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Contract administrator salary is influenced by experience, education, contract type, job location, portfolio size, and company size. Experience is the primary determinant, and education plays a key role. Government contracts often pay more due to compliance requirements. Location and company size also affect salary.
There are at least six factors that affect contract administrator salary and they include experience, education, types of contracts, job location, size of portfolio and size of hiring company. The duties of a contract administrator can vary depending on the industry and types of contracts in question. Any job offer and salary determination is ultimately tied to the expected scope of work, particularly as a very broad definition of contract administration can include specialist jobs, often performed by accountants and lawyers. Certain basic realities will affect the wage offer regardless of the scope of work.
The primary determinant of a contract administrator salary will typically be experience. Contract administration is specific to the sector and is very detailed. Every industry has its own functional language, customary ways of doing business, and budgeting conventions. The more specific experience a person has in managing contracts in a specific industry, the more valuable they are to the contracting company. Major contracts with major customers have very little room for a learning curve.
Education will also play a key role in setting a contract administrator salary. Trade contracts have discrete special components. There are legal aspects, accounting components, accounting and human resources, and other types of occupational requirements. If the applicant has a law or a degree in accounting, they will usually get more than one person with extensive experience in contract administration. A person with a certificate or degree in contract administration may earn more than a person without, but not as much as a person with a professional degree.
The two distinct types of contract are private sector and government. While both types of contracts require astute administration, government contracts often far outperform private sector contracts in the large amount of compliance with government regulations that need to be managed. Government contracts also carry severe penalties for mismanagement, so dealing with them often comes at a premium.
The place of work always affects wages. A contract administrator salary in a big city often exceeds the salary offered in a small town or town. Companies set salaries based on the cost of living in the city and salary surveys that indicate the average salary range for a position in that city. Typically, there is no way to avoid this type of wage normalization.
The last two factors that will affect the contract administrator’s salary are linked. Both the size of the contract portfolio and the overall size of the company tend to have a significant impact on the salary offer. The amount of work that needs to be done will logically increase in proportion to the total amount of money being managed through the portfolio of contracts. Likewise, the larger the company, the more appropriate it is for the salary to fall at the top of a salary range, because the type of clients, the size of individual contracts, and the expected quality of work will all be greater in larger companies.
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