Importance of C/P

What is important about C/P that I should know about?

Caveat - 1

·      First, the legal protection

·         We are not lawyers

·         We cannot provide definitive legal recommendations and advice

·         Nor do we intend to

·      However, there do seem to be some general principles

·         Although interpretation varies from country to country

·         And jurisdiction to jurisdiction

Caveat - 2

·      When it comes to legal verbiage

·         All contract wording, should be subjected to review by competent legal personnel

·         Whether "boiler plate" or specific to the project

·      For a detailed discussion of contract law

·         Refer to appropriate legal texts on the subject

·         That are relevant to the jurisdiction

·         And govern the particular project and contract

What does C/P involve?

·      Compared to doing project work in-house

·         I.e. with internal staff and resources

·         Independent sources are signed up

·         To provide some or all of the necessary project resources

·      In general, this requires two things

1. A much more thorough determination of the work to be done

·         Carefully and unambiguously documented

2. The introduction of specific "processes"

·         To establish and manage a legal contract

An important distinction

·      There is another important point about C/P

·         The law of contracts in most jurisdictions differs from other branches of law

·      Common law

·         Generally establishes rights and duties

·         That the law will enforce

·      In contract law

·         Two or more parties create a contract

·         For and between themselves

·         And it is the contract that can be enforced

·         In a court of law

·         Upon application to the court by one or the other party

Organizations involved with contracts

"In the organization I work for . . .

·         We have a well-established procurement department"

·         Or it might be called Purchasing Department

·         Or perhaps the Contracting or Contracts Department

·         We'll settle for C/P department

·         "They take corporate responsibility for all contracting

·         So, do I really need to know about this stuff?"

Organizations with C/P departments

C/P departments in mid-size to large organizations

·         Typically have in place

·         Well-established policies, procedures and processes

·         These standardized policies and processes are applied to all major acquisitions

·         Whether the acquisition is of buildings, infrastructure, equipment, systems, hardware, software, or just bulk supplies

So, do I really need to know about it?

·      The answer is, yes, definitely

·      Why?

·         Because the standard contracting approach of mid-to-large organizations

·         Are not necessarily consistent with the best project strategies

·         Indeed, they may actually conflict with the best strategy on your type of project

What else?

·      You should also know about C/P

·         Because different procedures

·         Are appropriate for different situations

·         And you must be sure that the C/P process applied

·         Is right for your situation!

·      And you must know

·         The legal ramifications

·         Of the work you are doing

·         We shall be discussing this in later Issacons

Organizations not involved in contracting

"In the organization I work for . . .

·         We do all our work in-house

·         Or, we don't have a department that deals with contracts anyway

So, why should I bother with this subject?"

·         First, because one day your project may lack a critical resource

·         And you will need to obtain it in a hurry

·         From outside the organization

·         Secondly, because understanding the process

·         Provides a valuable insight

·         Into managing project work