Agreements
“Agreements” is an input for the process “Develop Project Charter”.
Agreements are used to define initial intentions for a project. Agreements may take the form of contracts, memorandums of understanding (MOUs), service level agreements (SLA), letter of agreements, letters of intent, verbal agreements, email, or other written agreements. Typically, a contract is used when a project is being performed for an external customer.
“Agreements” is an input for the process “Determine budget”.
Applicable agreement information and costs relating to products, services, or results that have been or will be purchased are included when determining the budget.
“Agreements” is an output for the process “Conduct Procurements “.
A procurement agreement includes terms and conditions, and may incorporate other items that the buyer specifies regarding what the seller is to perform or provide. It is the project management team?s responsibility to make certain that all agreements meet the specific needs of the project while adhering to organizational procurement policies. Depending upon the application area, an agreement can also be called an understanding, a contract, a subcontract, or a purchase order. Regardless of the document?s complexity, a contract is a mutually binding legal agreement that obligates the seller to provide the specified products, services, or results, and obligates the buyer to compensate the seller. A contract is a legal relationship subject to remedy in the courts.
The major components in an agreement document will vary, but may include the following:
– Statement of work or deliverables,
– Schedule baseline,
– Performance reporting,
– Period of performance,
– Roles and responsibilities,
– Seller?s place of performance,
– Pricing,
– Payment terms,
– Place of delivery,
– Inspection and acceptance criteria,
– Warranty,
– Product support,
– Limitation of liability,
– Fees and retainer,
– Penalties,
– Incentives,
– Insurance and performance bonds,
– Subordinate subcontractor approvals,
– Change request handling, and – Termination clause and alternative dispute resolution (ADR) mechanisms. The ADR method can be decided in advance as a part of the procurement award.
“Agreements” is an input for the process “Control Procurements “.
Agreements are understandings between parties, including understanding of the duties of each party.
This definition was found in the PMBOK V5
Go back to the Glossary or to the Mapping