The purpose of the article is to implement the characteristics of the administrative contract as a component of the system of public administration tools. It is determined that the system of tools for the implementation of functions by public administration bodies must meet the requirements of efficiency of settlement of management tasks, mobility of implementation of management decisions, accessibility of administrative procedures, and openness of regulations and administrative acts. The system of tools of public administration includes decisions, actions or omissions of public authorities and local governments, which have fundamental legal significance and consequences for individuals. It is emphasized that the implementation of the concept of «good governance» must comply with the democratic principles of building the rule of law, the achievement of which requires the use of the system of tools defined by current legislation. The components of the system of public administration tools include bylaws (actually identifying them with regulations), administrative acts, administrative agreements, administrative acts and acts-plans. The normative-legal character of the administrative agreement is determined, which to some extent identifies it with the normative acts of the subjects of power, emphasizing the bilateral and multilateral nature of such relations. It is substantiated that administrative contracts have similar features that are similar to other instruments of public administration, in particular, the need to conclude them in accordance with the established procedure, aimed at satisfying subjective public rights, and so on. It is established that the distinctive features of an administrative agreement are its voluntary nature of adoption, bilateral and multilateral nature of the regulation of public relations, and one of the parties to the agreement is always the subject of power. It is concluded that in the implementation of administrative- contractual relations there is a situation of legal equality of its parties, so the mechanism for ensuring its implementation is specific. It is concluded that an administrative agreement is a public accession agreement, the content of which is the implementation of management functions related to the provision of public services, ensuring the efficient use of public property between the subject of power at the initiative of a non-governmental entity. It is substantiated that in the current conditions in order to ensure the availability of legislation, as well as to avoid the situation of emergency accumulation of an array of regulations, it is proposed to supplement the draft Law of Ukraine «On Administrative Procedure» with the following provisions: «administrative contract implementation of management functions related to the provision of public services, ensuring the efficient use of public property, concluded between the subject of power at the initiative of a non-governmental entity.