Quick Definition:
Contract Management is the process of managing contract creation, execution, and analysis to maximize operational and financial performance at an organization, all while reducing financial risk.
The PM’s Role in Contracts
While legal departments handle the fine print, PMs must understand the contract’s impact on project delivery:
- Scope Definition: Ensuring the contract accurately reflects the project’s requirements.
- Change Control: Managing how changes to the contract are handled.
- Payment Milestones: Linking payments to the successful completion of project deliverables.
- Dispute Resolution: Understanding the process for resolving disagreements with the vendor.
