Identify & Apply Project Contract Conditions to Project Teams & Processes

This unit covers the importance of contracts in procurement, the risks involved, and the planning stages before designing a contract. It also discusses the hierarchical levels in contracts, review processes, and the role of the project manager in resolving conflicts. Case studies and readings are included.

Project Management
Week 6: Identify & Apply project Contract Conditions to Project Teams & Project Processes
Reading samples Learning
outcomes of the
unit
Learnings from your weekly study, experience, this and
prior unit readings and assignments
Supporting
documentation
including any
prior learning
Mandatory Readings
 Smith Chapters 8,
9, 10, 11 & 12;
 QLD Dept.
Transport and
Main Roads. 2015.
Project cost
estimating manual
 Australian
Contractors
Association (ACA)
Relationship
Contracting;
Optional Readings
 BMA's Caval
Ridge Mine;
 Adani Mining Pty
Ltd Carmichael
Coal Mine and Rail
Project;
 AS/NZS ISO/IEC
15288:2015
Systems and
software
engineering -
Systems life cycle
processes
The procurement
processes are efficiently
carried out in the
business organizations
with the aid of the
contracts. The
procurement may be
done for human
resources as well for
the non-human
resources. These
contracts also non-
ambiguously define the
relationship that shall
be present among the
stakeholders and
internal resources of
the organization. There
are certain contractual
risks that must be
identified and assessed
in advance.
Contracts must be designed only after there is adequate planning carried out
before design and development of the contract. The policies, agreements, and
terms that are listed and included in a contract shall be designed on the basis of
the results of the planning and analysis activities.
Ahimbisibwe, A.,
Muhwezi, M., &
Nangoli, S.
(2012).
Outsourced
contracts,
buyer-supplier
trust, supplier
opportunistic
behavior and
supplier
performance in
ugandan public
procuring and
disposing
entities (PDEs).
Journal Of Public
Procurement,
12(4), 435-470.
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Project Management
Reading samples Learning
outcomes of the
unit
Learnings from your weekly study, experience, this and
prior unit readings and assignments
Supporting
documentation
including any
prior learning
Case Study
 Enhanced
instructions
and grading
criteria
http://dx.doi.org
/10.1108/jopp-
12-04-2012-
b001
The main aim of any
project is to ensure that
the costs, time, and
quality are achieved.
The contracts are also
designed to fulfil the
same purpose. These
contracts may be
designed on the basis of
cost/price/rate.
The business
organizations place a
promotor at the top of
the hierarchy followed
by package and sub-
contractors.
The communication,
interaction, and
information sharing is
also done as per the
levels in the hierarchy.
It is different in the
management contracts
as these put the
primary contractor and
The planning stages shall also determine the number of contracts and the
tenders. Before the actual contractual development, there shall be a pre-
qualification stage in which the contracts shall be adequately analysed and
improvised.
Girth, A. (2014).
Strengthening
Contract
Management
Capacity to
Ensure
Accountability.
Journal Of Public
Administration
Research And
Theory, 24(3),
795-799.
http://dx.doi.org
/10.1093/jopart
/mut055
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Project Management
Reading samples Learning
outcomes of the
unit
Learnings from your weekly study, experience, this and
prior unit readings and assignments
Supporting
documentation
including any
prior learning
consultant at the same
level.
Some projects may
develop multiple
contracts while there
may be some that have
only a few contracts
defined. Risk
management is the aim
of contracts that are
defined in the projects.
These contracts include
the agreements on the
payment structures and
types that may be
different in different
projects.
A legal consent must be included by all the individuals and parties in the last and
final stage.
There shall also be inspections and evaluation carried out for the tenders and
contractors. These shall include teams of up to 2-3 members.
Mamavi, O., Meier, O., &
Zerbib, R.
(2017). How do
strategic
networks
influence
awarding
contract?
Evidence from
French public
procurement.
International
Journal Of Public
Sector
Management,
30(4), 357-369.
http://dx.doi.org
/10.1108/ijpsm-
05-2016-0091
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Project Management
Reading samples Learning
outcomes of the
unit
Learnings from your weekly study, experience, this and
prior unit readings and assignments
Supporting
documentation
including any
prior learning
The hierarchical level
determines the
authority to decide the
contractual terms for
the resources present
at the lower levels.
However, consent from
all the parties is
mandatory before
finalization.
The review process shall be done in a step by step manner and shall be
systematic so that the evaluation of all the processes and activities is done. The
technical correctness shall be validated and verified along with the compliance
checks, bid screenings etc. The results shall be documented formally and the
acceptance or rejection criteria shall be listed and described in the final
documentation.
Schuhmann, R. and
Eichhorn, B. (2015). From
Contract Management to
Contractual
Management. European
Review of Contract Law,
11(1), pp.1-21.
The Contract
department must have
at least a single
representative or
resources from all the
departments and
parties that are
involved.
Project Manager is the resources that shall be responsible for controlling these
processes. Any of the issues and conflicts shall be reported first to the Project
Manager and the manager must ensure that the resolution of these conflicts
and issues is done in a timely manner. The accountability and responsibility of
such issues will be of the Project Manager.
Rasheli, G. (2016).
Procurement
contract
management in
the local
government
authorities
(LGAs) in
Tanzania.
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Project Management
Reading samples Learning
outcomes of the
unit
Learnings from your weekly study, experience, this and
prior unit readings and assignments
Supporting
documentation
including any
prior learning
International
Journal Of Public
Sector
Management,
29(6), 545-564.
http://dx.doi.org
/10.1108/ijpsm-
10-2015-0173
References
Ahimbisibwe, A., Muhwezi, M., & Nangoli, S. (2012). Outsourced contracts, buyer-supplier trust, supplier opportunistic behavior and supplier
performance in ugandan public procuring and disposing entities (PDEs). Journal Of Public Procurement, 12(4), 435-470.
http://dx.doi.org/10.1108/jopp-12-04-2012-b001
Girth, A. (2014). Strengthening Contract Management Capacity to Ensure Accountability. Journal Of Public Administration Research And
Theory, 24(3), 795-799. http://dx.doi.org/10.1093/jopart/mut055
Mamavi, O., Meier, O., & Zerbib, R. (2017). How do strategic networks influence awarding contract? Evidence from French public
procurement. International Journal Of Public Sector Management, 30(4), 357-369. http://dx.doi.org/10.1108/ijpsm-05-2016-0091
5 of 6

Project Management
Rasheli, G. (2016). Procurement contract management in the local government authorities (LGAs) in Tanzania. International Journal Of Public
Sector Management, 29(6), 545-564. http://dx.doi.org/10.1108/ijpsm-10-2015-0173
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