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• Payment system Sellers like to be paid when they have completed their obligations. How the sellers are paid is controlled by the payment system, which includes interaction of the project manager and the accounts payable department. The performing organization may have strict guidelines for how payment requests are submitted and approved and how payments are completed. On larger projects, the project management team may have specific procedures for submitting the payment requests.

• Claims administration Uh-oh! Claims are disagreements between the buyer and the seller usually centering on a change, who did the change, and even if a change has occurred. Claims are also called disputes and appeals, and are monitored and controlled through the project in accordance with the contract terms. The contract can, and usually does, determine the path to resolution, which may include arbitration or litigation to resolve the claims between the buyer and seller. No fun.

• Records management system Guess what this system does. Yep. It records and organizes all of the documentation of the contract, the related communications, the work results, and performance of the vendor. The records management system is part of the project management information system.

• Information technology Who's administering a contract manually? Information technology (IT) can help the project manager, the project management team, and the vendor efficiently abide by the terms of the contract and keep the project moving forward. For example, IT can help the project manager build the information recorded in the records management system.

• Buyer-conducted performance reviews The buyer has to confirm that the seller is living up to the terms of the contract. Specifically, the buyer reviews the quality of what the vendor has created, the cost of what's been created, and if the vendor is on schedule. All of these items are documented in the terms of the contract—no fudging from the vendors is allowed.

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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