Question

Discuss why good contract practice is important in the project management? Describe the contract strategy that can be used to reduce some risk for the project management. Elaborate the legal and operational principles of contract that can be used for the project management

Answer 1

Good contract practice is very important in project management because they provide relief on either side. it helps in managing the risk related to procurement. A contract helps in sharing and bearing the individual responsibilities while completion of the project.

Management of the procurement can be helpful in mitigation of various kinds of risk which are faced by the project manager and there needs to be a mutual understanding between the individual contractor and project manager so that there should be a alignment of objectives in order to maximize the profit.

Legal and operational principle of contract can be used for project management through project ownership and governance processes and project management should be defined with their appropriate roles and responsibility should be fixed.