How to obtain the best professional contract as a PMO



By Roy Mikhael

SKEMA Business School

Lille, France



This paper has been prepared for the course entitled “Worldwide Project Contract”, for the Master of Science “Program and Project Management and Business Development” of Skema Business School. The purpose of this paper is to ensure how we can get the best professional contract and how to avoid the major problems related to payment and change orders. Also, we will be mentioning the relationship between payment and change order and how they affect the scope and how they affect both parties of the contract.

Also, the analysis of this paper provides us with the best alternative for facing change orders. Thoroughly review the contract to alleviate risk and for the payment; the best one was payment bonds.

Key words: Change order, Payment, Owner, Stakeholder, Contract, Contractor, Project, Compensation, Repayment


Working without an agreement is simply requesting inconvenience. Without a legitimately restricting contract, a customer can ask for your administrations and after that not pay for all your chance and diligent work. Yet, did you realize that an agreement can likewise be utilized to ensure your solicitations are paid on time?

A contract will help layout the consent to finish work between a merchant and a customer. It permits both the seller and the customer to get in agreement when choosing the extent of work, installment rates, installment terms, due dates, and so forth. This will ideally keep any question down the line and guarantee the two gatherings comprehend expectations and task terms.

Another critical part of an agreement is deciding precisely how you’ll get paid. When the two gatherings know about how and when an installment is normal, it keeps a postponement in installment. Moreover, it enables all charging data to be all together from the beginning, and this can be utilized to set up repeating charging in bookkeeping programming, which will spare you time and guarantee your solicitations are sent when required. Proficient solicitations are the initial step to getting paid.

What happens when a customer hasn’t paid the receipt by the settled upon date? An agreement helps settle this issue and spurs speedier installments since it will portray and authorize any late expenses the customer will bring about (for instance, a 2% intrigue charge for every month after the installment due date). Other than late charges, conceding to non-installment terms could mean you quit working for the customer until the point that the receipt is forked over the required funds.

Also, another important factor that both parties should take into consideration is the change order. In the construction industry, Change Orders represent between 5% and 10% of the total value of the Project. With time, there are billions of dollar squandered, in light of poor change order administration. Change Orders are unavoidable. A Change Order will affect the task in term of costs, time, efficiency et cetera. Thus, managing those progressions is one of the greatest difficulties a Project, alongside the Owner and Contractor, may confront.

A change Order is a formal and solid request that a proprietor proposes to the contractual worker with a specific end goal to roll out an improvement or to erase something in the extension, process, or any piece of an undertaking.

In a venture, contracts can be changed as the due date tags along, and this is when things may get dubious. Some change orders influence the expenses to build, give additional work, and don’t enable more opportunity for the contractual worker to complete the additional measure of work.

The paper will provide answers to the following questions later in my paper covering:

  • What differences exist among the different Change order and payment forms?
  • Which one would be the most efficient for the Contractor?
  • Which one would be the most suited to the Owner?

Understanding the significance of those structures, and the need of them being painstakingly composed, and very much perused is a key achievement factor of one’s task.


To read entire paper, click here


Editor’s note: Student papers are authored by graduate or undergraduate students based on coursework at accredited universities or training programs.  This paper was prepared as a deliverable for the course “International Contract Management” facilitated by Dr Paul D. Giammalvo of PT Mitratata Citragraha, Jakarta, Indonesia as an Adjunct Professor under contract to SKEMA Business School for the program Master of Science in Project and Programme Management and Business Development.  http://www.skema.edu/programmes/masters-of-science. For more information on this global program (Lille and Paris in France; Belo Horizonte in Brazil), contact Dr Paul Gardiner, Global Programme Director [email protected].

How to cite this paper: Mikael, R. (2018). How to obtain the best professional contract as a PMO, PM World Journal, Volume VII, Issue VI – June. Available online at https://pmworldjournal.net/wp-content/uploads/2018/06/pmwj71-Jun2018-Mikhael-how-to-obtain-the-best-professional-contracts-as-pmo.pdf

About the Author

Roy Mikhael

Lille, France




Roy Mikhael is currently a Master of Science in Project Program Management and Business Development Candidate at SKEMA Business School, Lille Campus, based in France for the academic year 2017-2018. As part of a key module “The International Contracts” qualification requirement under the direct supervision of Professor, Paul D Giammalvo, the Course Director and the Professor Paul Gardiner, the Program Director, this student paper has been produced with the purpose of getting it published in the PM World Journal. He hails from KAFARAAKA in north Lebanon, famous globally for its rich crop cultivation of Olive and producing Olive Oil.

Previously, he has served as Project manager assistant in TechShop and business developer for 8 month in the same company. Also, served as Project manager assistant in D.G. Jones & Partners Middle East Limited SAL Lebanon for the LAU Project (multimillion dollar project >10M $). He has completed his graduation in Business Management with honours from American University of Culture and Education, North Lebanon during the year 2015. He is a certified AgilePM® Professional and GPM (Green Project Management) practitioner. Contact him on: [email protected] or [email protected] and on https://www.linkedin.com/in/roymikhael/