What is Contract Administration in Renovations?

If you’re planning an extension or major refurb, you might have encountered the term contract administration: one of the many management processes and options involved in renovations. Contract administration can be incredibly beneficial in keeping projects on track and to standard, but there are also many other routes you could take to achieve this. In this article we explore:

• The definition of contract administration
• What a contract administrator is responsible for 
• The differences between contract administration and project management 
• How much you might pay for contract administration 
• Whether or not you need contract administration
• What your other options are 

What is contract administration?

Contract administration is the process of managing the building contract between the homeowner and the builder. A contract administrator’s role is to ensure your project stays on track, within budget and meets all pre-agreed specifications. 

A good contract administrator will:

• Manage the contract terms between both parties, ensuring that the homeowner and builder stick to the agreed scope of work, timeline and payment structure
• Conduct regular site visits to monitor progress and quality
• Document and cost any variations to the original plan and make sure they’re approved before further work continues
• Verify that work is completed to the agreed standard before authorising payments
• Act as an impartial party to mediate disputes between homeowners and builders if necessary, potentially preventing costly legal fees
• Oversee final sign-off and completion, ensuring that all snagging issues are resolved

Is contract administration the same as project management?

Many homeowners confuse contract administration with project management, and for good reason, as there’s often overlap between these roles in practice. But in purist terms they are not the same thing. 

Project management typically focuses on coordinating builders, managing material deliveries, scheduling work and ensuring quality execution. Contract administration specifically handles payments and invoices, contract compliance and ensuring the builder and homeowner adhere to agreed terms. 

The waters can get muddy on smaller renovations – with fewer professionals involved – where project managers are often asked to take care of contract administration tasks as well. Terminology also plays a part, as many people (including in the industry) use project management as a catch-all term for any oversight role in building.

The benefits of professional contract administration

1. Accountability: Contract administration brings structure and formal process to your renovation, ensuring all obligations are fulfilled 
2. Financial protection: A contract administrator verifies work quality before payments are released, protecting your investment
3. Peace of mind: Know that any issues that arise during the project will be dealt with at that moment in time
4. Time-saving: You can focus on enjoying the transformation of your home while the contract administrator takes care of the details

The cost of contract administration

Contract administration costs in London vary based on project size, complexity and the professional you choose to handle these services. 

Here’s a breakdown of what you might expect to pay:

Percentage-based fees: 2.5-3.5% of the total construction cost is common for contract administration services when provided by architects or dedicated contract administrators

Fixed fee arrangements: £5,000-£15,000 for smaller projects, scaling up for larger renovations (above £750,000)

Do you need contract administration?

The biggest benefit of contract administration is that it brings a huge amount of accountability into the process, hence the larger your project value, the more worthwhile it is. Contract administration is a significant added cost, however. 

For extensions under £300,000, the cost of contract administration often doesn’t feel worthwhile to homeowners. Many choose to handle these duties themselves or rely on their builder’s project manager to cover the basics.

For medium-sized renovations, some homeowners ask their architect to fulfil the contract administrator role for an additional fee, though this is outside of their usual job spec, and they often prefer focusing on the design aspects. 

For large projects (over £750,000), a dedicated contract administrator becomes increasingly more common and valuable.

How The Page can help you decide if you need contract administration 

We understand that different renovations require different levels of management. Our builder matching process helps identify whether your project needs dedicated contract administration or if a builder with strong project management skills might be the best fit. 

For example, for a straightforward side return extension and flat refurbishment, we might match you with a hands-on builder who can both execute the work and offer practical interpretations of the designs. This approach saves you money while maintaining quality.

We also serve as a neutral party if disputes arise, helping mediate between homeowners and builders before issues escalate. While we take no formal liability, our early intervention often leads to successful resolution, benefitting both parties.

Get matched to the right builder for your project with The Page

The Page is a free London-based renovation coaching and builder matching platform. We provide homeowners with a renovation roadmap: achieve your dream space with clarity and bespoke support throughout the process, transparency on budget and real market costs, and the expert workmanship of our Pagers. Pagers are the hand-picked, hands-on builders we work with. Highly vetted, skilled, and experienced, with tight-knit teams, their lean businesses equal top-quality work for a fair price.

Thomas is our in-house renovation coach. He intimately understands the renovation process and project-specific challenges – he’s helped over 1,000 Londoners renovate with confidence. Whether you’re transforming your kitchen into a hosting haven or adding an extension to maximise family time, Thomas is here to signpost you at every stage of your project so you can make informed decisions. From budgeting and sourcing fittings, right through to the pinch-me moment when you’re raising a toast to your new space, he’s here to help. 

The result? Confidence in your investment and a home you love.