliance. That means a contracts manager is only responsible for executing the contract terms.
what does a contracts manager do?
You can work in any industry as a contracts manager since contracts are vital for business operations. Manufacturing industries need agreements when hiring contractors, acquiring goods and employing workers. Retail sectors need contracts managers to ensure companies fulfill obligations to customers and suppliers. As a contracts manager, you encourage better functioning and improve business outcomes by negotiating favorable terms. You also evaluate the ability to meet contractual obligations and adjust your goals towards achieving the targets.
Would working as a contracts manager suit your negotiation skills? Then read on to find out what competencies and qualifications you need to thrive in a contracts manager role.
view rolesaverage contracts manager salary
According to our latest salary guide, the salary of a contracts manager in Canada varies greatly depending on industry and level of experience. With an average salary of $100,000, a contracts manager can expect an entry-level salary of around $78,000. With experience, this can rise to over $150,000 a year.
The energy industry is certainly one of the best-salaried sectors.
Contract managers receive sick pay, transportation allowances and other benefits in addition to their base salary. Some companies offer year-end bonuses or overtime pay. You may also enjoy non-monetary benefits such as vacation days.
how to increase your salary as a contracts manager
Your salary as a contracts manager varies depending on the scope of your role and industry. Contracts managers working in construction rarely earn the same amount as those in retail or manufacturing. Construction involves numerous contracts, which increases the complexity of your job. The compensation package reflects the complexity and scope of work. For instance, dealing with government contracts attracts premium pay since mistakes lead to penalties.
Large companies often pay more since they require additional qualifications and experience from contracts managers. Smaller organizations usually pay less, but the scope of work gives you plenty of experience in various aspects of contracts management. Private sectors also pay more compared to government jobs.
types of contracts managers
Some of the types of contracts managers include:
- construction contracts manager: the construction sector grapples with challenging contract management processes. As a contracts manager, you assist in planning and drafting contracts based on the regulations. You ensure a building has the necessary permissions before construction work commences.
- commercial contracts manager: businesses deal with high volumes of contracts that manage their relationships with customers and suppliers. Your job is to create and negotiate the contracts to ensure business operations run smoothly.
- manufacturing contracts manager: as a manufacturing contracts manager, you deal with complex and ever-changing regulations related to manufacturing. To minimize risks, you need to ensure adherence to the legislation when drafting and negotiating contracts. You also analyze and evaluate the execution of the contracts to ensure both parties meet their obligations when production commences.
working as a contracts manager
Contracts managers play a crucial role in ensuring stakeholders honor agreements and keep their word. Let's explore the working conditions and job outlook of contract managers.
-
contracts manager job description
Specific duties and tasks vary in every company, but the typical roles of a contracts manager include:
- drafting and evaluating contracts: as a contracts manager, you determine the goals and expectations. When the parties involved determine the purpose and requirements of the contract, you can draft an agreement. Before creating the final contract documents, you need to identify risks and help parties mitigate them.
- negotiation and execution of tenders: after drafting the initial agreement, you can use it as a basis for negotiation. Your job is to evaluate compliance with legislation and ensure the parties are comfortable with the contract terms. When the parties sign the agreement, it goes into effect, and you need to ensure they hold their end of the deal. For example, if the company awards a tender to a contractor, you need to ensure they begin their duties immediately.
- maintaining contractual records: it is crucial to keep records of every contract to ensure compliance. Your job is to maintain proper records that serve as an audit trail or evidence in case of litigation. Some companies use digital contracts management systems to manage all contracts in the company.
- renewal, revision and termination of contracts: when circumstances change and the parties want to adjust the terms, you prepare the modifications to the contract. It is also your job to keep track of lapsed or fulfilled contracts. When both parties fulfill the terms, you need to terminate the agreement. If the parties want to continue with the business, you can renew the contract for a specified period.
-
work environment
Your work is predominantly office-based as a contracts manager since you need to review and draft contracts. You also have to visit suppliers at their business when evaluating their ability to fulfill tender requirements. As a contracts manager, you work in construction industries, which sometimes requires you to visit construction sites. When you work in retail, your work involves visiting clients, customers and suppliers to negotiate agreements and evaluate execution.
-
who are your colleagues?
Depending on your employer and the industry, your colleagues might include lawyers, accountants, grant writers and operations managers. You might also be working with project managers, project director role and construction project managers, site agents and other specialists that could include, but not be limited to, quantity surveyors, senior quantity surveyor post, civil engineers, and cost consultants.
-
work schedule
As a contracts manager, you will work an average of 40 hours a week on full-time employment. That means your workday runs from 9 am to 5 pm unless you have an evening meeting with a client or last-minute changes to a contract. You also work weekends when parties can only meet to negotiate outside office hours. Part-time vacancies are rare, but some opportunities are available in consultancy companies. Freelance and short-term contracts are also available for contracts managers.
-
job outlook
The job outlook for contracts managers appears promising, with sustained demand across industries. As businesses increasingly focus on efficient resource allocation, risk management, and regulatory compliance, the role of contracts managers becomes crucial. These professionals oversee contract negotiations, ensuring favorable terms and minimizing legal pitfalls. With the expanding global market and intricate business relationships, their expertise in contract law and interpersonal communication is indispensable. As a result, the contracts manager profession is anticipated to witness steady growth, providing ample opportunities for those skilled in negotiation, legal acumen, and strategic collaboration.
-
advantages of finding a contracts manager job through randstad
Finding your contracts manager job through Randstad provides important advantages such as:
- a wide variety of training and development opportunities
- an experienced contact person to provide help if needed
- a range of opportunities in your area
- get paid weekly or monthly, depending on the job
- temporary and permanent contracts
Want a permanent contract? A temporary job as a contracts manager is often a stepping stone to an attractive permanent job. Thousands of people earn a permanent contract with great employers every year thanks to a temporary job found through Randstad. What's more, many companies recruit their permanent employees through Randstad too!
education and skills
When it comes to the educational background of contract managers, a majority of these professionals hold a minimum of a bachelor’s degree. Typically, their academic pursuits align with fields such as business administration, law, or finance. However, it's noteworthy that certain contract managers employed within in-house legal departments have additional qualifications like paralegal or legal training, which further enhance their expertise.
Aspiring contract managers should bear in mind that several prerequisites pave the way for success in this role. Many companies require prior experience in a contracts department, coupled with a solid understanding of the intricacies of the contract lifecycle. These skills are critical to effectively navigating the nuances of this responsibility.
Moreover, it's important to recognize that the demands of a contract manager go beyond the confines of a basic entry-level position. The job is a testament to its complexity and importance within the broader professional landscape. Consequently, those aspiring to a contract manager role are advised to begin their journey by seeking alternative positions within the legal or contracts department. By taking this approach, individuals can systematically hone their skills, gain valuable experience, and chart a course that will lead them to that coveted leadership position.
skills and competencies
While you need educational qualifications, most employers are interested in contracts managers with technical skills and competencies such as:
- interpersonal skills: as a contracts manager, you liaise with many people when creating contracts and negotiating terms. You also rely on the expertise of various employees in the company to develop favorable agreements. That means you need interpersonal skills to work with a team and maintain good relationships.
- communication skills: when negotiating terms or evaluating tenders, you need exceptional communications skills. You should communicate clearly to everyone, from top management to vendors and employees. Communication skills also help you in contract executions and evaluation.
- technical skills: as a contracts manager, it is important to have expert industry knowledge. The technical knowledge assists in identifying the best tenders and reviewing industry requirements in contracts. For instance, in construction, you need to know the necessary permits and the contract terms for contractors and project managers.
- attention to detail: contractual agreements may have loopholes that put the company at a disadvantage, and it is your job to identify the gaps. You need to be detail-oriented to identify unfavorable clauses or mistakes.
FAQs
FAQs about working as a contracts manager
-
what does a contracts manager do?
A contracts manager reviews or creates a contractual agreement for organizations and individuals. They also improve business outcomes by ensuring proper contract execution.
-
How much a contract manager make?
With an average salary of $100,000, a contracts manager can expect an entry-level salary of around $78,000. With experience, this salary can rise to over $150,000 a year.
-
is contracts manager a good job?
Becoming a contracts manager is a great job with a lucrative compensation package and promising career prospects. You can specialize in a particular industry and become a consultant.
-
what is the difference between a contracts manager and a project manager?
While both work on a project, a contracts manager focuses on creating and negotiating tenders and agreements for the project. A project manager controls all aspects of the project.
-
how can I gain relevant experience for a contract manager role?
You can gain relevant experience for a contract manager role by seeking internships or entry-level positions in procurement, legal departments, or project management, which provide exposure to contract drafting, negotiation, and management processes. Additionally, taking on contract-related tasks in your current role can also help you develop practical skills in this field.
-
how do I apply for a contracts manager vacancy?
Applying for a contracts manager job is easy: create a Randstad profile and search our job offers for vacancies in your area. Then simply send us your CV and cover letter. Need help with your application? Check out all our job search tips here!
meet a recruiter
Make sure your resume is up-to-date, including information about your technical skills and certifications. Then share it with us to connect with a recruiter and be matched with job opportunities.
