Find out why having a well-constructed contract is important. Also, learn about the different kinds of contracts, what their pros and cons are, and how to choose the best one.
- Compensation drives behavior, … at least that's what I was told … when I was in corporate sales. … As since compensation, aka a paycheck, … drives salespeople's behavior, … you can bet it also drives vendor's behavior. … In procurement management, contracts tie what vendors do, … to how they'll eventually get paid. … Because of this, you can expect vendors to perform … based on the terms of the contract. … This is the power of a well-constructed contract, … it drives vendor's behavior. … So you're aware of why contracts motivate vendors, … let's look at the different types of contracts you can use. … You'll find a list of the pros and cons of each … in a handout. … First, there are fixed-price contracts. … These contracts set a fixed price … for clearly defined deliverables. … They are best used … when no significant scope changes are expected. … Next, there are cost-reimbursable contracts. … These contracts reimburse the vendor … for their allowable costs, … and give them a fee on top, so they can make a profit. …
- Describe the procurement manager’s role in the procurement process.
- Explore the essentials of good communication with vendors.
- Examine the steps in a contract change control system.
- Identify risks that might arise in a project.
- Define the purpose of a closeout meeting.
Skill Level Intermediate
Project Management Foundations: Integrationwith Oliver Yarbrough44m 25s Intermediate
Project Management Foundations: Scheduleswith Bonnie Biafore2h 7m Intermediate
Project Management Foundationswith Bonnie Biafore3h 20m Beginner
What to know before watching1m 27s
1. Procurement Management Overview
2. Common Procurement Pitfalls
3. Critical Procurement Success Factors
4. Procurement Management Processes
5. How to Implement Procurements
6. Emerging Trends: Project Procurement Management
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