6.3.4 Roles involved in Contract Management

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In accordance with the internationally applied practices in contract management, in a case of large scale Projects or Projects implemented by more than one contract, the Contracting Authority as much as the Contractor (s) must define which of their executives shall assume the role of Contract Manager.

The Contract Manager on the part of the Contracting Authority is engaged exclusively with the management of the Contract (contrary to the Project Manager who is involved in the planning and implementation of the Contract scope) and more specifically:

He/she is responsible for the correspondence on contractual issues exchanged between the Contracting Authority and the Contractor.
He/she is responsible for keeping an updated file with all of the documents exchanged with the Contractor and related with the execution of the contract.
Oversees the execution of the contract.
Manages the resolution of problems and up to a point of any disputes/ disagreements with the Contractor that appear during the execution of the contract.
Manages the issues of changes in the contract
Manages the Contractor payment issues
Reports to his/her superiors any possible problems on contractual issues and asks for guidance in the decision making and implementation of specific actions.
Monitors the Contractor's performance.
He/she is responsible to establish a good spirit of cooperation with the Contractor which will lead to the achievement of the desired results
He/she is responsible for the closure of the contract.

In the majority of cases the Contract Manager and Project Manager on the part of the Contracting Authority are roles performed by the same person. This is also the practice applied in Cyprus. In accordance with the Regulation 115/2004, for each contract drafted, the General Director of the interested Ministry or the director of the Department or Service under which it falls, or the director of the independent Office or Independent Service of the Republic appoints a suitable official as the Competent Official or Project Manager, with the responsibility of monitoring and managing the contract in the context of the provisions of the contract. The Competent Official or Project Manager has also the competency to handle changes or modifications to the contract of a value that does not exceed the total amounts and respective percentages set forth in the Annex 7-15.

Based on the aforementioned and to avoid confusion in the context of this guide, ONLY the term Project Manager shall be used to cover both cases. Especially in the case of public works and given that in this sector the term Engineer or Architect is used against the term Project Manager for the person with the responsibility for managing the contract and the Project as well, wherever in this Chapter there are relevant references the term to be used shall be Engineer.

© 2007 Republic of Cyprus, Treasury of the Republic, Public Procurement Directorate
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