Discounted cash flow is an project investment valuation method whereby future cash flows are discounted by a rate that accounts for the time value of money. It is used to make decisions between various available projects, or to determine the economic feasibility of a project. For example, when a business is expecting revenue of $250,000 next year, the current … [Read more...]
Selecting a contractor is one of the most difficult aspects of project management. It's why most large organizations have an entire department devoted to project procurement. Contractors all want the work, but how do you know they aren't too busy and will get to your project later than you'd like them to? How do you know they're really as capable as they … [Read more...]
The procurement side of project management can be daunting. Contractual issues are routinely some of the biggest and most expensive problems that require solving, and the parties are often very passionate about their case. Almost without fail, the common theme is that the issue could have been addressed at the origin with a better contract. But alas, this is … [Read more...]
Most projects require some form of external purchasing (procurement) in order to meet their goals. Executing these procurements to fulfill the needs of the project falls under the knowledge area of Project Procurement Management. Contractors usually have better expertise or experience and can provide a higher quality product. But often they are not … [Read more...]
Contractual issues between organizations performing a project can be costly and time consuming, not to mention embarrassing for a project manager. I hope you've never experienced major contract disputes with a subcontractor or subconsultant, but in any case, be sure to heed the following 10 doctrines to make sure your projects stay out of trouble. Project Management is … [Read more...]
If there's anything that can get a project manager's reputation into the toilet in a hurry, it's contractual issues with vendors. I've seen a few messy issues in my time, and I don't wish this on anyone. Fortunately there are things you can do on the front end to ensure it doesn't happen to you. Follow these 11 tips to ensure your projects stay out of contract … [Read more...]
