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Procuring resources for a project is inherently risky especially when using external sources and suppliers. Project success is significantly influenced by the contracting strategy that is chosen and the specific contract types that are used to engage vendors. Project managers play an important role in procurement management in ensuring that procurement practices align with the objectives of the project and the requirements of project stakeholders.
What are some of the factors that should be considered when choosing a procurement / contracting strategy for a project?
What is a division of work strategy? What are the advantages and disadvantages of this approach?
What is the difference between fixed price, cost reimbursable, and time and materials contracts?
Which of the three contract types imposes more risk on the buyer? The seller? Why?
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