ABSTRACT
This chapter focuses on the nature of a claim, the attitude of the parties, and once again, the role of the contract administration function. Of all disciplines contemplated in the project management world, contract administration is the youngest and it is not yet widespread in the contracting community. To understand the background of contract administration and the history of its introduction and development in the contracting industry, one must refer to the different approach of contract economics by the project owner and the contractor. A contract is often a sort of jungle of documents, annexes, appendices, attachments, exhibits, and similar. Contract management services are often provided by specialized consultants putting their wealth of experience and record of accomplishment at the services of the company in need. Modifications to the contract, implying higher-level approval, are known as contract amendments and they have high contractual priority as they have been expressly negotiated to modify and supersede certain contractual provisions.
