Business Law 531 Learning Team Reflection Week 4

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Learning Team Reflection Week 4 Esther Calice Law 531 - Business Law Robert A. Zigmond, Facilitator University of Phoenix October 29, 2012 Contract Administration plan involves developing a tool for monitoring a company’s performance and compliance to the contract developed between both parties. This paper will address how development of a contract administration plan affects a company’s business, as well as does the company I work for subscribes to such an activity. A contract is a binding agreement between two parties or more (Luther, 2012). The parties can be government and business entities or individuals (Luther, 2012). During contract negotiations, one party offers to complete specific actions in consideration for payments from the other party or parties (Luther, 2012). A contract administration plan helps your business manage a contract successfully (Luther, 2012). A contract is drawn up to create the guidelines for a business relationship (Anderson, 2012). When you abide by the terms of your contract, you reap the benefits that it has to offer (Anderson, 2012). But poor contract administration can cause you to violate terms of your contract, which can lead to penalties, fines and a potential lawsuit (Anderson, 2012). Each move made with a contracted entity should be dictated by good contract management to avoid the high cost of the contract penalty clause (Anderson, 2012). As I stated in other papers, I am employed with the Upper Darby School District Transportation Department. The transportation department uses an outside contractor to inspect all the school buses that provide transportation to the many students in the community. The district requires that all buses be inspected yearly to adhere to their policy. The district employs their own mechanics to maintain the buses, if a bus does not pass inspection; it has to be put out of

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