It is therefore, very important that the project managers must manager certain components of the whole project management and project life cycle in more details as compared to other components of the project. It is therefore of great importance that the project managers must find a perfect fit between the different components of the overall project.
Contract Management and Procurement management are two most important concepts of project management where project managers tend to interact with external players such as vendors, suppliers as well as regulatory authorities. The management of contract and procurement processes therefore needs special skills to fit them properly into the overall process of project management as well as project life cycles.
By law, a contract is "an agreement between competent parties, for consideration, to accomplish some lawful purpose with the terms clearly set forth" (Newell, 2005). The above definition of contract suggests that it is an agreement which is backed up by the legal consideration.
Within the context of project management, contract management is a phased process which involves different stages. Project Managers first determine the requirements of the contract i.e. what is required to be obtained and acquired to complete the project. ...