2 management - School of International Business and ...

Wolfgang Cronenbroeck
2.1.1 PROJECT CONTRACT ANALYSIS
Following the approval of the project, the first step covers a thorough review and assessment
of the deliverables and services stipulated in the project contract as well as its formulation. Fre-
quently, for small and mid-sized projects, a detailed form of project analysis is not carried out.
Most can be excused on the basis of available time. But the project manager is strongly advised
here to carry out at least a shortened and simplified form of project analysis, or so-called 'contract
analysis.' This analysis helps the project manager to allow the project and its contents to sink in.
The following processing steps are to be carried out in the contract analysis phase:
– Project contract description
– Project goals
– Project priorities
– Project environment
– Stakeholders
– Project risks
2.1.1.1 PROJECT CONTRACT DESCRIPTION
The project manager and the client are responsible for defining the project’s realistic assump-
tions. Three components are included a contract: time, resources and performance scope; to-
gether, they form the 'magic triangle' (see Fig. 2), and must be kept in balance in a project in order
to reach the project goal. These components are defined as follows:
Performance scope:
Resources:
Time:
What belongs to it, and what doesn't? What should be the components of the outcome?
What persons, financial and material resources are available?
What time is available or needed? When is the project expected to start and end?
The success of the entire project depends upon the clarity of the project contract.
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