PMI Ghana – Ho branch holds its maiden virtual meeting
Mr. Anthony Havor delivered on the topic Delivering projects with effective contract management tools
The topic was chosen by the Volta Branch of PMI Ghana Chapter with the objective of enriching the skill-set of PMI Members on the choice of contract forms and their application to contracts on projects they manage. The sole idea was to enable PMs and PMI Members understand the important role the choice of appropriate contracts play in project implementation.
PMs were further encouraged to undertake careful feasibilities before choosing contract forms and types that will inure to the benefit of the project success and enhance value delivery to customers and meet planned project objectives.
The presentation pitched the definition of contract according to the PMI’s PMBOK Guide 6th Edition against other industry definitions and the core meaning of the types of agreements and the coordinated relationships that should exist between parties of contracts.
The elements of a contract as offer, acceptance, considerations, capacity and competency, maturity of obligation, written requirements and legality were discussed and explained to participants. Also, components of agreement documents as statement of work, schedule baseline, performance reporting, period of performance, roles and responsibilities, seller’s place of performance, pricing, payment terms and place of delivery were discussed. Others such as inspections and acceptance criteria, warranty, product support, limitation of liability and fees and retainage were also discussed and questions responded to. Additionally, major components of an agreement as payment terms, place of delivery, inspection and acceptance criteria, warranty, product support, limitation of liability and fees and retainage were also looked at.
Three contract types with their varieties were reviewed referencing how and on which projects to use them
- Fixed Priced Contracts,
- Cost reimbursable Contracts and
- Time and Material Contracts with their integrated varieties.
Contract management was defined ‘’as the processes of managing contracts from partners, vendors, customers and employers’’. The contract lifecycle management was discussed to include requests, authorization, negotiations, approval, execution, obligations, compliance and renewals.
Key indicators of successful contract management were identified as the
- Process of enhancing competitive advantage,
- Optimizing financial and operational performance
- Increasing supplier loyalty
- Mitigating supplier risk
- Minimizing rogue spending
PMs were encouraged to appreciate the fact that
- They play a central role in effective delivery of projects to meet project objectives and deliver value to clients
- That the failure of appropriately selecting contract forms and types is their sole responsibility
- That they are responsible for the preparation and close review of procurement documents, risk assessment and in most cases, technical evaluation and award of contracts.
The two-hour presentation and discussions had eighty-three (83) participants attending. All credentialed participants had 2 PDUs reported on their behalf.
Emmanuel Tetteh Attianah, PMP, PgMP
Project Management Institute