PROGRAM MBA - SEMESTER IV

SUBJECT CODE & NAME PM 0018 CONTRACTS

MANAGEMENT IN PROJECTS
1.
Explain the essential elements of a project
contract.
These elements of a valid contract are as follows:
1. Proposal (offer) and acceptance
There must be a lawful proposal and a lawful acceptance of the proposal for a
contract. The word lawful before offer and acceptance signifies that the proposal
and acceptance must satisfy the requirements of the law of the contract. There
must be at least two parties to a contract, i.e., one party making the
proposal and the other party accepting it. The terms of the proposal must be
definite and the acceptance of the proposal must be absolute and
unconditional. The acceptance must also be according to the mode prescribed and
must be communicated to the proposer. In the case of project contracts, one party
is the owner/purchaser and the other party is the contractor.
2. Intention to create legal relations
There must be an intention among the parties that the agreement should be
attached by legal

READY MADE SOLVED ASSIGNMENTS, PROJECT

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2.
Explain the steps involved in the contract
closure process.

Steps Involved in the Contract Closure Process

1. Collecting contract documentation: In order to close a contract successfully,
it is important to collect all the relevant documents for review. This may
include collecting all the documents regarding the original contract, variations,
schedules and performance reports.
2. Completing contractor final review: It includes a complete review of all
contracts and verifying that all the requirements and outputs specified in the
contracts have been met. It also aims to ensure that all the variations to the
contract requirements have been documented with a clear tracking system,

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3. What is an outsourcing contract? What are the
Advantages and Disadvantages of Outsourcing?
Outsourcing Contracts
Outsourcing a contract implies a process in which one party contracts
a work to another party. First, the outsourcer accepts the tasks given by
the organisation. Then, the contract is and involves key contents such as
scope, conditions, deliverables, etc.
The advantages of outsourcing are as follows:
Access to resources and knowledge: It implies that access to resources is
more important than their ownership. If organisations spend on acquiring
resources and creating skills and

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4. Discuss the process of procurement.

The steps of the procurement process are as below:

Planning purchases and acquisitions

Making procurement plan
Selecting the contract approach
Soliciting bids
Negotiation
Awarding the contract
Purchase
Evaluation

1. Planning purchases and acquisitions: It involves identifying the goods or

services that need to be procured. The contract type is determined under this
step.

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5. What is contract management? Describe its

important features.
Contract Management
Contract management refers to the management of contracts by negotiating the
terms and conditions of the contract and ensuring compliance. It implies
systematically managing the contract creation and maximising the operational
and financial performance of contracts. An increase in the use of contracts in
organisations requires growing recognition for improving contractual processes;
thus proper management of contracts is essential. Contract management is a
process that enables both parties of a contract to meet their obligations in order to
deliver objectives required in the contract.
It covers the transition and implementation, ongoing day-to-day management,
evaluation, and succession planning. The aim of contract management is to
achieve services as agreed, efficiency,

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6. Write short notes on:

Contract Structure and its elements.
Software Licensing
Contract Structure
There are several types of contracts in different industries. Contracts differ
in their terms such as type of work, number of parties involved, degree of
risk, price of the contract, etc. However, the structure of a contract is almost
similar in most industries. Most contracts follow the same basic format.
Generally, contracts begin with a Preamble and continue with recitals
or introduction. Some contracts may not include the recitals or
introduction units, for example, contracts with short time periods. All
contracts have a main section, the body of the contract, which addresses
the reason why the contract is being entered into and

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