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Types Of Agreement In Pmbok

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As a project manager, you need to be aware of the different types of contracts and the legal aspects of projects. Imagine that you will have to relocate a process or product to third parties or lenders in the middle of your project. What kind of contract would you use for the third party? Situations like this are the reason why project managers need to have a good understanding of many types of contracts in order to easily manage contract negotiations. A second, very interesting point was raised by a reader regarding the results of the “market conduct” process, which contributes to the “Develop Project Charter” process. The answer lies in the fact that the “project” referred to in the project charter is not the same as the project for which the buyer proceeds with the acquisition (the set), but the (partial) project assigned to the contractor (the party). That is, I think, what Mr. Fahad Usmani means when he says, “You can go for any purchase contract with the contractor that can trigger the production of the project charter,” and I agree with him, because the PMBOK mentions that the field of project management knowledge meets the needs of the parties sitting on the BOTH table pages. , although it essentially neglects the contractor`s interests. I am a contract management consultant and also a faculty and fellow of the Indian Institute of Materials Management, having been sitting on both sides of the table for more than half a century.

I insisted that contract management (which deals with specific aspects of contract management from the contractor`s perspective) should also be added as a separate area of knowledge. S.S.V.RAGHAVAN PMP There will be many contractual issues to consider. It is good to understand what these types of contracts are (and even memorize acronyms). Let`s take our example of application. If you have entered into this agreement with a CPAF contract as a buyer, you set checkpoints as part of the project`s work to verify the quality, percentage of the conclusion, etc., to determine if the premium fee is paid. It is important to remember that these premium fees are exclusively at your discretion as a buyer. We will divide our discussion on the 7 types of contracts into three main groups of contracts – fixed price, reimbursement of fees, time and equipment. Let`s take a detailed look at these three scenarios and understand the three basic types of contract. A contract is a mandatory agreement between a buyer and a seller.

It is the key to the buyer-seller relationship and provides a framework for dealing with each other. As a PMP, you are supposed to be aware of the different types of contracts and contracts to be used.

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