Contracts Engineer Job Description and

salary details
Contracts engineers can work in various settings, including consulting
and construction companies, or vice versa. Working as a self-employed contract
engineer and being paid for each finished job is another alternative. Some went
out on their own or with partners to start their engineering consultancy.

A number of them work in architectural firms as well. Contracts Engineers can

also work in concrete construction, timber framing, etc. They generally do
work that involves renovating buildings or changing their uses, such as from an
office to a shop or a residence.

Contracts engineers must be able to read and comprehend complicated

technical drawings and be well-versed in the legal ramifications of building
projects.

To appreciate what a contracts engineer performs, you must first comprehend

what the contracts department does. It’s not about getting into the department;
it’s about working successfully and making a name for yourself. Before you do
anything else, you must be interested in working for the same company.

A contracts department’s job is divided into various sub-divisions. To work in

the department, you must be familiar with material and labor costs. Material
specifications, activity durations, cost constraints, contractor and vendor
information Working on a project site will offer you a taste of everything. You
must understand execution, billing, procurement, and vendor agreements,
among other things.

What does a Contracts Engineer do?

Contracts Engineers are engineering experts who oversee projects and ensure
that the contract conditions meet all clients’ needs. Their key responsibilities
include developing, implementing, and reviewing contracts and ensuring that
best practices are followed on any particular project, and making all updates
available to all project participants.

They also advise technical professionals on various goods and applications,

manage subcontracted labor and suppliers, and address client grievances. They
must deal with difficulties that could jeopardize the project’s start and finish
dates, contract payment, invoicing, non-chargeable charges, and labor or
equipment prices.

A contracts engineer’s basic roles include the following:

 Carry out adequate contract appreciation and verify that

contractual terms are followed:
Contractors are usually given a hard copy of the Contract Document, thousands
of pages long. It is impossible to search the entire document for key terms such
as variations/payments/advances, etc.
As a result, a Contracts Appreciation Document is required. Make a note of all
the important clauses and organize them into several schedules. This makes it
easier to locate essential clauses when they are needed.

 Recognize risks and devise risk-mitigation strategies:

Detailed risk analysis is carried out at several stages of the project cycle, such
as
 a. pre-qualification,
b. tendering/bidding,
c. project planning and procurement,
d. execution and monitoring,
e. project closure and claims,
f. project operation and maintenance, and so on.

 Develop and sustain client relationships:

Even if you have a valid claim, your client may refuse to accept it. You can’t
accomplish anything without the help of your clients. As a result, we keep a
positive relationship with the client.

 Ensure that work is measured, billed, certified, and collected in

a timely and accurate manner:
It is necessary to maintain track of the interim payment schedule. Check the
deductions (Taxes, Interests on Advances Taken) and advances (Material
Advance, Mobilization Advance, and so on) and the Bank Guarantee expiration
details. Steel, cement, labor, gasoline, and other commodities escalation
calculations Deductions for principal and interest on RA Bills.

 Ensure claim and variation identification, documentation, and

submission.
In this section, you must refer to all relevant documents and IS codes to locate a
loophole in the contract document and claim additional time and expenses.

 Ensure documentation and preparedness for Dispute Review

Boards and arbitration:
In this situation, all documents must be readily available before the arbitrator,
or it may backfire.

 Prepare contractual letters, have them authorized by the

Project Manager, and send them to the client, subcontractors,
government agencies, and other parties.
It takes a long time to write an extension of time letter because it must address
all of the project’s requirements.

 Finalize subcontractor engagement:

Create subcontractor work orders, finalize their rates and scope of work, and
guarantee validation of subcontractor bills under contract requirements,
including material/quantity reconciliation using SAP.

 Assuring that various contemporaneous records are maintained

appropriately by various departments following contract
stipulations.
 Recording roadblocks and rescheduling physical and financial
milestones using MSP per the delay analysis

What is Contracts Engineer in Construction?

A contracts engineer is responsible for analyzing, developing, and negotiating
construction contracts on behalf of their employer. They collaborate with
architects, engineers, and other subcontractors to ensure that the project runs
smoothly and on time.

Duties and Responsibilities of Contracts Engineer

Overall duties and responsibilities of a Contracts Engineer are divided into six
phases.

1. Preparation to Execute Contract:

o Understand contractual terms and conditions, methodology, the
scope of work, compensation schedule, project milestones/critical
path, and contract administration requirements before executing the
contract.
 o All appropriate contract management and administration procedures
are in place.
Define procurement and logistical deliverables and put them
together.
o Ensure that the contractor’s monitoring tools are properly placed for
planning and that qualified procurement and contracting personnel
are available to execute contracts.
o Collaborate with project managers and others to ensure that
objectives are accomplished, that Company decisions are made
quickly, and that necessary notices are communicated.
o Before making promises, ensure that document review and approval
protocols are followed and implemented according to the Company
Authority framework.
o Keep track of the project’s progress and delivery deadlines.
2. Contracts Management & Administration and Performance
Monitoring:
o Assume the lead role in day-to-day management, administration,
and compliance with the terms and conditions and achieve a
functional Contract interface.
o Systematically and efficiently manage contract execution and
analysis to maximize financial and operational performance while
minimizing risk.

3. Assist with contract execution and administration, which includes:

o Determining the contract’s key performance criteria.
o Coordinate contract performance meetings, including participation
in contract/contractor performance monitoring meetings, supplier
performance consequence management, and regular supplier
performance reports.
o Before starting physical work, gather contracts, performance
securities, and insurances that are current and lawful.
o Manage post-award matters such as contract value utilization,
revisions, amendments, contract claims, contract extension or
renewal, and the close-out process of open PO processes (on paper
and ERP system).
o Keep track of any deviations, revisions, or amendments during the
contract’s implementation to make handling any potential claims
easier.
o Contract-related administration in general.
4. Contractor Management and Performance:
o Manage contractors and ensure that all contractual responsibilities
are met, including identifying risks and managing performance.
o Ensure that contractors’ subcontracting arrangements are supported
by written subcontracts, and only hire a subcontractor who
possesses the requisite abilities and resources to safely complete the
task within the scope of the subcontract.
o Assures that all internal departments are aware of the contractual
requirement.
o Keep an eye on job commitments and compare them to the contract
price and project budget.
o Regular variation management; review variation requests and assist
with variation processing, including the formalization of variants;
offer administrative support to the Project Manager, and create a
variation report.
Compare contractor payments to claims for work in progress and
project milestones.
o Respond to questions, address contract issues, and oversee the
resolution of disputes.
o Formalize/Issue Company Notices of Acceptance/Rejection that
may result in additional expenses, time extensions, contract
violations, and any associated follow-up matters with the contractor
until the project is completed.
o Ensure that all actions related to contract close-out are completed on
time.
o Ensure that all SCM-related internal and external reports are
submitted on time.
5. Procurement Governance, Compliance, and Controls:
o Implement authorized SCM Policies & Procedures and guarantee
that the job is carried out in a regulated way.
o Preserve high ethical standards and fairness in procurement
activities, and strive to maintain and improve the procurement
process’s integrity and tight confidentiality of procurement
documents.
6. Cost Management Initiatives:
Continuous improvement in procurement and supply chain management
significantly impacts total profitability.

Skills required to become a Contracts Engineer

 Contracts Engineers have general management qualities, such as
operating with integrity, organizing employee workloads, utilizing
sound judgment, driving for results, and focusing on client needs.
 They can also communicate with customers and other personnel
inside the organization, and they’re in charge of attending regular
contract meetings to determine project status and conditions.
 They should be able to manage and exceed annual financial targets;
maximize gross profit margins on individual contracts, and manage
financial and monthly equipment purchases to avoid stock holding.
 Candidates should have a thorough understanding of suppliers’
installed systems, stay current on technology advances in our
business, and stay current on environmental changes in our
industry.
Essential Qualification required to become a Contracts
Engineer
 After graduating with a bachelor’s degree in civil engineering, you
should pursue a master’s degree in construction management from a
reputable government college or NIT or a postgraduate course in
advanced construction management from an institute like
NICMAR.
 You should also have at least 1 or 2 years of project site experience,
preferably on infrastructure projects such as metros, tunnels,
highways, and bridges.
 So, with 1 or 2 years of Project Site experience and post-graduation,
you’ll be able to understand the fundamental actions that transpired
over the project’s lifespan.
 Experience leading a contracts team on various projects across
several locations;
  Solid understanding of contractual Terms & Conditions and
Commercial Contract Law.
 Thorough understanding of the General Conditions of Contract for
Civil Works (GCC CW) and the FIDIC Contract Conditions
(FIDIC) Red and Yellow Books from 1999.
 MBA or other advanced contract management degree (s) preferred
 Prepare and consolidate contract papers and ensure submission to
the customer before starting the job.
 Demonstrate expertise in the performance of such commercial and
contractual obligations.
Salary details of Contracts Engineer
Contracts Engineer salary in India ranges between ₹ 1.6 Lakhs to ₹ 11.1
Lakhs, with an average annual salary of ₹ 3.0 Lakhs.

The average Contract Engineer salary in the United States is $69,515, but the
salary range typically falls between $61,853 and $78,410.

Final Thought
A Contracts Engineer is typically an entry-level role in a construction or other
company’s Contracts Department. Typically, this type of work is classified as
an office job. Before quoting, it also includes some site visits to the project
location.

In the construction sector, this is the most intriguing and hardest profession.
Calculations performed by the Contracts Engineer at various project stages
determine the project’s overall status.
If you have a thorough understanding of the fundamentals of civil engineering,
legislation, and calculations, this could be a wonderful career choice in the
construction sector.