A paper presented to the International Seminar on Project Management for Developing Countries, September 4 to 6, 1991, in New Delhi, India. The audience was made up of mostly construction people, but much of the following content could equally apply to large projects in other areas of application.

Executive Summary  | Index | Part 1 | Part 2 | Conclusions | References


The manner in which the project is to be facilitated or procured is an issue which should be dealt with very early in the project planning phase, since it will have a significant effect on the way in which the project parameters are expressed. For instance, construction which is to be accelerated, or "fast-tracked", should require a shorter schedule but will carry significantly higher risks. Conversely, the more time taken to improve the definition of the project's scope, the lower should be the project risks. In each case, the form of contracting must be tailored to suit.

Hence questions such as: Is the sponsor and/or senior management committed to realistic scope, quality, time and cost parameters for the various contracts? Is the project team committed to preparing and administering contracts such that they will do whatever it takes to get the job done right?

Are the contract/procurement function and the efforts of the rest of the project team integrated to ensure a common commitment to the objectives of the project in contractual decision making?

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