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THE EFFECTIVENESS OF CONTRACT MANAGEMENT AT ADOBE


MANAGEMENT INC. / BRIO TOWER CONDOMINIUM
CORPORATION, BAYVIEW INT'L TOWER CONDO-
MINIUM ASSOCIATION INC., THE FORT
TRION TOWERS CONDOMINIUM
CORPORATION

An Undergraduate Thesis Presented to the Faculty of the


College of Business and Financial Sciences
University of Makati
J.P Rizal Extension, Brgy. West Rembo, Makati City

In Partial Fulfillment of the Requirements for the Degree


Bachelor of Science in Business Administration
Major in Building and Property Management

Submitted by:
Tingzon, Stanley Renz F.
Bucol, Diosalyn
Cedillo, Connie
Dequillo, Tris Annuel L.
Vicario, Josie
Ramirez, Zyrah Mae A.

2022

APPROVAL SHEET
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In partial fulfillment of the requirements for the degree in Bachelor of


Science and Business Administration Major in Building and Property
Management, this thesis titled “ The Effectiveness of Contract
Management “

has been prepared and submitted to the


COLLEGE OF BUSINESS AND FINANCIAL SCIENCES
By: Tingzon, Stanley Renz, Bucol Diosalyn, Cedillo Connie
Dequillo, Tris Annuel L., Vicario, Josie , Ramirez, Zyrah Mae A.

PROF. ROME SHERRIFF G. MONTOYA, MBA, DBA(c)


Research Adviser
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Approved by the member of the panel on ___________ with a grade of


____.

EDUARDO A. MANAHAN, MPA


Chairman

JOHN PAUL PASCUAL DIOSDADO DELA ROSA


Member Member

DR. NEMESIO BARBOZA, DBA, PhD


Head, Building and Property Management

DR.
Dean, College of Business and Financial Science
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ACKNOWLEDGEMENT

ABSTRACT

Title: Implementation of Contract Management System: Improvement of


Securing and Monitoring Service Contracts at Fort Resident

Researchers: Tingzon, Stanley Renz F.


Bucol, Diosalyn
Cedillo, Connie
Dequillo, Tris Annuel L.
Ramirez, Zyrah Mae A.
Vicario, Josie

Degree Earned: Bachelor of Science in Business Administration


Major in Building and Property Management.

School: University of Makati

Date Conferred:
Adviser: Prof. Rome Sherriff Montoy

Certification of Originality
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TABLE OF CONTENTS
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Page
Title Page…………………………………………………………..……………….....….i
Approval Sheet………………………………..……………………………………......ii
Acknowledgement……………..………..……………………..………………………iii
Abstract………………………………………….…….……………………….……....…iv
Certification of Originality……………...…..………………………………….…..vi
Table of Contents……………...……………….………………….....................vii
List of Tables………………………………….…….………………………………..….ix
List of Appendices……………………………………….......…………………….….x

Chapter 1: The Problem and Its Background


Introduction ……………………………....……….…………………………..….…..1
Background of the Study ………....………………………………………………..2
Conceptual Framework ……………...……………….…………………………..…3
Statement of the Problem…………….......….…………………………………...3
Scope and Limitation of the Study …….……..........………………………….5
Significance of the Study ……………………………….....……………………….5
Definition of Terms …………………………..……....……………………………...5-7

Chapter 2: Review of Related Literature


Foreign Literature ……………………………………………………………..……….8-22
Local Literature …………………………….……...........…………….……………..23-32

Chapter 3:
Research Methodology ………………………...........……………..……………..33
Research Method Used …………………...….………………………………………33
Population Frame and Sampling Scheme ………....…………………………..34
Description of the Respondents ………..…………........……..………………..34
Research Instruments ………………………………....………………………..……34
Sources of Data …………………………………………………………………….…..36
Data Gathering and Procedure ……….………........……………………………37
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Statistical Treatment of Data …………………………………........……….……37-38

CHAPTER 1
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THE PROBLEM AND ITS BACKGROUND

Introduction

Contract management refers to a process of managing contracts from


customers, partners, vendors, and employees. It includes the process of
communication between both parties based on what the agreement deals with.
Contracts are an important tool for ensuring that you achieve the desired
outcomes from your business agreements, the document itself is only half the
equation. Getting the full value out of your contracts requires more than just a
well-crafted agreement that clearly spells out deliverables or services and
related terms and conditions and that has been signed by all parties. Effective
Contract management in operational property gives helps the productivity on
ways to handle better standards operation and it is also the satisfaction of both
parties that they meet the requirements and obligations of the Contract

Effectiveness of Contract Management in specific property ones applied


all the agreements reflected as effectiveness and efficiency of both parties. It
also involves building a good working relationship between customers and
service providers that will help the property to operate smoothly and lessen
problems during operations. The researchers have seen this opportunity to
further understand the process of contract management and to gain knowledge
on how property management is executed and to determine the level of
Effectiveness of Contract Management to those handling contracts in
organization.

Background of the Study


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Contracts play a significant role in client and service provider


interactions on a regular basis. It's normal in organization particularly in larger
corporations for the people best positioned to oversee contract performance to
be different from those who negotiated it. If proper precautions are not taken
to bring individuals responsible for contract monitoring up and running quickly,
this divergence could lead to even more inefficiencies. The researcher sought to
discover the Effectiveness of Contract management how they deal with issues
and challenges such rapid changes in employee behavior toward duties
allocated to them in terms of agreements of parties, How management way out
of this mess of workload from a stressful to a productive environment, Changes
in the environment such as a new method to enforce how those in positions of
authority execute the first step in maintaining job quality without startling
employees that will also help the property to operate efficiently and lessen
delaying transactions in the operation.
Researchers choose this particular topic to see the importance and
effectiveness of Contract Management in Condominiums ( xxx name of property
xxx) and develop recommendations to help the organization to improve
standards and build a good relationship with contracting parties.
The goal of these studies is to learn how Contract Management applied in
a systematic and efficient manner for each person in the organization. The
study purpose is to know the effectiveness of contract management of ( xxx
name of property xxx ) and demonstrate the strategies and techniques that
may be recommended in the result of study that might be useful to other real
estate property operations and serve as guide to the future researchers and
property managers.

Conceptual Framework
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This framework shows the overall outline of the study. It can be expressed
by the input-process-output framework (IPO)

INPUT PROCESS OUTPUT

Survey Questionnaire
Factors of Contract Statistical Treatment Effectiveness of Contract
Management Analyzing the gathered Management
data.

Figure 1
Conceptual Framework

This framework shows the overall outline of the study. It can be expressed
by the input-process-output framework (IPO)

INPUT
- CONTRACT MANAGEMENT

PROCESS
- SURVEY QUESTIONNAIRE
- STATISTICAL TREATMENT
- ANALYZE THE GATHERED DATA
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OUTPUT
- EFFECTIVENESS OF CONTRACT MANAGEMENT

INPUT (I) the input comprises the factors of Contract management


approaches such as Communication, proactiveness, tools availability, hours and
wages and work overload; the factors affecting to employees Risk Reduction
and Increase productivity, transparency, work efficiency, environments in the
property for employees and management satisfactions, and constant
improvements through seminars and training.

PROCESS (P) the process indicated the methods we are about to use to
meet the objective of the descriptive study through the gathering of data,
survey question, statistical treatment, and analyzing the data gathered.

OUTPUT (O) the output pertains to the factors that would help to
improve the level of Effectiveness of Contract Management to the Employees of
Property Management.
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Statement of the Problem

The purpose of this study is to determine the level of Effectiveness of


Contract Management. The result of the study will serve as a recommendation
to the Property management to improve on their execution in Contract
Management. Especially, this study sought answer to the following questions:

1. What is the demographic profile of the respondents in terms of:


1.1 Gender
1.2 Age
1.3 Position
1.4 Employment Status

2. What are the challenges being faced by the respondents on the


Contract Management of the property in terms of :
2.1 Flexibility of Communication
2.2 Pro-activeness
2.3 Tools Availability
2.4 Hours and Wages
2.5 Work Overload

3. What are the factors affecting the Contract Management in the


property employees in terms of the following?
3.1 Risk Reduction
3.2 Increase Productivity
3.3 Workflow Efficiency
3.4 Transparency of Contract
3.5 Work Environment
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4. What is the significance of Effectiveness of Contract Management to


the employees of property?

5. What strategic plan could be recommended to might improve the


execution and effectiveness of Contract Management of the Property?

Null Hypothesis
There is no significant effect in the Effectiveness of Contract
Management to the Employees at Adobe Management Inc. / Brio Tower
Condominium Corporation, Bayview Int'l Tower Condominium Association Inc.,
The Fort Trion Towers Condominium Corporation.

Scope and Delimitation of the Study


This research study will be conducted to determine the level of
Effectiveness of Contract Management to the Employees of Adobe Management
Inc. / Brio Tower Condominium Corporation, Bayview Int'l Tower Condominium
Association Inc., The Fort Trion Towers Condominium Corporation.

Significance of the Study


This research is made with the aim to provide information and knowledge
on determining the Effectiveness of Contract Management to the employees in
the property management. The importance of this study is to have a better
understanding of Contract Management and also its effectiveness during
administration of the Contract, if they meet the obligations, wants and needs of
both parties. The findings of this study are therefore significant because it could
benefit the following persons or group of people:

Employees of the Company - this study would potentially benefit the


employees on how they will address and respond in managing contracts.
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Units Owners - this study could help all the unit owners to have a better
quality of living in a well-managed property.
Board of Directors -the findings of this study would be beneficial to the
Board of Directors as to know the effectiveness of the contract management sto
the operation of the property.
Researchers- this study would help future researchers, particularly those
who are concentrating on building and property management who might want
to study Contract Management .

Definition of Terms
The definitions of terms define the words that will be encountered in the
study according to how it was used in the study by the researchers.
Contract- meeting of the minds
Customer- a person who pays the services
Environmental Changes- Application of new rules and regulations.
Human Behaviour - a person’s ability to communicate with the rest of
the employees at work in order to motivate each of them.
Operation-day to day activities.
Partners - Contractual agreement between two or more parties to
manage and operate a business together.
Parties-capable for all of the obligations within the contract.
Relationship- expectations for interactions in various positions within an
organization.
Security- data protection and monitoring of their management
information systems.
Service- to form relationships with tenants and to meet their service
needs.
Workflow Efficiency- it is the movement of work by the employees .
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Chapter 2

Review of Related Literature

This literature review attempts to discuss the various literature related to


Effectiveness of Contract Management . The discussion also identifies gaps left
by other researchers of similar studies. However, this study attempts to fill
those gaps so that the write-up can contribute to a new body of knowledge in
the academic world. Through this review, literature is re-packaged and analyzed
as a way of bringing new insights into the problem studied.

Foreign Literature

Contract Process and Benefits

According to Mohammed Ayedh Algarni (2021) Contract administration


relies on document-driven processes, which can be time-consuming and
inefficient in a paper-based setting. The time it takes to ratify a contract can be
just as important as the document's content preparation. The ability of a
company to provide exceptional service is harmed by slow, manual contract
processing. The contract lifespan differs from one organization to the next, and
even from one department to the next. In this era of digital transformation, the
quantity of contracts and associated papers is increasing.

Employees may save time and money with an automated, digital contract
lifecycle management (CLM), which lets legal, finance, sales, and other
professionals focus on what they do best. This chapter demonstrates how
automation may shift an organization's mindset so that contracts are seen as
opportunities for operational improvement and competitive advantage. It also
demonstrates how contract insights and dashboards may be provided by
integrating CLM with business intelligence (BI) and data analytics tools.
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Literature context for contract management has provided little work


specifically with reference to the performance of the business. However, the
influence of contracting on contract management is observed in different
studies (e.g. Anigbogu & Nduka, 2014; Chang & Liang, 2015; Broekhuis &
Scholten, 2018). The focus of their studies was on the service sector with the
consideration of customer business relationship. Data were collected through
multi method covering the approaches like documents, interviews and type of
contact between buyer and the sellers. It is expressed that contract between
the both parties provides a comprehensive way of dealing with the formal
relationship and management expertise. Selviaridis and Norrman (2015)
examined the idea of management performance-based contracts or PBC in
logistics services. After detailed review of present literature, authors argued
that limited literature had been available in this regard. Research design covers
the title of multi case method and three cases of logistic providers was selected
through purposive sampling technique. They found that PBC provides significant
path for the achievement of strategic objectives of the business with the risk
and reward sharing approach. Meanwhile, authors explained that contract
management covers the process and resource investment with the fair
incentives. K. Muhammad et al. / Management Science Letters 9 (2019) 1291.
There are also several studies contemplated the management practices through
outsourced performance based contacts (Blumenberg et al., 2009; Domberger
et al., 2000; Logan, 2000; Omizzolo Lazzarotto et al., 2014). Authors argue that
such practices are complex in nature and there is a significant need of creating
long term relationship with the business contracts and performance. Rasheli
(2016) examined the costs involved in the procurement contracts in public
sector from the perspective of the client. Using the institutional economics and
transitional cost approach multiple case study design was used and reported
the fact that high information and negotiation costs were playing major role in
the performance of the government. Meanwhile, it is also expressed that lower
level of governments at local level may face high transaction cost in all stages
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of procurement. Mchopa (2015) explained that contract management is an


important task in public procurement while taking the value of money. The
study found that contract management covers the title of quality management
of the cost, its controlling, and effective findings for the money achievement.
Pappas et al. (2019) observed the financial perspective of loan contract with the
presence of real earning management (REM). Like other measures, REM is
assumed to very much difficult to measure for the outsiders. Their study have
focused on the REM and its link with the interest rate spread and more demand
for the higher collateral. It is expressed that great REM could lead to higher
yield of bond and collateral requirements. Some other studies have also
provided their significant contribution in prevailing literature for contract
management and business practices (Kamminga, 2015). While others have
taken its idea in the field of supply chain practices (Brun & Moretto, 2012).
Besides, some studies are conducted for exploring the concept of contract and
risk management as well (Adams, 2008; Chow et al., 2015; Gao, 2015; Haapio
& Seidel, 2017; Liu et al., 2015; Mo et al., 2001; Ryall & Sampson, 2016;Simon,
1999; Zhi, 1995). Some studies have taken the idea of a contract management
system through internet and computer-based programs for the building
construction bids (Crookshanks, 2006). Besides, improving the health system
for the government through contract management is also observed and
empirically justified (Alexander & Morrisey, 1989; Goddard, 2000; Hyvönen &
Järvinen, 2006; Loevinsohn & Harding, 2005; Sackler & Levin, 1993; Soeters &
Griffiths, 2003). After detailed review of both theoretical and empirical studies,
a significant gap is observed from the context of Indonesia. A limited quantity
of work is presented in earlier studies, ignoring the interaction between the
contract management and business performance. Due to this gap in the
literature, this study has provided a managerial implication of contract
management for improved business outcomes.
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Contract-Management Capacity

While there are various definitions of contract-management capacity in the


literature, many of them do not create a complete picture of the actual scope of
managing contracts. A helpful all-encompassing definition is provided by Brown
and Potoski: Contracting is not a one-size-fits-all proposition. The success or
failure of any alternative service-delivery arrangement likely depends on how
well governments can manage the entire contract process, from assessing the
feasibility of contracting through implementation to monitoring and evaluation-
activities that require strong government contracting capacity. Governments
investing in contract-management capacity may be better positioned to harness
the promise of effective contracting while avoiding its pitfalls. The prior section
discussed some of the circumstances that influence the choice to produce a
service in house or to turn to contracting as well as the choice of which
contracting mechanisms may be appropriate. However, while this difficulty may
be external in origin, governments are not without agency. Brown and Potoski
conclude that “governments can respond to poor conditions by investing in the
managerial capacity to identify suitable situations for contracting, negotiate
strong contracts, and monitor vendor performance.”Brown and Potoski
determine three subfields of contract-management capacity that align with
phases of contracting: feasibility assessment, implementation, and evaluation
capacities, and note “[a]ll three capacities are needed for effective
contracting.”10 Yang, Hsieh, and Li build on this model by renaming Brown and
Potoski’s implementation. Capacity” to “formulation,” which emphasizes that the
first measures—assessment of whether contracting is the proper approach and
in creating and finding a vendor for the contract—both take place before a
contract is signed. Yang, Hsieh, and Li add an additional measure which they
call “implementation,” taking it to mean the government’s ability to enable
contractor success during the execution of the contract. 11 The evaluation
stage takes place last, once there is performance to measure, although for
many contracts, evaluation occurs during and not just after the contract is in
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place. This observation echoes discussion in the prior section on the importance
of government being able to effectively manage public-private relationships,
identifying it as a component of contract-management capacity. We adopt the
Yang, Hsieh, and Li approach below to organization findings from the literature
on contract management capacity. Not all measures neatly fit into this phased
approach. For example, Romzek and Johnston identify two dimensions that
correlate with better performance that are relevant across multiple phases:
“resource adequacy” and “intensive training for state contract management
staff.” First, feasibility assessment capacity (called agenda setting by Yang,
Hsieh, and Li) is defined by Brown and Potoski as “the capacity to determine
whether to make or buy the good or service (examples include hiring staff
trained in market analysis or legislative study groups to assess whether a
service or function is appropriate for contracting) process during which the
values and preferences of stakeholders are manifested and compromised.”13
Yang, Hsieh, and Li found a nuanced relationship between their agenda setting
capability and performance. Their examination of selected public administrator
self-reported data determines that increased assessment capacity is positively
associated with cost reduction but not with efficiency increase or quality
improvement. Moreover, Yang, Hsieh, and Li find that there is a time
component to management capacity, in that the cost-reduction impact of
agenda setting decreases with time.

Effect of Contract Management on Procurement Performance in


Ngos in Nairobi County

According to Judy Mawia Itumo & Dr. Karanja Ngugi (2016) The financial
year 2015/2016 disclosed that procurements amounting to Billions of monies
were misappropriated which in turn hindered from achieving value for money in
most institutions, NGOs included which led to poor procurement performance in
terms of decreased efficiency, low flexibility, long procurement cycle times,
increased supplier defect rate and decreased customer satisfaction. Contract
management is a subject in the developed world that has been found to be a
cure to procurement scandals. The general objective of the study was to
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establish the effect of contract management on procurement performance in


NGO, s in Nairobi County. Specifically the study aimed to determine the effect
of relationship management, contract administration, post contract appraisal
and contract closure on procurement performance in NGO’S in Nairobi County.
A descriptive survey approach was adopted to justify the relationship between
the independent and dependent variables. The target population was
procurement officers who are employed to work within the 288 NGOs situated
in Nairobi County. The study sampled 167 procurement officers who were
selected using simple random sampling. The study relied on primary data
which was collected using a questionnaire. Data was analyzed qualitatively and
quantitatively. Qualitative data was analyzed using content analysis whereas
quantitative data was analysed using Descriptive statistics analysis which was
done by measuring central tendencies which include frequencies, means,
standard deviations and regression. Descriptive statistics was done using the
Statistical Package for Social Sciences (SPSS). Inferential statistics which
included correlation (r) and regression (R2) through the use of Multiple Linear
Regression model was employed to establish the significance of the
independent variables on the dependent variable. The findings revealed that
contract management was a key aspect in performance of procurement among
the NGOs in Nairobi County. Through relationship management of relationship,
proper contract administration, post contract appraisal and contract closure, the
procurement process became successful and this enhanced the firm's
performance. The regression analysis revealed that relationship management,
contract administration, post contract appraisal and contract closure were
significantly and positively related to the procurement performance of the NGOs
in Nairobi County where their P-values were observed to be less than the
standard P-value of 0.05. The study concluded that as much as the contract
management aspect such as contract administration, relationship management,
post contract appraisal as well as contract closure were recognized as key
aspects in contract and procurement processes among the NGOs, many of them
did not effectively use the aspects which lead to continued underperformance of
their procurement processes. The study recommends that NGOs and other
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organizations especially in the public sector should take heed of relationship


management, contract administration, post contract appraisal and contract
closure in their procurement processes as they are the key players as much as
procurement performance is concerned.

Effectiveness in contract management in Tanzania a case study of


Tanroads

The Tanzania National Roads Agency conducted the study on contract


management effectiveness. The majority of public procurement contracts have
not been able to achieve the stated strategic purpose, which has been a long-
standing issue with contract management. This means that many procuring
organizations have struggled to handle contracts effectively and efficiently,
which prevents them from achieving the contract's intended goals. The study's
overarching goal was to pinpoint the elements that contribute to poor contract
management in public procurement initiatives that promote value for money in
Tanzania. Determine the factors influencing contract management in public
procurement for works; research contract management practices in public
procurement for works; explore how Tanzanian procurement laws are
implemented in contract management to achieve value for money for social,
economic, and political development; and demonstrate the significance of legal
professionals to effective contract management in public procurement for
works. The study used a sample of 45 TANROADS employees, including
representatives from the engineering, legal, procurement management, and
tender boards. During the study, a qualitative technique was used, but there
were also instances where a quantitative approach was applied by computing
frequency and percentages and using tabulations. The study employed a case
study methodology, with TANROADS serving as the case study. Data were
gathered using a variety of research techniques and tools, including
questionnaires, interviews, a study of the literature, and observations. The
method of data analysis employed in this study included content analysis,
frequency calculations, and percentage calculations. (2013) Samwel Marco
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The Effectiveness of Contract Management on Contractor’s


Performance

According to AKAMPURIRA BRIAN (2019) in the world of business, it is


common for an organization to involve contractors or suppliers in some way to
assist in providing service or product to meet its intended requirements. As a
result, a CM team is required to monitor the progress of the contractors.
However, very few research has been conducted in Uganda on the effectiveness
of contract management on contractor performance. As a result, it is the
primary goal of this study, which was conducted at the Ministry of Trade,
Industry, and Cooperatives. Examining the causes of poor contractor
performance, determining the effect of contract management on contractor
performance, and determining solutions to address the challenge of poor
contractor performance were all particular objectives that supported this goal..

Work Performance

Training, development and job performance are considered to be the


essential elements under industrial psychology discipline (Armstrong et al.,
2015). Performance of workers is extremely crucial for any company as it
ultimately leads to the company's success (Shaughnessy, 2017). Technological
advancements have resulted in tremendous improvements in modern economy
and lifestyles; and at the same time, it has led to an increased competition
among organizations. This has led numerous senior managers and policy
makers to emphasize rather strongly on sustaining the competitive position in
the market Hence, a suitable working condition should be established for the
employees to carry out their responsibilities by fully utilizing their potential and
at the same time delivering quality service to the customers.
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Work Conditions and Job Performance

For every business, performance has been assessed by fundamentals of


the business relating to sales, revenue or earnings Osman et al., (2016).
However, nonfinancial indicators are crucial to consider as well, for example,
investigating the performance of the business which relates to human resources
such as satisfaction, motivation, and absenteeism Nilsen & Ringholm (2019).

It is emphasized that motivation components relating to recognition at


work aid the employees to find their value in the company. This would enhance
their overall performance at work plus lead them to be satisfied. This
phenomenon is also supported by JCM that satisfaction occurs when the
working conditions encourage motivating qualities further leading the workers
to perform better at job. Moreover, as per the above discussion the subsequent
hypothesis is constructed.

Intelligent Contract Management

According to Manju Pillai, Pramila Adavi (2013). Due to the constant


increase in the number of contracts, managing them is crucial for the success of
any company operation. The traditional method of managing contracts involves
risks and chaos, including incomplete information in contracts, insufficient
delegation of authority and responsibility, fraud, theft, corruption, and other
unethical activities, communication breakdowns, and delayed financial decisions
that impede the project's progress. All of these issues are brought on by
manual intervention in managing contracts. This necessitates the use of a
strategy of contract administration that is systematic and efficient. This essay
discusses intelligent contract administration, also known as automated contract
management, which is a perfect, open, and effective method of handling
contracts. This paper speaks approximately Intelligent Contract Management
(computerized settlement control) that is an efficient, obvious and faultless idea
of dealing with contracts. This approach will streamline the commercial
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enterprise system through decreasing the time taken to create, review, execute
and approve contracts, accordingly easing sports like tracking, critical garbage
of settlement documents, and discount in disputes, decrease dangers related to
guide facts entry. Contract control is a difficulty of strategic significance to each
business enterprise and to tasks and via computerized settlement control
approach; companies can boom control, boom effectiveness, lessen value and
additionally offer strategic and aggressive advantage.

Understanding and managing contractual and supplier risk

Contractual/supplier risk management is in place with clear responsibilities and


processes, identification of who is best placed to manage risk, and supplier
involvement where appropriate. Risks are formally identified and monitored
regularly, with mitigating actions developed and implemented where possible,
and ‘obsolete’ risks removed from consideration where appropriate. Escalation
and reporting routes are in place for risk governance. Contingency plans are
developed to handle supplier failure (temporary or long-term failure/default);
exit strategies are developed and updated through the life of the contract.
NAO_ May 2022.

Development of Contract Management Strategy to Control Late


Payment in Building Projects.
According to Irwan Yunianto, Ayomi Dita Rarasati Journal of International
Conference Proceedings (10-23, 2020) Building projects with private owners
have high level of payment issues (late payment, underpayme
nt, or non-payment). The purpose of this study is to develop a risk-based
contract management strategy to avoid late payment from private owners to
contractors. The research data consisted of literature reviews, questionnaires,
and qualitative risk data analyses. The risk analyses identified 10 highest risks
as the dominant risk factors from 37 risk variables. The risk response to
dominant risk variables was used as a strategy for developing a contract
management system. Risks affecting late payment were largely due to
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contractual clause and contracting clients with less financial capacity due to lack
of analysis in the pre-contract phase.

Contract management and performance characteristics: An empirical


and managerial implication for Indonesia
According to Rashid Issa, Mustafa (2019) This study intends to cover the
relationship between contract management and performance characteristics
from the context of Indonesia. To address this objective, contract management
is observed as the main independent variable while performance through nine
items is considered as dependent variable. A questionnaire is developed
through some selected factors and distributed among various respondents,
dealing directly or indirectly with the projects. A sample of 70 respondents is
finalized with no missing values. Empirical findings suggest that for the firm
performance different variables such as nature of the solution, cost & benefit
analysis are significantly associated with the contract length. While project
delivery and project quality are negatively associated with the contract length.
Findings of the study are highly recommended for the contract managers and
similar individuals, responsible for the smooth business performance. However,
future studies can be conducted with the addition of more explanatory factors
for contract management with better sample size. Manage-rial implication of the
study defines that Government and construction companies should reconsider
the stated factors for the improved results through resolution of the conflict
with the customers, cost benefit analysis and timely delivery of the project with
budgetary compliance.

Evaluation of factors important to enhance productivity.


Productivity as a measure for output is important to industry and
academia. In this research, factors to enhance productivity have been identified
from the literature by reviewing various international and national sources to
explore this evergreen field of research that is “productivity,” which has always
been an increasingly interesting area of research for researchers over decades
or perhaps over centuries. In total, 15 number of factors have been identified to
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enhance productivity. Analytic hierarchy process approach has been


appropriately chosen to rank these factors because of its simplicity and
effectiveness. The tool has been used by taking the perception of experts from
the Indian manufacturing industry. Positive attitude and involvement of
management, proactive employees, and good working conditions have been
ranked as top three factors as per the experts’ opinion. The ranking of factors
to enhance productivity, categorization of the factors into four perspectives, and
hierarchy of perspective and action plan as a final outcome of the paper may
help academia and operations managers toward effective management of
“operations and production activities of firms/supply chains Sanjay
Kumar ,Manish Duhan &Abid Haleem |Zude Zhou (2016)

Contract management workflow methodology using semantic web


agents

Kalliopi Kravari,Nick Bassiliades Guido Governatori (2016) Since e-


Commerce has become a discipline, e-Contracts are acknowledged as the tools
that will assure the safety and robustness of the transactions. A typical e-
Contract is a binding agreement between parties that creates relations and
obligations. It consists of clauses that address specific tasks of the overall
procedure which can be represented as workflows. Similarly to e-Contracts,
Intelligent Agents manage a private policy, a set of rules representing
requirements, obligations and restrictions, additionally to personal data that
meet their user’s interests. In this context, this study aims at proposing a
policy-based e-Contract workflow management methodology that can be used
by semantic web agents, since agents benefit from Semantic Web technologies
for data and policy exchanges, such as RDF and RuleML that maximize
interoperability among parties. Furthermore, this study presents the integration
of the above methodology into a multi-agent knowledge-based framework in
order to deal with issues related to rules exchange where no common syntax is
used, since this framework provides reasoning services that assist agents in
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interpreting the exchanged policies. Finally, a B2C e-Commerce scenario is


presented that demonstrates the added value of the approach.

Flexibility in contracts and contractual practice: empirical study in


China
The aim of the research is to examine how companies prepare for
changes in business environment and networks in international business
contracts; and how flexibility is introduced and adopted in the context of
multicultural business. Our primary method is to interview managers, and
lawyers who have experience in complex international business projects. The
research mainly focuses on three different industries: construction business,
information technology, and industrial equipment and maintenance services
(e.g. automation systems). Thirteen interviews in China are conducted; then
interview data are transcribed and analysed. Several findings emerge from
analysis of the interviews. Firstly, most interviewees recognize the necessity of
flexibility in long-term international contracts in order to deal with uncertainty
and to solve disputes. Secondly, lawyers prefer rigid contract clauses and formal
enforcement mechanisms and managers prefer good personal relations and
informal enforcement mechanisms to respond to the changes of circumstances.
Thirdly, the preventive and proactive approach, especially its role in preventing
and resolving disputes between business partners, is widely recognized by
Chinese mangers and lawyers. Empirical study on the topic in other countries is
encouraged, so as to enable us to compare contracting practices of companies
in similar industries in different countries. Managers and lawyers are advised to
adopt a more cooperative attitude towards each other, and to establish more
interactive and effective communication channels. Empirical study on this topic
is rarely done. It is important both to the academic and business community to
know how flexibility is approached and dealt with in contract and practice in
China. (2015) YANAN ZHANG, RIITTA AHTONEN
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Risk Management in Project Contracts

The risk of project contracts is the uncertainty that exists alongside a


contract. It is the pressing issue for contractors to prevent and control risks as
the peculiarity of building projects brings about a series of uncertain risks. By
going through the management process of contracts for construction projects,
this thesis analyzes the sources of risks and gives ideas and suggestions for
designing effective measures to avoid project contracts risks. (August 2013)
Rong Jie Zhu Ying Peng Yang Sun.

Automated payment and contract Management in the Construction


Industry by integrating building information modeling and
Blockchain-based smart contracts

Construction projects usually involve signing various contracts with


specific billing procedures. In practice, dealing with complex contract structures
causes significant problems, especially with regard to timely payment and
guaranteed cash flow. Furthermore, a lack of transparency leads to a loss of
trust. As a result, late or non-payment is a common problem in the construction
industry. This paper presents the concept of implementing smart contracts for
automated, transparent, and traceable payment processing for construction
projects. Automated billing is achieved by combining Building Information
Modeling (BIM) approaches with blockchain-based smart contracts. Thereby,
parts of traditional construction contracts are transferred to a smart contract.
The smart contract is set up using digital BIM-based tender documents and
contains all of the relevant data for financial transactions. Once the contracted
construction work has been accepted by the client, payments can be made
automatically via authorized financial institutions. This paper describes the
framework, referred to as BIMcontracts, the container-based data exchange,
and the digital contract management workflow. It discusses the industry-
specific requirements for blockchain and data storage and explains which
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technical and software architectural decisions were made. A case study is used
to demonstrate the current implementation of the concept. Katharina Sigalov,
Xuling Ye, Markus König, Philipp Hagedorn, Florian Blum, Benedikt Severin,
Michael Hettmer, Philipp Hückinghaus, Jens Wölkerling, Dominik Groß (2021).

Renegotiations and Renewals of Public Contracts

According to Jean Beuve & Stéphane Saussier this paper examines the
impact of renegotiations on contract renewals. Using an original dataset of
procurement contracts in the French car park sector, we show that there exists
an optimal level of renegotiations that positively affects the probability of
renewing a contract with the same partner. This result holds only when public
authorities have discretionary power during the awarding procedure. Such
findings suggest that what is usually interpreted as a sign of weakness –
frequent renegotiations – might well be good news that indicates that the
contracting parties can make contracts adaptable over time (Published: 02 July
2021).

Local Literature

Demographic Profile

The improving purchasing power of young adults aged 20 to 35 years, or


the millennial, had a strong impact on the real estate high rise market—so
much so that the strategies of condo selling have changed in recent years in
favor of this influential demographic.
A review of our buyers’ profile for lots revealed an interesting shift in the
age demographic.
When it comes to lot sales, the 40-year-old and above demographic
remained the leading buyers. However, the percentage of people aged below
30 years who purchased lots had increased to 15 percent in 2017 from 5
percent in the previous year.
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Projects that contributed to this growth are those currently under


development, allowing us to conclude that these buyers are most likely young
investors who see the long-term value of owning actual land. (Davis, 2017)

The influences of contract structure, contracting process, and service


complexity on supplier performance

To build a more comprehensive understanding of factors affecting the


success of service contracting, the purpose of this paper is to investigate the
influences of service complexity, contract structure and contracting process on
the buyer-perceived supplier performance in business-to-business (B2B)
services.,
A research model is developed based on transaction cost economics and
the research on service contracting. The model is tested by the survey data
collected. Professional focus groups on LinkedIn are used to generate the list of
potential respondents (2019).

Employee Empowerment

Companies should value taking a holistic and contextualized approach to


building a culture of wellness in the workplace. It utilized the CREATE
framework to better understand the strategies that companies in a developing
country use in order to promote wellness in their organization. Findings suggest
that a myriad of strategies are available. However, culture and context should
be considered when planning strategies to implement. Given the importance of
wellness for individuals and for organizations, it is crucial that strategies be
integrated and that an overall workplace culture is created. The cultural
nuances such as stigma towards help seeking, high power distance and
collectivism that are important to consider in designing interventions.
Hechanova, (Nov. 2018).
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Improvements/ Upgrades

Structural economic reforms, along with sound macroeconomic policies,


helped the Philippine economy to grow, on average, by 6.3 percent annually
over the last decade. But sustaining and sharing the benefits of this growth
among its citizens will require policymakers to focus their attention on issues
such as costly geographical barriers to trade, high levels of poverty and income
disparities, the rise of new digital technologies, and climate change.
The Philippine economy ranks among the best performers in Asia in recent
years. Still, the economy faces constraints from its outdated and insufficient
infrastructure. According to some estimates, for example, it takes about five
minutes to drive just one kilometer in Metro Manila.
To tackle the issue, the Philippines increased spending on roads, bridges,
air and sea ports, and other large-scale projects in recent years. Public
infrastructure investment rose from an average of 3 percent of GDP during
2011–16 to over 5 percent in 2018, with the target of raising the ratio to over 6
percent by 2022. The government’s Build program includes large projects that
address major bottlenecks, focusing on transportation, water resources, and
energy. (IMF News, February 2020)

Organizational Communication Practices of a Multinational Company


According to Yazan M. Jaradat | Maria Victoria U. Sy (2012) the modern
business landscape can be characterized as complex, dynamic and evolving.
Successful companies in their respective industries, are able to adapt internally
to their external environment with the help of an effective organizational
communication framework. The implementation of such mechanism is a
tangible tool organizations can use in order to gain competitive advantage in
this new era of constant innovation and reinvention of products and services.
This study examines the effectiveness of the organizational communication
practices of a multinational corporation and how the various components of the
firm benefit significantly from the utilization of effective organizational practices.
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The organizational communication practices are clustered as: source of


information, preferred mode of communication and delivery of information.

Contract Specificity, Contract Violation, and Relationship Performance


in International Buyer-Supplier Relationships

This work examines contractual governance in international buyer-supplier


relationships by investigating the linkages between contract specificity, contract
violation, and relationship performance as well as the roles of contract monitoring and a
country's institutional factors (i.e., country business risk and country global. The
findings, based on a survey of international buyer-supplier relationships, provide new
insights into a contract specificity → contract violation → relationship performance
model. For example, the results indicate that contract specificity is not directly related to
contract violation but, rather, that country-level factors moderate the effectiveness of
contract specificity (i.e., contract specificity is more effective in suppressing an
international buyer's contract violation if the buyer is from a country characterized by
low business risk or high country globalization). The results also demonstrate that
contract monitoring can mitigate the negative association between contract violation and
relationship performance (2015) Griffith, David A., and Yanhui Zhao.

Employee Engagement and Job Satisfaction

This study seeks to determine the relationship between employee


engagement and job satisfaction using survey methodology which includes one
construct for employee engagement and four constructs for job satisfaction,
namely, career development, compensation and benefits, relationship with
management, and work environment. This study confirms that there is a
statistically-significant relationship between employee engagement and job
satisfaction. Ang, M., &Rabo, J., (2018).

Service Contract Monitoring and Evaluation Manager


Under the direct supervision of the UNFPA Country Representative, and
guidance of Assistant Representative and Operations Manager, the Monitoring
and Evaluation (M&E) Manager leads the substantive contribution to the Senior
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Management Team on effective planning, formulation, quality assurance,


monitoring, and regular results reporting of UNFPA Country Programmed for the
Philippines 2019-2023, as well as evidence generation, knowledge management
and communications related to UNFPA activities in the areas of sexual and
reproductive health and rights, adolescents and youth, gender-based violence,
population and development, and humanitarian. The M&E Manager supports
UNFPA representatives with analysis and assessment of relevant political, social
and economic trends related to UNFPA’s mandated areas of work. S/he leads
UNFPA inputs to the UN Country Team on the monitoring and evaluation of the
UN-wide Partnership Framework for Sustainable Development (09 Jun 2019).

Designing financeable ancillary services revenue contracts in


developing economies: Learnings from the Philippines
Increasing variable renewable energy penetration, climate change, and
global uncertainties will make it harder to stabilize and balance power systems.
This situation will be especially challenging for developing economies with
limited capital and institutional capacity, poor infrastructure, and rapid economic
growth. Using the Philippines as a case study for a developing economy, the
paper identified chronic underinvestment in the supply of ancillary services that
play a crucial role in balancing energy supply with demand and building grid
resilience. To diagnose the cause, the paper created a novel dataset with all
ancillary services revenue contracts in effect at the end of 2019 and analyzed
their key terms and conditions. The paper concludes that these contracts are
not conducive to financing due to short durations, low and soft buying
commitments, exclusive focus on incumbent versus new entrants, hour and
season constraints, and a poorly implemented remuneration methodology. The
literature rarely analyzes this topic from a financing perspective and at this level
of detail. Revenue contracts need to switch to long-term, firm, and technology-
specific cost recovery mechanisms with new entrants, to incentivize financing.
Storage technologies such as batteries and hydropower should be prioritized,
followed by gas turbines. These changes will result in a more secure, resilient,
and affordable power system. (Jose Barroco) Energy Policy 152, 112218, (2021)
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Facility Maintenance Best Practices


The objective of the maintenance plan is to sustain asset reliability and to
improve its availability. The plan should include the necessary maintenance and
service-type actions needed to detect potential failures before they create
unscheduled downtime. In general, maintenance means to hold, keep, sustain
or preserve the building or structure to an acceptable standard, in which
acceptable standard is defined as one which sustains the utility and value of the
facility. While maintenance management should properly be regarded as
describing how a system of maintenance effort could be organized to deal with
the problems of building maintenance as a whole. (Atalian Global Services,
August 2019.
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Chapter 3
Research Methodology

Research Method
The research used the descriptive - survey method. The descriptive
method used in the study is to identify the Effectiveness of Contract
Management in Adobe Management Inc. / Brio Tower Condominium
Corporation, Bayview Int'l Tower Condominium Association Inc., The Fort Trion
Towers Condominium Corporation.

Research Method Used


This research study will use a quantitative method, the researchers’
utilized quantitative method to gather quantifiable information to plan
certainties and reveal designs in research. In the form of survey data, the
researchers used it as a main source of gathering statistical reviews and
numerical data to be analyzed, the researcher used this method by utilizing a
questionnaire checklist as a major instrument in gathering information and
collecting the necessary data for study.
Descriptive research is used to describe a situation, subject, behavior, or
phenomenon. It is used to answer questions of who, what, when, where, and
how associated with a particular research question or problem. Descriptive
studies are often described as studies that are concerned with finding out “what
is”. Descriptive methods will help the researchers to determine the adequate
interpretation of gathered data from the employees. .

Population
The population of the said condominiums are total of 86 that is
composed of (employees) a sample of 100 is derived using simple random
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sampling. The researcher chose this form to identify the effectiveness of


contract management in the following properties.

Description of the Respondents


The primary characteristics of the respondents of the (name of property)
are the following; length of stay (3 months to 5 year) Gender, Age (18 above -
below 60). These standard characteristics were established by the researchers.

Instrumentation
The researchers used the survey form to gather data. The survey
questionnaires were given to all employees in order to evaluate their contract
management that was used by the employees to determine their opinion and
gather relevant information concerning the effectiveness in contact
management. In assessing employees in implementation of contract
management system, the following Likert Scale was used:

Likert Scale
It is involved in the study that consists of questionnaires. It is the most
widely used approach in scaling responses on the survey questionnaire
research. When responding to a likert questionnaire item, respondents specify
their level of agreement or disagreement on a symmetric agreed or disagree
scale of a series of statements. We made a 4-point Likert Scale to compute the
respondents answer to the questions.

Level of Agreement(4)
4- Strongly Agree
3- Agree
2- Disagree
1- Strongly-Disagree
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Table I
Verbal Interpretation
Verbal Interpretation Point System Range
Strongly Agree 4 3. 26 – 4.00
Agree 3 2.51 – 3.25
Disagree 2 1.76 – 2.50
Strongly Disagree 1 1.00 - 1.75

Verbal Interpretation
The survey is composed of questions that will help us to measure and
determine effectiveness of Contract Management at (name of property) which
is a basis of the respondent to answer the questionnaire using a 4-point likert
Scale in Table I & II. The table I& II show the point of scale value and
description of the liker Scale system.

Data Gathering Procedure


The Researcher's used survey form questionnaires to gather important
data from the respondents in Fort Resident. The Researcher's will ask the
availability of the respondent phone call and email if the property manager of
(respondents) confirmed the Researcher's request. The Researcher's will ask
the property managers available time to conduct the study. The Researcher's
waiting for the response of the property manager to appoint a specific time and
date to distribute the survey questionnaire about the effectiveness of contract
management. The Researcher will gather data and use it as a reference to their
study only.

Statistical Treatment of Data

The researchers used collection of data by questionnaire as their primary


source of data. According to Sandy Mckee (2015) a questionnaire is a series of
questions used for gathering information that is used to benefit a single
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individual. While more than one individual might complete the questionnaire,
the responses are not aggregated for analysis.

A survey, on the other hand, is the process of gathering information for


statistical analysis to benefit a group of individuals. The responses are
aggregated to draw a conclusion. Put another way, a survey is the process of
collecting and analyzing the data, where the questionnaire is the set of
questions used to gather the information.

The researchers decided to use Slovin’s formula in identifying the samples


of primary respondent size which represents the entire population of (Name of
Property) participating in the study. The researchers will be able to determine
the sample size of the study based on the number of populations in each
property.

With the advice of our statistician, we used the following formulas as the
appropriate statistical tools needed for the study.

The following are statistical tools used to in this study;

1. Slovin’s Formula

n = N/ (1+Ne2),

where;

n= number of Respondents

N= total population

e= margin of error

Where;

n=110/ (1+110 x .05)

= 70.9677419355 (71 Respondents)


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2. Frequency Distribution was used to know the answers of the


respondents based on the minority and majority. This was computed based on
this formula:

Frequency Distribution=n/T*100%

Where;

n= number

T= total number of respondents

3. Percentage was utilized in presenting the demographic profile of the


respondents and computed based on this formula:

Where;

P= percentage

F= frequency

N= number of respondents

4. Weighted Mean

This was used to interpret the degree of importance of each item in the
questionnaire. The weighted mean was used by multiplying each value to the
appropriate weight factor and the product will be summed up and divided to the
total respondents:

Where:

X= Weighted Mean

f= Frequency

x=Raw Score; n= Number of respondents


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5. The Chi-Square (X2) test

This is used to determine the significant effect of employee relation


management: Basis for effectiveness of contract management (name of the
property). The formula is:

X^2=∑▒((OF-〖EF)〗^2)/EF

where X^2= Chi square test value

OF= the observed frequency

EF = the expected frequency


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EFFECTIVENESS OF CONTRACT MANAGEMENT AT Bayview Int'l Tower Condominium


Association Inc., The Fort Trion Towers Condominium Corporation,Abode Management
Inc. / Brio Tower Condominium Corp.

SURVEY QUESTIONNAIRE

I. Direction: Please write the information needed inside the table below.

NAME (OPTIONAL)

GENDER

AGE

POSITION

CIVIL STATUS

EMPLOYMENT STATUS

II. Direction: For each statement please put check (/) for your corresponding answer.
The table below serves as a guide with interpretation on the provided scale.

Verbal Interpretation Point System (Scale)

Strongly Agree 4

Agree 3

Disagree 2

Strongly Disagree 1
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STRONGLY AGREE DISAGR STRONGLY


AGREE (4) (3) EE (2) DISAGREE
QUESTIONS (1)

2.1 FLEXIBILITY OF COMMUNICATION

1.

2.

3.

4.

5.

2.2 PRO-ACTIVENESS

1.

2.

3.

4.

5.

2.3 TOOLS AVAILABILITY

1.I am satisfied with manual


handling of contract for
securing and monitoring.

2. I'm not satisfied with


manual handling of contact
because it can increase my
stress.

3. I like the way we handle


our contract documents.

4.For me manual handling


of contracts is much better.

5. I believe changing new


tools for securing and
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monitoring contracts is a
good idea.

2.4 HOURS & WAGES

2.5 WORK OVERLOAD

1. For me manual
management of contract
affect my free
time/workload..

2. For me manual
management of contract is
time consuming.

3. For me manual
management of contract
keeps me frustrated
everyday.

4. For me manual
management of contract
affects my performance.

5. Instead of resting, I'm


still thinking about the
safety of the contract that
we managed.

3.1 RISK REDUCTION

1. I always used to keep the


contract locked up in the
safe area.
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2. I believe providing extra


copies helps me to
eliminate risk.

3. For me manual
management of contract is
better especially in facing
natural disaster.

4. I believe A contract
doesn't have to be
completely breached for
damages to occur.

5. For me Poor contract


management often results
in a prolonged contract
turnaround process. 

3.2 INCREASE PRODUCTIVITY

1.

2.

3.

4.

4.

3.3 WORKFLOW EFFICIENCY

1. I Believe Contracts
between employee and
employer are of the utmost
importance.

2. I Believe Employees
should be well aware of
what constitutes adherence
to the terms of their
contract with respect to
their performance. 

3. For me  it is so
important to have signing
capabilities as part of your
contract management
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process.

4. I Believe Employees
should do well to keep the
above contract
management
considerations and
recommendations in mind. 

5.For me The foundation of


a good contract is clarity.

3.4 TRANSPARENCY OF CONTRACT

1. 

2.

3.

4.

5.

3.5 WORK ENVIRONMENT

1.

2.

3.

4..

5.

III. Direction: Please answer the following questions in your own ideas and opinions
on how you interpret the given question below.
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1. What is the significance of Effectiveness of Contract Management to the Employee of
property?

2. What are the strategic plan could be recommended that might improve the execution and
Effectiveness of contract Management of the property?

Thank you for answering, God bless!


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