Contracts Manager Average Salary and Hourly Rate in 2025
Contracts managers are responsible for overseeing the entire lifecycle of contracts within a company or organization, from drafting and negotiation to execution and secure storage. A contract manager also collaborates with various departments to streamline contract workflows and reduce risks.
Moreover, they also lead contract negotiations, manage vendor agreements, and recommend legal and regulatory compliance. In 2025, contracts managers earn an average annual salary of $140,750 or $64 per hour. Keep in mind that contracts manager salaries may vary depending on key factors such as education level, experience, geographic location, skills, and demand.
In the following sections, this guide will provide an overview of the contracts managers pay and a detailed outline of their job responsibilities, job outlook, and career trends for the coming years.
An Overview of Contracts Manager Salaries
The average salary for contracts managers in the United States as of June 13, 2025, is $147,750 per year. The salary range for contracts managers typically falls between $107,241 to $178,596, according to the latest data from Salary.com.
| Percentile | Average annual salary |
|---|---|
| 10th Percentile | $107,241 |
| 25th Percentile | $123,210 |
| 50th Percentile (Median) | $140,750 |
| 75th Percentile | $160,560 |
| 90th Percentile | $178,596 |
The U.S. Bureau of Labor Statistics (BLS) also reports that salaries for contracts managers or purchasing managers may vary depending on which industries they work in. For instance, contracts managers working for the professional, scientific, and technical services sector can earn up to $163,560, while those working on retail trade can only earn about $127,310.
| Industry | Average annual salary |
|---|---|
| Professional, Scientific, and Technical Services | $163,560 |
| Management of Companies and Enterprises | $162,920 |
| Government | $148,240 |
| Manufacturing | $132,720 |
| Wholesale Trade | $127,310 |
Contracts Manager Salary: Hourly, Weekly, Monthly, and Yearly Breakdown
The average contracts manager’s pay can be broken down into hourly, weekly, monthly, and yearly amounts. According to Salary.com, the average rate for a contracts manager in the United States is $64 per hour or $11,083 per month.
- Average salary per hour: $64
- Average salary per week: $2,558
- Average salary per month: $11,083
- Average salary per year: $140,750
As previously noted, contracts managers in the United States will find that their salary may vary due to key factors such as geographic location, years of experience, and education. These factors will be explored in detail below.
How Experience Impacts Contracts Manager Salaries
Aside from their educational background, certifications, and accreditations, contracts managers with higher levels of experience earn more than their peers most of the time. As shown in the list below, there are notable salary differences across various experience levels of contracts managers in the United States.
Based on the Salary.com data, the difference between entry-level contracts manager salaries and expert-level contracts manager salaries is $11,591. This also shows a significant gap between the intermediate-level contracts manager salaries and specialist-level contracts manager salaries, with $132,817 and $138,580, respectively.
- Entry-Level Contracts Manager: $132,031
- Intermediate-Level Contracts Manager: $132,817
- Senior-Level Contracts Manager: $135,437
- Specialist-Level Contracts Manager: $138,580
- Expert-Level Contracts Manager: $143,622
State-by-State Breakdown of Average Salaries for Contracts Managers
It can also be noted that each US state has different average salaries for contracts managers due to several factors such as cost of living, industry performance, and demand.
Based on the Salary.com data, the District of Columbia offers the highest contracts managers income in the United States at $155,840. The next ones are California and New Jersey with $155,250 and $152,560 per year, respectively. On the other hand, Mississippi has the lowest contracts manager pay with $125,520.
| State | Average Salary |
|---|---|
| Alaska | $152,360 |
| Alabama | $129,310 |
| Arkansas | $127,150 |
| Arizona | $137,150 |
| California | $155,250 |
| Colorado | $143,610 |
| Connecticut | $150,420 |
| District of Columbia | $155,840 |
| Delaware | $142,540 |
| Florida | $133,180 |
| Georgia | $135,750 |
| Hawaii | $147,110 |
| Iowa | $134,700 |
| Idaho | $131,390 |
| Illinois | $143,470 |
| Indiana | $131,390 |
| Kansas | $134,020 |
| Kentucky | $132,450 |
| Louisiana | $133,830 |
| Massachusetts | $153,180 |
| Maryland | $145,130 |
| Maine | $137,230 |
| Michigan | $138,610 |
| Minnesota | $144,030 |
| Missouri | $133,730 |
| Mississippi | $125,520 |
| Montana | $132,880 |
| North Carolina | $133,750 |
| North Dakota | $139,030 |
| Nebraska | $132,600 |
| New Hampshire | $142,290 |
| New Jersey | $152,560 |
| New Mexico | $130,360 |
| Nevada | $139,300 |
| New York | $149,630 |
| Ohio | $137,050 |
| Oklahoma | $130,140 |
| Oregon | $142,930 |
| Pennsylvania | $140,120 |
| Rhode Island | $145,930 |
| South Carolina | $131,880 |
| South Dakota | $127,910 |
| Tennessee | $131,530 |
| Texas | $137,290 |
| Utah | $134,780 |
| Virginia | $141,730 |
| Vermont | $138,150 |
| Washington | $152,610 |
| Wisconsin | $138,460 |
| West Virginia | $126,750 |
| Wyoming | $134,980 |
Contracts Manager Salaries: Top Earning Cities Revealed
The Salary.com data reveals that the top three highest paying cities for contracts managers in the United States are San Jose, San Francisco, and Oakland, all in the state of California.
| Top Paying Cities | Average Salary |
|---|---|
| San Jose, CA | $177,530 |
| San Francisco, CA | $175,780 |
| Oakland, CA | $171,880 |
| New York, NY | $163,110 |
| Queens Village, NY | $162,060 |
| Paramus, NJ | $160,930 |
Explore Contracts Manager Benefits and Perks Beyond Salary
In addition to their salary, contracts managers receive a range of benefits and rewards. According to data from Salary.com, the average total compensation includes the contract manager income with benefits such as Social Security and 401(k)/403(b) plans.
- Social Security
- 401K/403B plans
- Disability insurance
- Healthcare
- Pension plan
- Time Off (PTO)
Contracts Manager Job Description: Roles and Responsibilities
According to BLS, contracts managers or buying managers handle overseeing and managing business contracts from initiation through completion to ensure compliance, risk mitigation, and alignment with organizational goals.
They work across different industries, including construction, manufacturing, and government sectors, handling contracts related to procurement, services, and projects. Contracts managers play a critical role in safeguarding company interests, ensuring smooth project execution, and fostering strong business relationships through effective contract governance.
Here are some of the most common tasks and responsibilities of contracts managers:
- Draft, review, and negotiate contract terms to protect company interests and ensure compliance.
- Manage contract administration and monitor adherence to legal, regulatory, and company policies.
- Collaborate with internal teams and external parties to access and resolve contract issues and align obligations.
- Conduct risk assessments and implement strategies to minimize contract-related liabilities.
- Oversee budgeting, cost control, and financial aspects related to contracts.
- Stay informed on relevant laws, industry trends, and exclusive insights to optimize contract performance and opportunities.
When and How to Ask for a Raise as a Contracts Manager?
As a Contracts Manager, your role in managing contracts, ensuring compliance, and mitigating risks is vital to your organization. To earn a raise, it’s important to build your professional credibility and continuously improve your skills, demonstrating the value you bring.
Here’s a step-by-step guide to help you prepare and confidently ask for a raise:
- Build a strong educational foundation: Most contracts manager roles require a bachelor’s degree in business, law, supply chain management, or contract management. Additional coursework or certifications in contract law, negotiation, or project management can further enhance your qualifications.
- Gain relevant experience: Develop a solid track record of managing complex contracts, negotiating favorable terms, and ensuring compliance. Highlight your ability to reduce risks, control costs, and maintain strong vendor relationships.
- Earn professional certifications: Certifications like Certified Professional Contracts Manager (CPCM) or Certified Federal Contracts Manager (CFCM) from the National Contract Management Association (NCMA) validate your expertise and commitment, increasing your value to the organization.
- Request a formal meeting: Schedule a dedicated meeting with your manager or HR to discuss your compensation. This approach shows professionalism and preparation, rather than raising the topic casually.
- Present your case clearly and confidently: Emphasize your accomplishments—successful negotiations, cost savings, compliance improvements, or process efficiencies. Use specific examples and data to support your request. Be clear about your salary expectations based on market research, and maintain a positive, constructive tone.
Following these steps will help you effectively demonstrate your worth as a Contracts Manager and improve your chances of securing a well-deserved raise.
Why Does a Contracts Manager Make So Much?
A contracts manager typically earns a big paycheck because he plays a crucial role in handling and managing the contracts of all the company’s projects, partnerships, and investments which involve a huge amount of money. Contracts Managers also safeguard the company’s business interests and ensure smooth project execution, which is vital for any business’s long-term success.
This requires a contracts manager to gain the necessary abilities to hone his skills, especially in contract management, procurement, and business development to make smart and practical decisions. According to BLS, these are the important qualities that a contracts manager should have:
- Analytical skills
- Communication skills
- Decision-making skills
- Interpersonal skills
- Math skills
Moreover, certain skills and certifications can increase the earning potential of a contracts manager. According to the Real-Time Job Posting Salary Data Solution, contracts manager with customer relations and customer support can earn up to 9.72% and 8.29% more, respectively.
Other high compensation skills include:
- Presentation Software: +4.44% Salary Increase
- Procurement: +4.40% Salary Increase
- Business Development: +2.79% Salary Increase
- Request for Proposal (RFP): +2.32% Salary Increase
- Contract Negotiation: +1.97% Salary Increase
- Contract Management: +1.89% Salary Increase
The Future of Contracts Managers: Job Outlook and Career Trends
Based on the report of the U.S. Bureau of Labor Statistics (BLS), the job title outlook for contracts managers is projected to grow by 7% from 2023 to 2033. This is faster compared to the national average and translates to about 61,100 job openings every year, mainly due to contracts managers retiring or switching occupations.
The growth in employment for contracts managers is highly influenced by the demand for business development representatives and purchasing experts in the US. As long as companies are constantly looking to improve the management of their high-value contracts in huge projects and investments, the demand for contracts managers is also expected to increase.
