In order to be effective and proficient as a Contract Manager, it requires a number of core functional competencies. 

As the position of Contract Manager is present in many different fields of the industry and commerce, one of the main requirement of a Contract Manager is to understand the industry and business they are in.  Secondly, they should have good knowledge in other related functions in their organizations such as; Accounting, Contracting, Sales, Procurement, Supply Chain functions … etc., though presence of such functions in an organization depends on the type of industry. Knowledge in relevant functions as applicable, and the functional areas would provide a strong backing for their work as Contract Managers. 

Rather than being a management position, the contract management function is a value-adding process and not many organizations approach Contract Management as a centralized function.  A typical example of decentralized contract management is having the Procurement function handle a contract up to a certain value and the Contracting function to take over high value contracts. In both the scenarios, the contracts may be turned over to project management or operations.  This approach calls for educating the buyers and the Contract Administrators on the full spectrum of their respective roles and responsibilities to enable beneficial collaboration.  Otherwise, ineffective hand-offs will preclude the continuity required to attain the original business objectives. 

In certain organizations, Contract Management is a function but without a clear position allocated to a specific individual. The function is devided among various positions under various departments.