💡 Today's 5 Core Techniques
Contract Types (FFP / T&M / Cost-Reimbursable)
FFP (Fixed Price): Seller bears cost risk. Best when scope is well-defined. T&M (Time & Material): Buyer bears risk. Best for undefined scope. Cost-Reimbursable: Buyer pays actual costs plus fee. Highest risk for buyer.
Source Selection Criteria
The criteria used to evaluate and select vendors (price, technical approach, experience, references). These must be defined BEFORE receiving proposals to ensure a fair, objective selection.
Compliance Management
Projects must comply with all applicable laws, regulations, and organizational policies. If a law changes mid-project, the PM must assess the compliance impact and take corrective action immediately.
Benefits Realization
The project's ultimate goal is to deliver business value, not just deliverables. The PM must understand the expected benefits and ensure the project outputs enable those benefits to be realized.
Organizational Culture & Governance
Understanding the organizational structure (functional, matrix, projectized) affects PM authority and resource availability. Governance frameworks define the rules, roles, and decision-making processes.
Practice Scenarios
A vendor on a Fixed-Price contract encounters unexpected cost overruns. Who bears the financial risk?