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There needs to be someone from the Procurement/Finance and Or/Legal department in your organization that needs to take ownership of the Procurement and Contracts Process. You are responsible , as a Project Manager to deliver goods and services that may be procured through different contract types like Time and Materials, Fixed Price, Cost Plus but these need to be defined by your procurement , Legal and Finance Department
You still need to be aware of the terms and conditions in the contract like Force Majeure, Laissez Faire, Escrow etc but these can be explained to you by the experts. You also need to be mindful of the financial conditions of the contract like Payment Terms, payment frequency and milestones , type of contract - is it Cost Plus Incentive in which case you need to closely monitor if the vendor is delivering early enough to qualify for the incentive etc. Is your scope well defined , so you can use a Fixed Price Contract
Please do not sign any contracts with any external firms until you have a person from Procurement or Legal who reviews the contract and signs off on it's appropriateness
If I were you, I would highlight this as a project risk to the sponsor and not sign any contracts until i have them reviewed by the experts
Responsible lies with Procurement , Legal department. PM to ensure that nothing is missed on scope part .
As the Project Manager, I will spell out the nature of each contract needed, (i.e. Scope, constraints, type of contract desired, etc.). I will then review and collaborate with my Procurement dept./team to create the contracts to achieve the desired outcome.
Financial and Legal will conduct a final review to make sure everything is covered properly before final contracts are signed and issued.
As the PM, it is my responsibility to make sure all of the bases are covered, so any of the contract language or content that I am not up to speed on becomes my next area of research. I am fortunate to have a great working relationship with my Procurement, Financial and Legal teams and they have never hesitated to answer any questions that I have had regarding contracts. This has had an incredible impact on my knowledge base and my ability to be more effective when dealing with contracted resources.
I would add the you should have identify your risk in the project and identify what you keep, what you want to transfer etc..
Contract is the best place to improve on your risk!
Dear friends, thanks for your feedback and time.
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