The project manager is essentially responsible for the contract strategy, which is developed as part of the project strategy. However, the proposed division of work, contracting arrangements, forms of contract, and bidders' lists should be developed in conjunction with the company's contracts department.
This combined responsibility of the project manager and the contracts department in the contracting process can lead to inefficiencies, delays, and disagreements and can negatively impact the project cost and schedule when there are organizational conflicts. Close coordination and effective communications must exist between all groups to ensure complete agreement and commitment to the proposed contracting program. This is particularly important in all submissions to contract committees and/or senior management.
The project manager must obtain agreement from the company's contracting department and insurance department before committing to contractual language regarding liability, indemnity, or insurance.
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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.