Figure Managing the project cash flow Ensuring Financial Support for the Project

During the life of the project, it is very likely that the client's or supplier's financial department will contact the project manager regarding certain financial matters. This could be to inquire or to request information from the project manager regarding

• Resource rates and bonuses allocated to project staff

• Overtime payments

• New resources hired on the project

• Cash flow projections

• Outstanding payments and purchase order documentation

• Approval of contractor invoices

• Items that are over budget

• Project work in progress

It becomes crucial for the project manager to understand the role of the financial department and the importance it plays as a support function for the project. Some financial support tasks could take considerable time to expedite and to be put into motion, and it therefore becomes necessary to know the time it takes to process. This alone will solve many of the project manager's frustrations.

PROCUREMENT OF EQUIPMENT AND SERVICES

In today's vast technological landscape, it is highly unlikely that one single company will be able to supply its own products and services for an IT solution. Some of these products or services will have to be obtained from external sources, and as such, the project manager will end up having to manage the entire process of negotiating and procuring these resources once the project is executed.

The project manager must review, negotiate, and approve all supplier and subcontractor project delivery dates and schedules in order to map them against the master project plan. The project manager is also the single point of contact for authorizing work during the execution phase. This includes conducting formal project reviews, performing ongoing risk assessments, and controlling supplier and sub-contractor activities.

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