Negotiating the Contract

After selecting the vendors for each of the items that needed procurement, Jen worked with the vendors to negotiate the contract. Each contract was relative to the type of work or item to be procured. For example, the architectural firm initially wanted a cost plus percentage of costs contract. This would have caused the final price for the project to fluctuate based on the costs of the materials throughout the project.

Jen negotiated with the seller to use a fixed-price and incentive fee contract for the project. This contract ensured that the vendor would receive a guaranteed fee for the project work, but also created an opportunity to gain a bonus if the contracted work was completed ahead of schedule.

The contracted work for the marketing was assigned to a time and materials contract. This contract type allowed the selected marketing firm to bill for time invested in the project's marketing creation, the Web site, and marketing literature. The contract did, however, include a not-to-exceed fee for the entire project work. Jen and the seller agreed that reports on the expense of the work would be provided every two weeks. This would allow Jen to track the marketing expenses against the deliverables the seller was creating.

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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