Join Bob McGannon for an in-depth discussion in this video Using payment approaches, part of Project Management Foundations: Procurement.
- It can be fun searching for a new car,…doing a bit of research online,…and test driving different vehicles…to see if they fit you appropriately.…Actually getting that shiny new vehicle…can be quite enjoyable.…There is that potentially painful part…in the middle, however and that is paying…for your precious new acquisition.…However, if you planned for that,…understand your payment terms,…and know for certain you can afford the vehicle you bought,…it can be much less traumatic.…
So it is with buying items for your project.…Part of your procurement analysis should be determining how…and when payments will be made to your vendors or partners,…so you don't feel undo pain.…The most common payment approaches are:…payment upon a delivery of a product,…payment on a given schedule, for instance, every two weeks,…payment on a regular schedule with variable payments due…being reconciled periodically,…such as quarterly or twice a year,…and lastly, payment on milestone,…when a predetermined piece…or subset of a total deliverable is produced and verified.…
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- Define project procurement.
- Distinguish when to use vendors and partners.
- Compare and contrast building versus buying.
- Identify different types of contracts.
- List types of payment approaches.
- Test your market.
- Build and use a request for information (RFI).