Project Management Trade-off Skills
Project management is a systematic approach to manage projects by applying tools and techniques to project activities to enhance an organization’s overall performance and productivity, resulting in a return on its investment. Quality project management best practices can have an impact on net earnings, and some companies fall short due to the absence of consistent and effective project management processes (Labrosse, 2008). Project teams often lose sight of project objectives relative to time and cost, while primarily focusing on the tasks at-hand and the associated deliverables. Effective management processes include project managers (PM) having the skills to understand the benefits of establishing a balanced approach to addressing project management trade-offs such as cost, time, and performance objectives (Smith-Daniels & Smith- Daniels, 2008). Successful project management can depend on how well resources are controlled; however, since not all projects are the same, a PM’s trade-off skills play an essential role when determining the most lucrative …show more content…
The cost-plus contract pays the agreed cost in addition to fees established during the contract cost estimation period. However, the fee is fixed and does not allow for additional negotiations or incentives, which could lead to cost overrun by the contractor. In the case of the fixed-price contract, the contractor (buyer) accepts responsibility for completing the project based on a set dollar amount. Any profit acquired by the buyer will be based on completing the project under budget. Thus, no profit if the project is not competed on time with the available resources. However, from the seller’s perspective there is an associated risk if the buyer does not complete the project within the agreed contract amount (Weitzman,
Project management is a systematic approach to manage projects by applying tools and techniques to project activities to enhance an organization’s overall performance and productivity, resulting in a return on its investment. Quality project management best practices can have an impact on net earnings, and some companies fall short due to the absence of consistent and effective project management processes (Labrosse, 2008). Project teams often lose sight of project objectives relative to time and cost, while primarily focusing on the tasks at-hand and the associated deliverables. Effective management processes include project managers (PM) having the skills to understand the benefits of establishing a balanced approach to addressing project management trade-offs such as cost, time, and performance objectives (Smith-Daniels & Smith- Daniels, 2008). Successful project management can depend on how well resources are controlled; however, since not all projects are the same, a PM’s trade-off skills play an essential role when determining the most lucrative …show more content…
The cost-plus contract pays the agreed cost in addition to fees established during the contract cost estimation period. However, the fee is fixed and does not allow for additional negotiations or incentives, which could lead to cost overrun by the contractor. In the case of the fixed-price contract, the contractor (buyer) accepts responsibility for completing the project based on a set dollar amount. Any profit acquired by the buyer will be based on completing the project under budget. Thus, no profit if the project is not competed on time with the available resources. However, from the seller’s perspective there is an associated risk if the buyer does not complete the project within the agreed contract amount (Weitzman,