A company's leadership puts into place adequate and effective contract management and project procurement procedures to improve corporate operating activities in the short and long terms. These procedures also help senior executives ensure timely task completion.
Project procurement consists of procedures, guidelines and tools that a company uses to ensure timely completion of project activities. A project manager oversees procurement activities, discusses with external vendors and resource providers, making sure contractors abide by project specifications and provide goods and services on time.
Contract management relates to techniques that a firm applies to monitor contract performance and ensure that parties to a contract conform to guidelines. A corporate contract manager also reviews costs and prepares variance reports, comparing actual costs to budget amounts.
Contract management is distinct from project procurement. Both concepts, however, may interrelate. For example, a project manager may sign procurement agreements with vendors and third-party contractors. The project leader may work with a contract manager to ensure that business partners complete duties in accordance with project specifications.
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