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The importance of contract execution management

in project management

 

STUDENT PAPER

By Yang Xu

SKEMA Business School

Paris, France

 



ABSTRACT

The modern enterprise’s economic contacts and the determination of all kinds of relations are mainly carried out through contracts. As one of the important contents of the modern enterprise management system, contract management is one of the important factors to realize the successful operation and management of enterprises. Contract management is an important part of project management. Project contract management is an important guarantee to ensure the smooth implementation of construction projects. It is also an important means to ensure the legitimate interests of the project implementation.

Key words: Contract Management; Enterprise Project Management; Importance; Execution; risk identification, Management of risk

INTRODUCTION

In a world of business were contract are the most important proof that we can have, the contract execution management in a project is important. The implementation of contract management helps to improve business development, reduce investment in business costs, and improve an important way of business economic benefits.

When we talked about the contract execution management in enterprise project management we can mainly follow two aspects to consider: On the one hand, the production and operation can be successfully merged with the market organically so that the competitiveness and resilience of the enterprise in the market can be enhanced; on the other hand, the contractual execution management can enable the enterprise to maintain its own rights while performing its functions so as to ensure the economic efficiency of enterprises.

Therefore, contract execution management occupies an absolute position in project management. Systematically elaborating on its characteristics and importance possesses the significance of the times and science.

The role of contract management in the project can be subdivided into: helping company to establish and improve the concept of the legal system and the using of legal means to safeguard their legitimate rights and interests; Promote the level of their own management to improve and create business benefits; Clarify the business and Employee rights and obligations; contract management can effectively reduce risk and ensure equity; it can also improve efficiency and quality.

However, in today’s society, many companies or engineering projects lack a contract management system. And it can cause issues very important for the company: For example, the lack of dynamic management of the contract; the contract is not standardized, the terms are too simple; the concept of contract law is weak, etc.

This paper mainly analyses the importance of contract execution management in project management, analyzes the specific content of contract execution management and its focus in different stages, and then emphasizes that contract execution management is the top priority of project management.

From this analysis this paper will help answer the following question:

1   How to Identify Contract Defects and Risks in Projects?

2   How to effectively implement the contract management can reduce or avoid the risk?

3 Correctly identify the Strengths; Weaknesses; Opportunities; Threats of contract management in project.

 

More…

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: Xu, Y. (2018). The importance of contract execution management in project management, PM World Journal, Volume VII, Issue VII – July.  Available online at https://pmworldjournal.net/wp-content/uploads/2018/07/pmwj72-Jul2018-Xu-importance-of-contract-execution-management-student-paper.pdf



About the Author


Yang Xu

Paris, France

 

 

 

 

Yang Xu is an MSc student in SKEMA Business School, majoring in Project and Programme Management & Business Development (PPMBD). He graduated from la Rochelle business school (sup de co) and obtained a Bachelor’s degree in commercial management. He had worked in urban construction in China and now has his own business in Paris. He lives in Paris, France now and can be contacted at [email protected].

Yang chose SKEMA Business School because first it started out to be more suitable. The second was because there are more international students and internationalization in the school. The school atmosphere was very good. At the same time, the school rankings were not bad, still in progress.

He has been in France for 5 years. He says “the French people are good and bad. This is certain. French elegance, Paris, the temperament of those ladies, make you think that is the classic interpretation. However, in some small cities, some French people are still quite arrogant. They have some prejudice against China. This was something I did not expect before I came to France. They all say that French people are romantic, but they will always deny that because their romance is not deliberate, but into life, just as visiting the park, they often see Grandma and Grandpa hand in hand, watching in the years of quiet.

Skema helped me a lot, and after two years of classes in Skema I learned a lot about business theory, which made me yearn more for the coming life.”