About The Profession

Procurement and contract management are actually mirror images of each other. Both professions describe the broader process of sales or acquisition between two parties. Some objectives of buyers and sellers are distinctly different, while others are surprisingly similar. A mutually beneficial contract can often be challenging to craft. Buyers want the lowest price, whereas sellers want to maximize it. Both, however, should strive to meet the quality, delivery, and performance expectations of each other. Working together, they form a group of professionals under the "procurement" umbrella.

Procurement consists of evaluation and selection of suppliers based on availability, reliability, and price to obtain the highest quality products at the lowest price. Buyers attend trade shows and conferences and they visit suppliers' plants to examine products and stay abreast of industry trends. They must develop a working technical knowledge of the goods or services they buy. Often, they forge a strong working relationship with their supplier counterparts--the contract managers--to optimize the outcome for both parties.

Contract management is a niche within the procurement profession, but it has a very broad perspective in terms of the responsibilities assigned to a contract manager. The job scope ranges from the administrative skills of managing, organizing, and planning, to the excitement and challenge of negotiating a major contract.

Both procurement and contract management demand competence in such areas as contract law, administration, accounting, psychology, management, and planning.

What skills do you need?

A contract manager's skills are developed through continuing education and practice. A successful contract manager has developed skills in three main areas: technical, conceptual, and human relations.

Technical skills are demonstrated by competently performing the tasks required, such as preparing and issuing solicitations, preparing bids and proposals, preparing or analyzing terms and conditions, or analyzing procurement requirements and supplier capabilities. Training for these skills can be accomplished in degree, certificate, professional continuing education, or specialized programs.

Conceptual skills relate to the manner in which the contract manager visualizes the contract's organization in terms of the agency's or company's goals. These skills involve the ability to see and use the "big picture" for greater organizational and personal success.

Human relations skills focus on the "people" aspect of contract management. Effective performance requires the cooperation of many others over whom the contract manager has little or no organizational control. Dealing with government and contractor representatives from a diverse range of disciplines requires strong relational and communication skills. Many contract managers consider competency in human relations to be the most important skill for the future of their jobs and careers.

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