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APDC Managing, Contracting & Procurement

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American Property Development Corporation (APDC) a designer and developer of outdoor shopping malls and small office complexes has decided to standardize their project management practices and processes across the national organization. The goal is to standardize on one single project scheduling tool,and have the tool installed and to be operational within 90 days. To this end they are forming a central Project Management Office (PMO). Until now, project managers (there are 40 presently on staff distributed all over the USA and Canada) have been able to use whatever scheduling tool they liked, within their budget constraints. They have also been able to buy equipment and engage contractors at will. The PMO will be determining one scheduling tool that all PMs will be expected to use, exclusive of any other scheduling tools. The PMO will also develop and implement a standardized procurement process. Since the PMs are located across the USA and Canada, a web-based solution seems likely to be the most successful tool.

As the Project Manager, you have been charged with implementing the procurement process and you decide your first project will be purchasing the scheduling tool for ACME Development Corporation.

Details: Among the different types of contracts, which contracts do you think would be easiest for APDC to manage and why? Which contracts would be the most difficult for APDC to manage and why?
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Details: Among the different types of contracts, which contracts do you think would be easiest for APDC to manage and why? Which contracts would be the most difficult for APDC to manage and why?

There are different types of contracts like the fixed price contracts, cost reimbursement contract, incentive contract, indefinite delivery contract, and time and materials, labor-hour and letter contracts. Each contract has special uses but the type of contract that would be suitable for American Property Development Corporation is the fixed price contract with an incentive for timely completion of contract.

The contract between American Property Development Corporation and the vendor for supplying the scheduling tools will describe the rights and responsibilities of the parties to the contract. The contract should have details for the performance, source code accessibility, software, data security and accessibility over the internet for American Property Development

Corporation

In general the contract for a scheduling tool for project management is a software licensing agreement. American Property Development Corporation will not be able to obtain an ownership right to the scheduling tool but will get the right to use the scheduling tool. There will be a clause by which American Property Development Corporation will be required to pay annual fees for the use of the scheduling tool. Further, there will be a maintenance agreement that will ensure that every year the vendor will provide American Property Development Corporation with the latest version of the scheduling tool.

The contract needs to define the exact scope of the license. The terms should spell out that American Property Development Corporation has …

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