Interactions with Contracts

As with accounting and finance, most organizations have a contracts department that does not report to the PM. Thus, a linkage has to be established with certain contracts personnel in order to understand the precise requirements of the contract, provide all the necessary contract deliverables, and, when appropriate, negotiate modifications to the contract. Various types of contracts (e.g., cost type vs. fixed price vs. time and materials) will be handled by a PM in different ways. Contract provisions may allow certain costs to be traded without contracting officer approval, or they may not. Certain contracts have limits on expenditures by category (e.g., use of travel or consultant fees), and so forth. The PM must thoroughly understand these types of contract provisions in order to effectively manage the project. The PC may also be utilized by the PM as the primary point of contact with contracts so as to conserve the time demands on the PM but still have a solid and constructive interaction. PMs who neglect this relationship are headed for trouble.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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