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 favourable 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, contracts 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 fulfil obligations to customers and suppliers. As a contracts manager, you encourage better functioning and improve business outcomes by negotiating favourable 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.
average salary of a contracts manager
According to ONS, a contracts manager in the UK earns an average salary of £42,001 per year. At an entry-level position, your starting salary is £30,000 a year. As you gain experience, your salary goes as high as £60,000. Contracts managers enjoy health allowances, transport allowances and other perks on top of the base salary. Some companies offer end-year bonuses or pay for overtime work. You can also enjoy non-monetary benefits like 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 organisations 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 minimise risks, you need to ensure adherence to the legislation when drafting and negotiating contracts. You also analyse 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 honour agreements and keep their word. Let's explore the working conditions and job outlook of contracts managers.
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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 fulfil 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.
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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 fulfil 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.
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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 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.
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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.
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job outlook
Becoming a contracts manager gives you promising opportunities for career growth. You can move to top managerial positions like operations manager, project manager or human resource manager. Since it is possible to work in various industries, you have specialisation options in different sectors. Contracts managers specialise in civil and structural engineering, construction management and quantity surveying in construction.
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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. Every year, thousands of people earn a permanent contract with great employers thanks to a temporary job found through Randstad. What's more, many companies recruit their permanent employees through Randstad too!
education and skills
There are several routes for joining the contracts manager career, including:
- university degree: you can pursue a foundation degree, Higher National Diploma (HND), or an undergraduate university course. Your course should cover contracts law. Some of the courses to pursue include contract management or business management. If you want to be a contracts manager for the construction industry only, a course in construction management or building studies is a great start. For the foundation degree and HND, you need 1 or 2 A-Levels, while an undergraduate degree requires 2 or 3 A Levels.
- apprenticeship: you can enrol for a higher apprenticeship in contracts management or construction management. You need 4 to 5 GCSEs or 3 A Levels for the apprenticeship. Aside from the coursework, you need to work 30 hours a week.
- work experience: to get a contracts manager job, you should have work experience in monitoring and negotiating contracts. You can gain experience through internships or working as a contracts assistant.
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 favourable 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 unfavourable clauses or mistakes.
FAQs
FAQs about working as a contracts manager
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what does a contracts manager do?
A contracts manager reviews or creates a contractual agreement for organisations and individuals. They also improve business outcomes by ensuring proper contract execution.
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how much do contracts managers make?
Contracts managers earn an average of £42,001 per year. However, they can earn up to £60,000 with experience and additional qualifications.
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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 specialise in a particular industry and become a consultant.
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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.
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do you need a JD to be a contracts manager?
While you don't require a Juris Doctor (JD) law degree to become a contracts manager, you need experience in the technical aspects of agreements. Familiarity with negotiating and reviewing contracts increases your competitiveness.
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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!
