Its imperative that the project manager and project team are aware of any contract agreements that might impact the project so the team does not inadvertently take action that violates the terms of the contract

Depending on the size of the organization, administering the contract might fall to someone in the procurement department. This doesn't mean you're off the hook as the project manager. It's still your responsibility to oversee the process and make sure the project objectives are being met, regardless of whether a vendor is performing the activities or your project team members are performing the activities. You'll be the one monitoring the performance of the vendor and informing them when and if performance is lacking. You'll also monitor the contract's financial conditions. For example, the seller should be paid in a timely manner when they've satisfactorily met the conditions of the contract, and it will be up to you to let the procurement department know it's OK to pay the vendor. If administering the contract is your responsibility, you might have to terminate the contract when the vendor violates the terms or doesn't meet the agreed-upon deliverables. If the procurement department has this responsibility, you'll have to document the situation and provide this to the procurement department so that they can enforce or terminate the contract.

Administering the contract is closely linked with project management processes. You'll monitor the progress of the contract, execute plans, track costs, measure outputs, approve changes, take corrective action, and report on status, just as you do for the project itself. According to the PMBOKĀ® Guide, you must integrate and coordinate the Direct and Manage Project Execution, Report Performance, Perform Quality Control, Perform Integrated Change Control, and Monitor and Control Risk processes during the Administer Procurements process.

Exam Spotlight

Project Management Made Easy

Project Management Made Easy

What you need to know aboutā€¦ 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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