REPORT
By Mauricio Lopes
International Correspondent
São Paulo, Brazil
The Relationship Between Project Management and Contract
Administration in Engineering & Construction in Brazil
Managing projects in complex sectors, such as engineering and construction, requires the integration of several disciplines and knowledge areas. One of these essential disciplines is contract management, which acts as the formal, legal link that regulates the relationships between all parties involved. This article explores the close relationship between project management and contract administration, highlighting their pillars, phases, and challenges, based on the Construction Extension to the PMBOK® Guide.
Project Management and Contract Administration Definitions
According to the PMBOK® (Project Management Body of Knowledge), a project is a temporary endeavor undertaken to create a unique product, service, or result. It is characterized by its timeliness, specific objectives, well-defined scope, and unique results. Project Management, on the other hand, is the application of knowledge, skills, tools, and techniques to project activities to meet their requirements.
In the project management context, contract administration refers to the set of processes and activities involved in managing contracts signed for a project execution. The Construction Extension to the PMBOK® Guide 2017 defines contract administration as the process used to ensure that all contractual terms and conditions are met by the parties involved throughout all phases of the project life cycle.
In engineering and construction projects, where there is a multiplicity of suppliers, contractors and subcontractors, contract management becomes a critical element to ensure that the project’s objectives are achieved without financial deviations, missed deadlines or legal conflicts.
Contract management is particularly relevant to procurement, as it constitutes the mandatory interface between the organization and suppliers. However, it is not limited to this area alone, as it requires integration with scope, costs, schedule, communications, and risk management, among other aspects.
The 2007 version of the PMBOK® Construction Extension had four specific knowledge areas (environment, health/safety, claims and finance management). Later, with more recent developments, claims management was grouped within the procurement area, highlighting its procedural relevance within contract administration.
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How to cite this work: Lopes, M. (2025). The Relationship Between Project Management and Contract Administration in Engineering & Construction in Brazil; Project Management Report from São Paulo, report, PM World Journal, Vol. XIV, Issue XI, November. Available online at: https://pmworldlibrary.net/wp-content/uploads/2025/10/pmwj158-Nov2025-Lopes-project-management-update-from-Brazil-report.pdf
About the Author
Maurício Lopes
São Paulo, Brazil
Maurício Lopes, PMP is a Project Management Specialist, PMP certified in 2000. He is a civil engineer with MBA in Project Management and was one of the founders of the São Paulo PMI Chapter and Financial Director, Administrative Director, member of the Steering Committee from 1998 to 2003. He was vice-coordinator of the Project Management Division of the Engineering Institute of São Paulo from 1998 to 1999. Since 2004 Maurício Lopes has been speaking in project management courses for CPLAN, FATEC, INPG, IETEC and FIA. He has 20 years of experience in project management with main focus in the engineering & construction area.
Currently, he is associate director of M2L Project Management (www.M2L.com.br), a company specialized in project management consulting and implementation, operating in over 50 large engineering & construction projects. Maurício Lopes is author of articles for Revista Grandes Construções, a magazine specialized in engineering & construction, and he has the main characteristics related to project management – lean, practical and systematic ways. Mauricio is an International Correspondent for the PM World Journal in Brazil.
Mauricio can be contacted at mauricio.lopes@M2L.com.br.
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