Purchase Solution

Contract Types in Project Management

Not what you're looking for?

Ask Custom Question

Scenario:

American Property Development Corporation (APDC) a designer and developer of outdoor shopping malls and small office complexes has decided to standardize their project management practices and processes across the national organization. The goal is to standardize on one single project scheduling tool, and have the tool installed and to be operational within 90 days. To this end they are forming a central Project Management Office (PMO). Until now, project managers (there are 40 presently on staff distributed all over the USA and Canada) have been able to use whatever scheduling tool they liked, within their budget constraints. They have also been able to buy equipment and engage contractors at will. The PMO will be determining one scheduling tool that all PMs will be expected to use, exclusive of any other scheduling tools. The PMO will also develop and implement a standardized procurement process. Since the PMs are located across the USA and Canada, a web-based solution seems likely to be the most successful tool.

Solution:

What types of contracts would be best suited for the below situations considering this project. Provide reasons for selections.

- Hiring technicians to install and configure the software for your environment
- Hiring a training entity to teach the student PMs the mechanics of using the new tool
- Buying a new server and software to run the tool and house the project database
- Hiring tool usage experts to transfer knowledge to the student PMs about the use of the tool on the job for the first 60 days after going "live"
- Plan for the removal and disposal of the no longer to be used scheduling tool software and hardware.

Word document, 850-1200 words, APA format references.

Purchase this Solution
Solution Summary

This solution discusses the different types of contract types in project management.

Solution Preview

Introduction
The type of contract plays an important role for the project is one of the most important elements, which should be considered by the management in an effective manner. It is responsibility of the project manager to ensure that the selected type of contract is best fit for the purpose of the project. In the contract selection it should also be considered that place of execution, remuneration are defined properly and in an effective manner. The services under the contract should also be defined clearly. The project manager should also ensure the involvement of the time scale of completion under the contract. The focus on the type of contract is important as it determines the compensation and scope of the project, which is the most essential part of the project management (Schwalbe, 2006). A project plan includes various types of situations, which involves different types of contracts. The project manager should also choose the types of contract on the basis of situation and project requirement. Inclusion of different types of contracts provides more flexibility to the organization and also reduces the amount of risk.
Contract Types

The APDC includes several situations and it should use different type of contract according the situations. Following are the situations and best suitable contract for these situations -

1. Hiring technicians to install and configure the ...

Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Operations Management

This quiz tests a student's knowledge about Operations Management

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

View More Free Quizzes
Related BrainMass Solutions

  • Quality Improvement Paper for Toyota Motor Corporation

    by the management in an effective manner.

  • Contract types

    What are some of problems associated with selecting the wrong contract type? Procurement is a major activity in project management.

  • Contracts

    489961 Different Types of Contracts that Project Managers Use How many types of contracts are used in project management, and which ones seem most fair and lucrative? Are there any that are more risky than others?

  • Different Aspects of Government Contracting

    Understanding the type of contract you are working under or to use on a project is vital to contract management. Different circumstances require different types of contracts.

  • Importance of Project Management and Outsourcing for Information

    - Discuss types of software available to assist in project procurement management.

  • Comparing E-Procurement Management Process

    Involvement of various types of vendors- The vendor plays a very important role in the process of contract management in Kentucky. They are the ones, who procure the goods and services to different entities.

  • Degree of control over changes, for outsourced work

    Usually for externally outsourced work, there are two types of contracts namely fixed price contract and cost-reimbursable contract (Wienclaw, 2008).

  • A Discussion On Project And Contract Managers

    Contract Manager Contract managers manage every feature and stage of the contractual agreement, which includes the creation of different types of contracts to meet legal, business and all other contractual activities in a company.

  • Contracting

    Firm Fixed Price contracts are said to be some of the simplest and most common contracts used in project management. They are normally used in situations where "cost uncertainty is commercially within certain limits."

View More Related Solutions