A project manager is an independent professional who is employed to perform a broad range of services. These may include planning, budgeting, controlling, and documenting all aspects of a specific project. If you work as a project manager for a client, you will act on behalf of your employer and ensure you adequately manage the project/service of your client. To do that effectively, you’d need to write and get the client to sign a project management agreement with you.
The agreement is a contract that obligates you as the project manager and the contractors involved to provide the deliverables of a project. Also, the agreement also obligates the client or owner of the project to pay for the services and bear the cost of materials needed to achieve its goal. It is important you have a project management agreement in place before commencing any job because of there no legal contract without the agreement.
The task requiring your service as a project manager may be simple or complex, depending on the nature and scope of work. The complexity of the review process of a project management agreement varies with scope as well. A complex project belonging to a large organization may be subjected to a series of public review. At the same time, that of a small business may require just the owner and the project manager to review the agreement.
There are no hard and fast rules to project management agreement writing. The content of the agreement is often dependent on the scope and complexity of the project management contract type. We will give you the basic information that should be captured in your agreement irrespective of the nature or scope of the project.
Project management agreement outline - the following section should be captured in a typical agreement template:
The agreement should start with the introduction of parties after stating that it is a project management agreement. The document has to define the date the agreement would take effect between the owner and the project manager. It must contain your business name, mailing address, contact address, and the phone numbers of parties involved.
Overview and table of content are applicable if the document is a multi-paged agreement.
Make a statement about customer issues and the solution/service you have proposed to provide.
You should describe the specific project management service you’ve been employed to render. Also, give brief information on your strategy, benefits, and budget in your project management agreement.
The agreement should include details about fees and pricing models. Fixed contracts, also known as lump sum contracts, may be charged as a one-time service. If the project is a recurring type, you may consider a different pricing model and request a retainer fee.
Define key performance index to measure how well you are doing in the project. This would help your client to measure how profitable the project is compared to its expenses.
This section makes a provision in your project management agreement, limiting your liability to potential damages and loss during the course of carrying out your service.
This section captures other conditions that have not been captured in other parts of the agreement.