Question

You are a risk auditor for your company. You are reviewing the contract types a project manager has used in her project. Which contract type has the most
risk for the project manager as a buyer? Why??

Answer 1

Project manager as a buyer is the practice of guiding the team to achieve goals and meet the criteria for success within the defined timeframe. The main challenge for project management is to achieve all project objectives within the set limits. This information is often described in project documents created at an early stage of the development process. The main limitations are scope, time, quality and budget. The second challenge is to optimize the allocation of necessary resources and implement them to achieve pre-determined goals.

The purpose of project management is to develop a complete project that meets the client's goals. In many cases, the goal of project management is also to create or modify customer information to meet customer goals. Once the client's goals are clearly established, they must influence the decisions of other people involved in the project, such as project managers, designers, contractors and subcontractors. An improperly defined goal, or a well-defined project management goal, undermines the decision.

A project is a temporary activity designed to produce a single product, service, or outcome with a specific start and end (usually time-limited and often determined by budget or staff) implemented to achieve goals and objectives. Special purpose is usually to get useful changes or add value. Temporary characteristics of a project as opposed to recurring normal business (or operation) activities, permanent or semi-permanent functional activities for the production of a product or service. In practice, management of such different production methods requires the development of different technical skills and management strategies.