Five Reasons Why Authority Must Be Delegated in Writing to the Contract Manager No Later Than the Contract Kickoff Stage

Jim Bergman

Contract implementation is where strategic commitments meet operational realities. Yet even the most well-negotiated agreements can falter if the individuals tasked with managing them lack formal authority. The contract manager—whether embedded in procurement, operations, or program delivery—must be empowered to act decisively, escalate appropriately, and enforce obligations. That empowerment must be documented.

Delegating authority in writing to the contract manager no later than the kickoff stage is not just a procedural best practice—it’s a foundational requirement for disciplined execution. Below are five reasons why this delegation must be formalized early, with examples drawn from six distinct sectors.

1. Enables Timely Decision-Making and Issue Resolution

Execution stalls when authority is ambiguous.

Contract managers are routinely called upon to make decisions—approving deliverables, resolving disputes, interpreting scope, and escalating risks. Without written authority, they may hesitate, defer, or be overridden, leading to delays and confusion.

  • In higher education, a university implementing a new advising platform may encounter scope questions around faculty training. If the contract manager lacks authority to approve minor adjustments, implementation may stall while waiting for executive sign-off.
  • In public sector procurement, a city deploying a fleet modernization contract may face delivery delays. If the contract manager cannot authorize schedule adjustments or initiate liquidated damages, the vendor may exploit the ambiguity.
  • In healthcare, a hospital rolling out a diagnostic imaging system may need to approve calibration protocols or reschedule installation dates. Without delegated authority, clinical operations may be disrupted while decisions are escalated unnecessarily.
  • In regulated utilities, a contract manager overseeing a substation upgrade may need to approve field changes due to unforeseen site conditions. If they lack authority, crews may be forced to halt work, increasing outage risk.
  • In shared services, a procurement manager implementing a new HRIS platform may need to resolve vendor disputes over data migration scope. Without written authority, resolution may be delayed, affecting payroll accuracy.
  • In global supply chain operations, a logistics contract manager may need to approve alternate routing due to customs delays. If they lack authority, shipments may be held, impacting inventory availability.

Written delegation ensures that contract managers can act promptly, within defined boundaries, and with confidence.

2. Clarifies Scope of Responsibility and Limits of Authority

Ambiguity breeds conflict and undermines governance.

Formal delegation defines what the contract manager can and cannot do—approving invoices, initiating change orders, enforcing penalties, or interpreting terms. It protects both the individual and the organization from overreach or abdication.

  • In higher education, a contract manager supporting a grant-funded research platform must know whether they can approve subcontractor invoices or modify reporting formats. Written delegation avoids missteps that could jeopardize compliance.
  • In public sector procurement, a transportation agency must clarify whether the contract manager can authorize overtime for vendor crews or approve substitute materials. Without documentation, decisions may be challenged or reversed.
  • In healthcare, a contract manager overseeing a telehealth rollout must know whether they can approve training modules or escalate support issues. Written authority ensures alignment with clinical governance.
  • In regulated utilities, a contract manager managing a smart meter deployment must know whether they can approve field testing protocols or initiate warranty claims. Formal delegation avoids regulatory exposure.
  • In shared services, a contract manager implementing a procurement platform must know whether they can approve user access changes or modify catalog content. Written authority ensures consistency with internal controls.
  • In global supply chain operations, a contract manager overseeing a freight contract must know whether they can approve demurrage charges or adjust delivery windows. Documentation prevents disputes with finance or operations.

Clear, written delegation defines the contract manager’s role, protects organizational integrity, and enables disciplined execution.

3. Supports Auditability and Compliance

Authority must be traceable—not assumed.

  • In regulated environments, every decision must be defensible. Auditors, regulators, and oversight bodies expect to see who made what decision, under what authority, and with what documentation. Informal delegation fails this test.
  • In higher education, grant-funded contracts require documentation of who approved expenditures, changes, and deliverables. Written delegation ensures that the contract manager’s actions are auditable and compliant.
  • In public sector procurement, transparency laws require clear records of who authorized payments, scope changes, and vendor communications. Formal delegation protects against allegations of favoritism or mismanagement.
  • In healthcare, compliance with HIPAA, CMS, and accreditation standards requires traceable decision-making. A contract manager approving system access or training protocols must be formally empowered to do so.
  • In regulated utilities, environmental and safety regulators expect documentation of who approved field changes, vendor substitutions, or incident responses. Written delegation ensures that decisions are defensible under scrutiny.
  • In shared services, internal auditors expect to see who authorized vendor onboarding, catalog updates, and policy exceptions. Formal delegation supports enterprise risk management.
  • In global supply chain operations, customs authorities and trade auditors require documentation of who approved routing changes, supplier substitutions, or compliance certifications. Written delegation ensures that decisions are traceable across jurisdictions.

Auditability is not optional. Written authority ensures that contract managers operate within a defensible framework.

4. Prevents Operational Bottlenecks and Escalation Overload

Execution suffers when every decision is escalated.

Without delegated authority, contract managers must escalate even routine decisions—invoice approvals, schedule adjustments, or minor scope clarifications. This clogs executive bandwidth and slows implementation.

  • In higher education, a contract manager supporting a student engagement platform may need to approve faculty training schedules. Without authority, every adjustment may require provost-level review.
  • In public sector procurement, a contract manager overseeing a facilities upgrade may need to approve contractor access to restricted areas. Without authority, daily operations may be delayed while waiting for administrative clearance.
  • In healthcare, a contract manager managing a diagnostic equipment rollout may need to approve technician access or reschedule installation. Without authority, clinical operations may be disrupted.
  • In regulated utilities, a contract manager coordinating a substation upgrade may need to approve temporary rerouting of crews. Without authority, field teams may be idle while waiting for decisions.
  • In shared services, a contract manager implementing a procurement system may need to approve user role changes or training updates. Without authority, onboarding may be delayed.
  • In global supply chain operations, a contract manager overseeing a logistics contract may need to approve alternate carriers or delivery windows. Without authority, shipments may be held unnecessarily.

Delegated authority streamlines operations, reduces escalation volume, and empowers contract managers to keep execution moving.

5. Reinforces Accountability and Professional Standards

Authority signals trust—and demands discipline.

Delegating authority in writing affirms that the contract manager is not just a coordinator, but a steward of organizational interests. It reinforces accountability, professionalism, and ethical standards.

  • In higher education, empowering a contract manager to oversee a grant-funded initiative signals trust in their judgment and reinforces their role in safeguarding academic integrity.
  • In public sector procurement, formal delegation affirms that the contract manager is responsible for vendor performance, public transparency, and fiscal stewardship.
  • In healthcare, written authority reinforces the contract manager’s role in protecting patient safety, clinical workflows, and regulatory compliance.
  • In regulated utilities, delegation affirms the contract manager’s responsibility for safety, reliability, and environmental stewardship.
  • In shared services, authority reinforces the contract manager’s role in aligning vendor performance with enterprise goals and internal controls.
  • In global supply chain operations, delegation affirms the contract manager’s responsibility for delivery reliability, cost efficiency, and risk mitigation.

Authority is not just functional—it’s cultural. Written delegation reinforces the contract manager’s role as a trusted, accountable professional.

Conclusion: Delegation Is Not Optional—It’s Foundational

Contract managers are the linchpins of execution. They translate strategic agreements into operational outcomes, manage vendor relationships, and safeguard organizational interests. But they cannot do this effectively without formal authority.

Delegating authority in writing—no later than the contract kickoff stage—is essential. It enables timely decision-making, clarifies responsibilities, supports auditability, prevents bottlenecks, and reinforces accountability. Across sectors—from higher education to healthcare, from public procurement to global operations—the message is clear: contract managers must be empowered to act, and that empowerment must be documented.

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Published by Jim Bergman

Jim Bergman is a commercial contract professional with global experience spanning the USA, Latin America, UK, Europe, China, South Korea, Japan, India, SE Asia, the Middle East, Africa and Australia. He has worked on a wide range of direct and indirect spend categories in numerous sectors, developing a deep knowledge of services, goods and technology procurement and sales. Across this wide array of commodity and services experience, Jim has found the keys to success in maximizing value for money through customer-supplier relationships founded on innovative category management and strategic sourcing practices, key performance metrics and measures, as well as Total Cost of Ownership principles and collaborative contracting tenets. He has shared his knowledge through advisory engagements, as well as in developing and delivering training programs both on-line and in classrooms, in both open-enrollment and internal environments. Jim has assisted his clients through all phases and steps of contracting, negotiation, strategic sourcing and bidding processes, demonstrating value generation in excess of $250 million. His audiences and clients have included over 7,000 attorneys and commercial professionals students from over 1,000 corporations and public-sector entities.

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