Architectural & Engineering (A&E) Contract Management : Approaches to Contracting : Centralized Contracting

Centralized Contracting

When contracting is centralized, a single organizational entity is responsible for the entire contracting process. The Office Chief or manager is accountable to senior management for all contracting activities. Contracting processes are typically standardized and uniform across all projects.




Economies of scale, increasing efficiency and effectiveness.

A single department is responsible, thus increasing management control.

Reduces duplication of effort, yielding reduced costs, especially in receiving and inspection costs.

Centralized contract staff are specialized and can take advantage of market conditions.

Contract Manager (CM) is better able to deal with consultants because consultants have fewer people to call on.

Potential bottlenecks when requisitions are received sporadically, especially at the end of the fiscal year.

Does not consider the special needs of the Project Manager (PM).