When working as a Project Manager in a client / vendor project delivery invariably there will always be a signed contract between the parties outlining what will be delivered, the agreed scope, proposed timelines, propped methodology and an overview of the requirements even if at a high level. Costs, payment schedules and key project stakeholders should be listed too. Please see important points below on how to manage contracts in projects.

• Make sure to read the contract thoroughly and gain a good understanding of what is being delivered.

• Use the contract to your advantage, if it’s been written clearly and in understandable language (without the legal jargon) then it will represent a reference point during the project on what is expected to be delivered.

• The contract is for both parties a security blanket as it should in theory avoid ambiguity in delivery – however one would be naive to take this as a given, experience has taught be otherwise.

• Interpretation of contracts by vendors and clients can differ and unfortunately these differences can manifest as the project develops.

• Collaboration and open non defensive discussions will aid in remedying any disagreements and avoid project impasses.

• Not all contracts are between vendor and client; they can be between different business units or a headquarters and market division, however these are not as common.

• If a Project Manager can be hired by both the vendor and client this is advantageous.

• The contract can stipulate one party leads the project management part, normally the vendor with the client acting as a backup.

• The reason being is the vendor is delivering a system and should have experience of numerous client implementations.

• The client on the other hand is more concerned with getting exactly what they agreed as per contract and as per agreed scope.

• Project management will be important to the client but the contract will be the master document that guides delivery, they will be heavily dependent on it.

• It is important for both Project Managers (assuming there are two) to sit down and break the contract into manageable segments.

• Out of this should come requirements and these should be managed via a traceability matrix.

• All requirements should be linked back to the contract and mapped to the exact point in the contract.

• By doing this and by both parties agreeing and signing off on it, it can then act as the primary source to track all the contract deliverables.

• As each phase of the project concludes and transitions into another the traceability matrix can track design, build, testing phases and ultimately full deployment.

• Contracts will contain a section on dispute management and within that there will be the different escalation levels for solving issues.

• For example, level one is Project Managers resolve, if they can’t then it moves to level two which is project sponsors, then level three is c-suite, level four is legal team.

• The contract may also contain penalties for late delivery normally financially.