vb.net barcode scanner programming 12: Project Procurement Management in Software

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12: Project Procurement Management
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Personnel Key personnel involved or who have been requested to remain for a specified period of time to provide services on a contract Reporting Termination Format, frequency, distribution list, tool, and so on Stopping the work before it is complete
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Waivers How or if rights can be waived As a project manager, you need to understand how you may waive certain rights intentionally or unintentionally (for example, allowing changes to occur without going through the change process) Warranties Measure of quality and duration of coverage
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No wonder people develop headaches while reading contracts! They can be quite complex What s more, legal jargon and even the placement of a comma can change the meaning of a contract Unless you speak legalese, the best thing you can do is get a lawyer or subject matter expert involved to help ensure you and the other parties understand the language of the contract The good news is, many great forms, templates, and software applications are available to make this easier
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Q: A:
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What s a real-world example of a contract misinterpretation that provides a good lesson learned Try this one on for size: On a contract long, long ago, the PM was reviewing the service level agreements (SLAs) for computer support (for example, hours of support, system availability, and the financial penalties associated with missed SLAs) The contract language was not clear, and when the PM asked the contract manager to explain it, he simply said, Don t worry There will never be penalties against the SLAs because of the way the contract is worded Well, the first time a critical server went out of operation due to a failure, the client came to the PM and said, You owe several thousand dollars in penalties for the outage! The customer had interpreted the contract language in one way, whereas the PM and team interpreted it totally different After heated discussions, the legal team was called back to rewrite the language around SLAs and penalties A penalty was paid and the contract rewritten to ensure there was no confusion in the future The moral to this story is that unclear language is not good and when left to interpretation can create a lot of confusion and ill feelings in the end
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Elements of a Legally Binding Contract
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Under normal circumstances, a contract must contain certain key elements to be legally binding and enforceable:
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Offer and acceptance The contract must include an offer to provide goods or services and acceptance of the offer
NOTE
A counteroffer is not an acceptance and will normally be treated as a rejection of the offer
Mutual consideration The mutual exchange of something of value In order for the contract to be valid, the parties to a contract must exchange money or something of value (In the case of the sale of an event ticket, the buyer receives something of value in the form of attendance to the game, and the seller receives money) Legal purpose A contract cannot violate legal, government, or public policy For example, if a contract is for the sale of illegal drugs, the contract is not enforceable Legal capacity Buyer and seller must have legal capacity to enter into contract for exchange of products or services For example, someone trying to sell something they don t own does not have legal capacity Other elements of a legally binding contract are
Good faith It is implicit in all contracts that the parties are acting in good faith For example, if the seller of a bike knows the buyer thinks he is purchasing a motorcycle instead of a bicycle, the seller is not acting in good faith and the contract will not be enforceable Performance or delivery In order to be enforceable, the agreed-to action of the contract must be completed (for example, the tickets have to be delivered as promised and payment received to complete the transaction) Mutual consent There must be mutual consent between the buyer and seller (a meeting of the minds ) over products, services, or results to be provided and received Mutual understanding There must be a clear understanding by all parties to the contract of what is being provided and received For example, in a contract for the sale of land the buyer may think he is buying a lot to build a house on when the seller is actually contracting to sell a pad of land for commercial use (zoned commercial use only) There is no meeting of the minds, and the contract will likely be held unenforceable
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